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 Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

PayPal Holdings Inc., solvency ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Debt Ratios
Debt to equity 0.53 0.42 0.45 0.29 0.13
Debt to equity (including operating lease liability) 0.57 0.45 0.49 0.32 0.13
Debt to capital 0.35 0.29 0.31 0.23 0.11
Debt to capital (including operating lease liability) 0.36 0.31 0.33 0.24 0.11
Debt to assets 0.14 0.12 0.13 0.10 0.05
Debt to assets (including operating lease liability) 0.15 0.13 0.14 0.11 0.05
Financial leverage 3.88 3.49 3.52 3.04 2.82
Coverage Ratios
Interest coverage 12.07 18.67 25.23 27.07 31.86
Fixed charge coverage 8.09 11.20 14.51 12.94 14.89

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. PayPal Holdings Inc. debt to equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. PayPal Holdings Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. PayPal Holdings Inc. debt to capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. PayPal Holdings Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. PayPal Holdings Inc. debt to assets ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. PayPal Holdings Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. PayPal Holdings Inc. financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. PayPal Holdings Inc. interest coverage ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. PayPal Holdings Inc. fixed charge coverage ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Debt to Equity

PayPal Holdings Inc., debt to equity 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)
Short-term debt 1,998
Current portion of long-term debt 418 999
Long-term debt, excluding current portion 10,417 8,049 8,939 4,965
Total debt 10,835 9,048 8,939 4,965 1,998
 
Total PayPal stockholders’ equity 20,274 21,727 20,019 16,885 15,386
Solvency Ratio
Debt to equity1 0.53 0.42 0.45 0.29 0.13
Benchmarks
Debt to Equity, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00
Adobe Inc. 0.29 0.28 0.31 0.39 0.44
Autodesk Inc. 3.09 1.70
Cadence Design Systems Inc. 0.27 0.13 0.14 0.16
CrowdStrike Holdings Inc. 0.72 0.85 0.00
International Business Machines Corp. 2.32 2.74 2.99 3.02
Intuit Inc. 0.42 0.21 0.66 0.12
Microsoft Corp. 0.39 0.50 0.62 0.77
Oracle Corp. 16.08 5.93 2.58
Palo Alto Networks Inc. 17.51 5.08 2.80 0.90
Salesforce Inc. 0.19 0.07 0.09 0.22
ServiceNow Inc. 0.30 0.43 0.58 0.33
Synopsys Inc. 0.00 0.02 0.03 0.03 0.13
Debt to Equity, Sector
Software & Services 0.72 0.84 0.96 1.06
Debt to Equity, Industry
Information Technology 0.67 0.76 0.87 0.87

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
Debt to equity = Total debt ÷ Total PayPal stockholders’ equity
= 10,835 ÷ 20,274 = 0.53

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. PayPal Holdings Inc. debt to equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Debt to Equity (including Operating Lease Liability)

PayPal Holdings Inc., debt to equity (including operating lease liability) 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)
Short-term debt 1,998
Current portion of long-term debt 418 999
Long-term debt, excluding current portion 10,417 8,049 8,939 4,965
Total debt 10,835 9,048 8,939 4,965 1,998
Current operating lease liabilities (included in Accrued expenses and other current liabilities) 151 142 144 104
Operating lease liabilities (included in Deferred tax liability and other long-term liabilities) 569 620 642 403
Total debt (including operating lease liability) 11,555 9,810 9,725 5,472 1,998
 
Total PayPal stockholders’ equity 20,274 21,727 20,019 16,885 15,386
Solvency Ratio
Debt to equity (including operating lease liability)1 0.57 0.45 0.49 0.32 0.13
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Accenture PLC 0.15 0.18 0.21 0.00
Adobe Inc. 0.33 0.32 0.35 0.39 0.44
Autodesk Inc. 3.60 2.18
Cadence Design Systems Inc. 0.34 0.18 0.20 0.22
CrowdStrike Holdings Inc. 0.76 0.89 0.00
International Business Machines Corp. 2.46 2.92 3.23 3.27
Intuit Inc. 0.46 0.25 0.71 0.12
Microsoft Corp. 0.47 0.58 0.69 0.84
Oracle Corp. 16.61 6.10 2.58
Palo Alto Networks Inc. 19.12 5.68 3.16 0.90
Salesforce Inc. 0.25 0.15 0.18 0.22
ServiceNow Inc. 0.44 0.60 0.75 0.53
Synopsys Inc. 0.12 0.13 0.14 0.03 0.13
Debt to Equity (including Operating Lease Liability), Sector
Software & Services 0.82 0.94 1.08 1.13
Debt to Equity (including Operating Lease Liability), Industry
Information Technology 0.73 0.83 0.94 0.90

