Stock Analysis on Net

PayPal Holdings Inc. (NASDAQ:PYPL)

This company has been moved to the archive! The financial data has not been updated since May 9, 2023.

Financial Reporting Quality: Aggregate Accruals

Microsoft Excel

Balance-Sheet-Based Accruals Ratio

PayPal Holdings Inc., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Operating Assets
Total assets 78,717 75,803 70,379 51,333 43,332
Less: Cash and cash equivalents 7,776 5,197 4,794 7,349 7,575
Less: Short-term investments 3,092 4,303 8,289 3,412 1,534
Less: Funds receivable and customer accounts 36,357 36,141 33,418 22,527 20,062
Operating assets 31,492 30,162 23,878 18,045 14,161
Operating Liabilities
Total liabilities 58,443 54,076 50,316 34,404 27,946
Less: Short-term debt 1,998
Less: Current portion of long-term debt 418 999
Less: Long-term debt, excluding current portion 10,417 8,049 8,939 4,965
Operating liabilities 47,608 45,028 41,377 29,439 25,948
 
Net operating assets1 (16,116) (14,866) (17,499) (11,394) (11,787)
Balance-sheet-based aggregate accruals2 (1,250) 2,633 (6,105) 393
Financial Ratio
Balance-sheet-based accruals ratio3
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Accenture PLC 21.70% 27.93% 3.73%
Adobe Inc. -8.24% 14.14% 8.20% 2.25%
Autodesk Inc. 78.69% 151.86% -160.20%
Cadence Design Systems Inc. 26.65% 4.43% 9.21%
CrowdStrike Holdings Inc.
International Business Machines Corp. 1.55% -7.39% -9.64%
Intuit Inc. 85.68% 139.73% -1.39%
Microsoft Corp. 42.27% 40.52% 14.41%
Oracle Corp. 9.90% 5.62% 1.35%
Palo Alto Networks Inc. -124.73% 85.21% 69.06%
Salesforce Inc. 57.74% 10.87% 65.87%
ServiceNow Inc. 12.89% 34.89% 19.95%
Synopsys Inc. 5.01% 0.36% 8.40% 7.93%
Balance-Sheet-Based Accruals Ratio, Sector
Software & Services 29.45% 17.17% 7.73% 200.00%
Balance-Sheet-Based Accruals Ratio, Industry
Information Technology 21.68% 21.28% 2.85% 200.00%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Net operating assets = Operating assets – Operating liabilities
= 31,49247,608 = -16,116

2 2022 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2022 – Net operating assets2021
= -16,116-14,866 = -1,250

3 2022 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -1,250 ÷ [(-16,116 + -14,866) ÷ 2] =

4 Click competitor name to see calculations.


Cash-Flow-Statement-Based Accruals Ratio

PayPal Holdings Inc., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income 2,419 4,169 4,202 2,459 2,057
Less: Net cash provided by operating activities 5,813 6,340 5,854 4,561 5,483
Less: Net cash (used in) provided by investing activities (3,421) (5,485) (16,218) (5,733) 840
Cash-flow-statement-based aggregate accruals 27 3,314 14,566 3,631 (4,266)
Financial Ratio
Cash-flow-statement-based accruals ratio1
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Accenture PLC 11.87% 11.80% -13.65%
Adobe Inc. -19.93% 9.21% -0.48% -9.78%
Autodesk Inc. 45.59% 41.27% -223.04%
Cadence Design Systems Inc. 15.03% -5.75% -1.21%
CrowdStrike Holdings Inc.
International Business Machines Corp. -7.22% -1.64% -13.41%
Intuit Inc. 25.60% 58.72% -34.22%
Microsoft Corp. 13.42% 17.68% -8.19%
Oracle Corp. -30.58% 25.81% -31.35%
Palo Alto Networks Inc. -196.64% -68.30% -488.47%
Salesforce Inc. 21.96% 10.57% -5.62%
ServiceNow Inc. 8.80% -21.14% -12.82%
Synopsys Inc. -4.64% -4.88% 0.92% -0.96%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Software & Services 2.39% 11.70% -14.99% -2.43%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Information Technology 3.93% 10.55% -8.35% -22.20%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 27 ÷ [(-16,116 + -14,866) ÷ 2] =

2 Click competitor name to see calculations.