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.

Analysis of Liquidity Ratios

Microsoft Excel

Liquidity Ratios (Summary)

PayPal Holdings Inc., liquidity ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Current ratio 1.28 1.22 1.33 1.43 1.27
Quick ratio 1.23 1.19 1.30 1.40 1.24
Cash ratio 1.05 1.06 1.21 1.24 1.13

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).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. PayPal Holdings Inc. current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. PayPal Holdings Inc. quick ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. PayPal Holdings Inc. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Current Ratio

PayPal Holdings Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Current assets 57,517 52,574 50,995 38,495 32,963
Current liabilities 45,101 43,029 38,447 26,919 25,904
Liquidity Ratio
Current ratio1 1.28 1.22 1.33 1.43 1.27
Benchmarks
Current Ratio, Competitors2
Accenture PLC 1.23 1.25 1.40 1.40
Adobe Inc. 1.11 1.25 1.48 0.79 1.13
Autodesk Inc. 0.69 0.83 0.83 0.70
Cadence Design Systems Inc. 1.27 1.77 1.86 1.74
CrowdStrike Holdings Inc. 1.83 2.65 2.38
International Business Machines Corp. 0.92 0.88 0.98 1.02
Intuit Inc. 1.39 1.94 2.26 1.83
Microsoft Corp. 1.78 2.08 2.52 2.53
Oracle Corp. 1.62 2.30 3.03 2.49
Palo Alto Networks Inc. 0.77 0.91 1.91 1.78
Salesforce Inc. 1.05 1.23 1.08 0.95
ServiceNow Inc. 1.11 1.05 1.21 1.03
Synopsys Inc. 1.09 1.16 1.19 0.99 0.73
Current Ratio, Sector
Software & Services 1.41 1.66 1.90 1.83
Current Ratio, Industry
Information Technology 1.43 1.64 1.85 1.77

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
Current ratio = Current assets ÷ Current liabilities
= 57,517 ÷ 45,101 = 1.28

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. PayPal Holdings Inc. current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.

Quick Ratio

PayPal Holdings Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Cash and cash equivalents 7,776 5,197 4,794 7,349 7,575
Short-term investments 3,092 4,303 8,289 3,412 1,534
Accounts receivable, net 963 800 577 435 313
Loans and interest receivable, net of allowances 7,431 4,846 2,769 3,972 2,532
Funds receivable and customer accounts 36,357 36,141 33,418 22,527 20,062
Total quick assets 55,619 51,287 49,847 37,695 32,016
 
Current liabilities 45,101 43,029 38,447 26,919 25,904
Liquidity Ratio
Quick ratio1 1.23 1.19 1.30 1.40 1.24
Benchmarks
Quick Ratio, Competitors2
Accenture PLC 1.12 1.14 1.29 1.29
Adobe Inc. 1.00 1.11 1.34 0.70 1.06
Autodesk Inc. 0.62 0.77 0.78 0.62
Cadence Design Systems Inc. 1.02 1.47 1.60 1.51
CrowdStrike Holdings Inc. 1.68 2.50 2.18
International Business Machines Corp. 0.73 0.67 0.83 0.87
Intuit Inc. 1.17 1.65 2.04 1.44
Microsoft Corp. 1.57 1.90 2.33 2.35
Oracle Corp. 1.43 2.15 2.83 2.31
Palo Alto Networks Inc. 0.75 0.88 1.85 1.72
Salesforce Inc. 0.93 1.11 0.95 0.82
ServiceNow Inc. 1.06 1.01 1.16 0.98
Synopsys Inc. 0.85 0.89 0.94 0.73 0.61
Quick Ratio, Sector
Software & Services 1.24 1.50 1.74 1.68
Quick Ratio, Industry
Information Technology 1.15 1.38 1.59 1.54

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
Quick ratio = Total quick assets ÷ Current liabilities
= 55,619 ÷ 45,101 = 1.23

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. PayPal Holdings Inc. quick ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

Cash Ratio

PayPal Holdings Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Cash and cash equivalents 7,776 5,197 4,794 7,349 7,575
Short-term investments 3,092 4,303 8,289 3,412 1,534
Funds receivable and customer accounts 36,357 36,141 33,418 22,527 20,062
Total cash assets 47,225 45,641 46,501 33,288 29,171
 
Current liabilities 45,101 43,029 38,447 26,919 25,904
Liquidity Ratio
Cash ratio1 1.05 1.06 1.21 1.24 1.13
Benchmarks
Cash Ratio, Competitors2
Accenture PLC 0.45 0.52 0.67 0.55
Adobe Inc. 0.75 0.84 1.09 0.51 0.75
Autodesk Inc. 0.44 0.57 0.57 0.41
Cadence Design Systems Inc. 0.66 1.13 1.17 1.06
CrowdStrike Holdings Inc. 1.42 2.22 1.85
International Business Machines Corp. 0.28 0.22 0.36 0.24
Intuit Inc. 0.90 1.46 2.00 1.39
Microsoft Corp. 1.10 1.47 1.89 1.93
Oracle Corp. 1.12 1.93 2.50 2.03
Palo Alto Networks Inc. 0.44 0.57 1.39 1.37
Salesforce Inc. 0.48 0.67 0.54 0.39
ServiceNow Inc. 0.71 0.67 0.83 0.61
Synopsys Inc. 0.56 0.65 0.58 0.42 0.34
Cash Ratio, Sector
Software & Services 0.80 1.10 1.31 1.22
Cash Ratio, Industry
Information Technology 0.72 0.96 1.18 1.10

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 ratio = Total cash assets ÷ Current liabilities
= 47,225 ÷ 45,101 = 1.05

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. PayPal Holdings Inc. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022.