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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total PayPal stockholders’ equity
= 11,555 ÷ 20,274 = 0.57

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. PayPal Holdings Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Debt to Capital

PayPal Holdings Inc., debt to capital 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)
Short-term debt 1,998
Current portion of long-term debt 418 999
Long-term debt, excluding current portion 10,417 8,049 8,939 4,965
Total debt 10,835 9,048 8,939 4,965 1,998
Total PayPal stockholders’ equity 20,274 21,727 20,019 16,885 15,386
Total capital 31,109 30,775 28,958 21,850 17,384
Solvency Ratio
Debt to capital1 0.35 0.29 0.31 0.23 0.11
Benchmarks
Debt to Capital, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00
Adobe Inc. 0.23 0.22 0.24 0.28 0.31
Autodesk Inc. 0.76 0.63 1.07 1.11
Cadence Design Systems Inc. 0.21 0.11 0.12 0.14
CrowdStrike Holdings Inc. 0.42 0.46 0.00
International Business Machines Corp. 0.70 0.73 0.75 0.75
Intuit Inc. 0.30 0.17 0.40 0.10
Microsoft Corp. 0.28 0.33 0.38 0.43
Oracle Corp. 1.09 0.94 0.86 0.72
Palo Alto Networks Inc. 0.95 0.84 0.74 0.47
Salesforce Inc. 0.16 0.06 0.08 0.18
ServiceNow Inc. 0.23 0.30 0.37 0.25
Synopsys Inc. 0.00 0.02 0.03 0.03 0.12
Debt to Capital, Sector
Software & Services 0.42 0.46 0.49 0.51
Debt to Capital, Industry
Information Technology 0.40 0.43 0.47 0.46

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
Debt to capital = Total debt ÷ Total capital
= 10,835 ÷ 31,109 = 0.35

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. PayPal Holdings Inc. debt to capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Debt to Capital (including Operating Lease Liability)

PayPal Holdings Inc., debt to capital (including operating lease liability) 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)
Short-term debt 1,998
Current portion of long-term debt 418 999
Long-term debt, excluding current portion 10,417 8,049 8,939 4,965
Total debt 10,835 9,048 8,939 4,965 1,998
Current operating lease liabilities (included in Accrued expenses and other current liabilities) 151 142 144 104
Operating lease liabilities (included in Deferred tax liability and other long-term liabilities) 569 620 642 403
Total debt (including operating lease liability) 11,555 9,810 9,725 5,472 1,998
Total PayPal stockholders’ equity 20,274 21,727 20,019 16,885 15,386
Total capital (including operating lease liability) 31,829 31,537 29,744 22,357 17,384
Solvency Ratio
Debt to capital (including operating lease liability)1 0.36 0.31 0.33 0.24 0.11
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Accenture PLC 0.13 0.15 0.17 0.00
Adobe Inc. 0.25 0.24 0.26 0.28 0.31
Autodesk Inc. 0.78 0.69 1.06 1.11
Cadence Design Systems Inc. 0.25 0.15 0.17 0.18
CrowdStrike Holdings Inc. 0.43 0.47 0.00
International Business Machines Corp. 0.71 0.74 0.76 0.77
Intuit Inc. 0.31 0.20 0.42 0.10
Microsoft Corp. 0.32 0.37 0.41 0.46
Oracle Corp. 1.08 0.94 0.86 0.72
Palo Alto Networks Inc. 0.95 0.85 0.76 0.47
Salesforce Inc. 0.20 0.13 0.16 0.18
ServiceNow Inc. 0.31 0.37 0.43 0.35
Synopsys Inc. 0.11 0.11 0.12 0.03 0.12
Debt to Capital (including Operating Lease Liability), Sector
Software & Services 0.45 0.49 0.52 0.53
Debt to Capital (including Operating Lease Liability), Industry
Information Technology 0.42 0.45 0.49 0.47

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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 11,555 ÷ 31,829 = 0.36

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. PayPal Holdings Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Debt to Assets

