Stock Analysis on Net
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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

PayPal Holdings Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2023 13.62% = 3.50% × 3.89
Dec 31, 2022 11.93% = 3.07% × 3.88
Sep 30, 2022 11.35% = 3.01% × 3.77
Jun 30, 2022 10.40% = 2.64% × 3.94
Mar 31, 2022 17.38% = 4.72% × 3.68
Dec 31, 2021 19.19% = 5.50% × 3.49
Sep 30, 2021 22.34% = 6.62% × 3.37
Jun 30, 2021 23.29% = 6.60% × 3.53
Mar 31, 2021 26.82% = 7.19% × 3.73
Dec 31, 2020 20.99% = 5.97% × 3.52
Sep 30, 2020 17.00% = 4.79% × 3.55
Jun 30, 2020 14.64% = 4.09% × 3.58
Mar 31, 2020 11.75% = 3.46% × 3.40
Dec 31, 2019 14.56% = 4.79% × 3.04
Sep 30, 2019 15.39% = 5.05% × 3.05
Jun 30, 2019 15.55% = 5.19% × 3.00
Mar 31, 2019 14.60% = 4.78% × 3.05
Dec 31, 2018 13.37% = 4.75% × 2.82
Sep 30, 2018 — = — × 2.89
Jun 30, 2018 — = — × 2.77
Mar 31, 2018 — = — × 2.89

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q1 2023 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

PayPal Holdings Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2023 13.62% = 9.63% × 0.36 × 3.89
Dec 31, 2022 11.93% = 8.79% × 0.35 × 3.88
Sep 30, 2022 11.35% = 8.50% × 0.35 × 3.77
Jun 30, 2022 10.40% = 7.79% × 0.34 × 3.94
Mar 31, 2022 17.38% = 13.87% × 0.34 × 3.68
Dec 31, 2021 19.19% = 16.43% × 0.33 × 3.49
Sep 30, 2021 22.34% = 20.09% × 0.33 × 3.37
Jun 30, 2021 23.29% = 20.42% × 0.32 × 3.53
Mar 31, 2021 26.82% = 22.80% × 0.32 × 3.73
Dec 31, 2020 20.99% = 19.59% × 0.30 × 3.52
Sep 30, 2020 17.00% = 15.48% × 0.31 × 3.55
Jun 30, 2020 14.64% = 13.44% × 0.30 × 3.58
Mar 31, 2020 11.75% = 10.27% × 0.34 × 3.40
Dec 31, 2019 14.56% = 13.84% × 0.35 × 3.04
Sep 30, 2019 15.39% = 14.89% × 0.34 × 3.05
Jun 30, 2019 15.55% = 15.36% × 0.34 × 3.00
Mar 31, 2019 14.60% = 13.92% × 0.34 × 3.05
Dec 31, 2018 13.37% = 13.31% × 0.36 × 2.82
Sep 30, 2018 — = — × — × 2.89
Jun 30, 2018 — = — × — × 2.77
Mar 31, 2018 — = — × — × 2.89

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q1 2023 is the increase in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

PayPal Holdings Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2023 3.50% = 9.63% × 0.36
Dec 31, 2022 3.07% = 8.79% × 0.35
Sep 30, 2022 3.01% = 8.50% × 0.35
Jun 30, 2022 2.64% = 7.79% × 0.34
Mar 31, 2022 4.72% = 13.87% × 0.34
Dec 31, 2021 5.50% = 16.43% × 0.33
Sep 30, 2021 6.62% = 20.09% × 0.33
Jun 30, 2021 6.60% = 20.42% × 0.32
Mar 31, 2021 7.19% = 22.80% × 0.32
Dec 31, 2020 5.97% = 19.59% × 0.30
Sep 30, 2020 4.79% = 15.48% × 0.31
Jun 30, 2020 4.09% = 13.44% × 0.30
Mar 31, 2020 3.46% = 10.27% × 0.34
Dec 31, 2019 4.79% = 13.84% × 0.35
Sep 30, 2019 5.05% = 14.89% × 0.34
Jun 30, 2019 5.19% = 15.36% × 0.34
Mar 31, 2019 4.78% = 13.92% × 0.34
Dec 31, 2018 4.75% = 13.31% × 0.36
Sep 30, 2018 — = — × —
Jun 30, 2018 — = — × —
Mar 31, 2018 — = — × —

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q1 2023 is the increase in profitability measured by net profit margin ratio.