PayPal Holdings Inc., debt to assets 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)
Short-term debt 1,998
Current portion of long-term debt 418 999
Long-term debt, excluding current portion 10,417 8,049 8,939 4,965
Total debt 10,835 9,048 8,939 4,965 1,998
 
Total assets 78,717 75,803 70,379 51,333 43,332
Solvency Ratio
Debt to assets1 0.14 0.12 0.13 0.10 0.05
Benchmarks
Debt to Assets, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00
Adobe Inc. 0.15 0.15 0.17 0.20 0.22
Autodesk Inc. 0.31 0.22 0.34 0.44
Cadence Design Systems Inc. 0.15 0.08 0.09 0.10
CrowdStrike Holdings Inc. 0.20 0.27 0.00
International Business Machines Corp. 0.40 0.39 0.39 0.41
Intuit Inc. 0.25 0.13 0.31 0.07
Microsoft Corp. 0.18 0.21 0.24 0.27
Oracle Corp. 0.69 0.64 0.62 0.52
Palo Alto Networks Inc. 0.30 0.31 0.34 0.22
Salesforce Inc. 0.12 0.04 0.06 0.11
ServiceNow Inc. 0.11 0.15 0.19 0.12
Synopsys Inc. 0.00 0.01 0.02 0.02 0.08
Debt to Assets, Sector
Software & Services 0.26 0.28 0.30 0.32
Debt to Assets, Industry
Information Technology 0.26 0.28 0.30 0.30

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
Debt to assets = Total debt ÷ Total assets
= 10,835 ÷ 78,717 = 0.14

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. PayPal Holdings Inc. debt to assets ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Debt to Assets (including Operating Lease Liability)

PayPal Holdings Inc., debt to assets (including operating lease liability) 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)
Short-term debt 1,998
Current portion of long-term debt 418 999
Long-term debt, excluding current portion 10,417 8,049 8,939 4,965
Total debt 10,835 9,048 8,939 4,965 1,998
Current operating lease liabilities (included in Accrued expenses and other current liabilities) 151 142 144 104
Operating lease liabilities (included in Deferred tax liability and other long-term liabilities) 569 620 642 403
Total debt (including operating lease liability) 11,555 9,810 9,725 5,472 1,998
 
Total assets 78,717 75,803 70,379 51,333 43,332
Solvency Ratio
Debt to assets (including operating lease liability)1 0.15 0.13 0.14 0.11 0.05
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Accenture PLC 0.07 0.08 0.09 0.00
Adobe Inc. 0.17 0.17 0.19 0.20 0.22
Autodesk Inc. 0.36 0.29 0.41 0.44
Cadence Design Systems Inc. 0.18 0.11 0.13 0.14
CrowdStrike Holdings Inc. 0.21 0.29 0.00
International Business Machines Corp. 0.42 0.42 0.43 0.45
Intuit Inc. 0.27 0.16 0.33 0.07
Microsoft Corp. 0.21 0.25 0.27 0.30
Oracle Corp. 0.73 0.66 0.64 0.52
Palo Alto Networks Inc. 0.33 0.35 0.38 0.22
Salesforce Inc. 0.15 0.10 0.11 0.11
ServiceNow Inc. 0.17 0.21 0.24 0.19
Synopsys Inc. 0.07 0.08 0.08 0.02 0.08
Debt to Assets (including Operating Lease Liability), Sector
Software & Services 0.30 0.32 0.34 0.34
Debt to Assets (including Operating Lease Liability), Industry
Information Technology 0.29 0.31 0.33 0.31

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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 11,555 ÷ 78,717 = 0.15

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. PayPal Holdings Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Financial Leverage

PayPal Holdings Inc., financial leverage 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)
Total assets 78,717 75,803 70,379 51,333 43,332
Total PayPal stockholders’ equity 20,274 21,727 20,019 16,885 15,386
Solvency Ratio
Financial leverage1 3.88 3.49 3.52 3.04 2.82
Benchmarks
Financial Leverage, Competitors2
Accenture PLC 2.14 2.21 2.18 2.07
Adobe Inc. 1.93 1.84 1.83 1.97 2.00
Autodesk Inc. 10.14 7.54
Cadence Design Systems Inc. 1.87 1.60 1.58 1.60
CrowdStrike Holdings Inc. 3.53 3.14 1.89
International Business Machines Corp. 5.80 6.98 7.57 7.30
Intuit Inc. 1.69 1.57 2.14 1.68
Microsoft Corp. 2.19 2.35 2.55 2.80
Oracle Corp. 25.03 9.56 4.99
Palo Alto Networks Inc. 58.35 16.14 8.23 4.16
Salesforce Inc. 1.64 1.60 1.63 1.97
ServiceNow Inc. 2.64 2.92 3.07 2.83
Synopsys Inc. 1.71 1.65 1.64 1.57 1.77
Financial Leverage, Sector
Software & Services 2.76 2.98 3.18 3.33
Financial Leverage, Industry
Information Technology 2.56 2.71 2.90 2.86

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
Financial leverage = Total assets ÷ Total PayPal stockholders’ equity
= 78,717 ÷ 20,274 = 3.88

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. PayPal Holdings Inc. financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Interest Coverage

PayPal Holdings Inc., interest coverage 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)
Net income 2,419 4,169 4,202 2,459 2,057
Add: Income tax expense 947 (70) 863 539 319
Add: Interest expense 304 232 209 115 77
Earnings before interest and tax (EBIT) 3,670 4,331 5,274 3,113 2,453
Solvency Ratio
Interest coverage1 12.07 18.67 25.23 27.07 31.86
Benchmarks
Interest Coverage, Competitors2
Accenture PLC 195.34 131.46 205.84 273.26
Adobe Inc. 54.64 51.49 37.00 21.38 32.31
Autodesk Inc. 9.69 11.70 6.46 0.18
Cadence Design Systems Inc. 46.58 46.26 31.50 26.44
CrowdStrike Holdings Inc. -5.34 -55.36 -315.25
International Business Machines Corp. 1.97 5.20 4.62 8.58
Intuit Inc. 32.38 89.14 158.00 126.40
Microsoft Corp. 41.58 31.31 21.47 17.27
Oracle Corp. 3.84 6.28 7.13 6.97
Palo Alto Networks Inc. -6.56 -1.85 -1.61 0.11
Salesforce Inc. 8.09 24.28 7.42 8.80
ServiceNow Inc. 15.78 9.89 5.56 3.02
Synopsys Inc. 657.96 240.38 125.16 47.79 24.29
Interest Coverage, Sector
Software & Services 18.23 17.67 14.41 13.00
Interest Coverage, Industry
Information Technology 24.65 23.05 16.83 15.85

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
Interest coverage = EBIT ÷ Interest expense
= 3,670 ÷ 304 = 12.07

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. PayPal Holdings Inc. interest coverage ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Fixed Charge Coverage

PayPal Holdings Inc., fixed charge coverage 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)
Net income 2,419 4,169 4,202 2,459 2,057
Add: Income tax expense 947 (70) 863 539 319
Add: Interest expense 304 232 209 115 77
Earnings before interest and tax (EBIT) 3,670 4,331 5,274 3,113 2,453
Add: Operating lease expense 171 170 166 136 94
Earnings before fixed charges and tax 3,841 4,501 5,440 3,249 2,547
 
Interest expense 304 232 209 115 77
Operating lease expense 171 170 166 136 94
Fixed charges 475 402 375 251 171
Solvency Ratio
Fixed charge coverage1 8.09 11.20 14.51 12.94 14.89
Benchmarks
Fixed Charge Coverage, Competitors2
Accenture PLC 12.25 10.41 9.66 10.07
Adobe Inc. 26.79 25.59 18.77 10.78 13.34
Autodesk Inc. 4.46 4.58 3.09 0.62
Cadence Design Systems Inc. 15.50 13.77 11.46 9.95
CrowdStrike Holdings Inc. -3.39 -6.40 -12.01
International Business Machines Corp. 1.52 3.13 2.62 4.41
Intuit Inc. 14.67 25.58 27.48 34.00
Microsoft Corp. 19.50 16.90 12.44 10.94
Oracle Corp. 3.22 5.17 5.68 5.50
Palo Alto Networks Inc. -1.18 -1.09 -0.52 0.41
Salesforce Inc. 2.18 2.94 1.69 3.00
ServiceNow Inc. 3.87 2.95 2.29 1.69
Synopsys Inc. 12.91 9.29 7.46 6.30 4.98
Fixed Charge Coverage, Sector
Software & Services 9.53 9.38 7.64 7.52
Fixed Charge Coverage, Industry
Information Technology 14.17 13.49 10.22 10.45

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,841 ÷ 475 = 8.09

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. PayPal Holdings Inc. fixed charge coverage ratio deteriorated from 2020 to 2021 and from 2021 to 2022.