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 Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

PayPal Holdings Inc., profitability ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Return on Sales
Operating profit margin 13.94% 16.80% 15.33% 15.30% 14.20%
Net profit margin 8.79% 16.43% 19.59% 13.84% 13.31%
Return on Investment
Return on equity (ROE) 11.93% 19.19% 20.99% 14.56% 13.37%
Return on assets (ROA) 3.07% 5.50% 5.97% 4.79% 4.75%

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).

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. PayPal Holdings Inc. operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. PayPal Holdings Inc. net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. PayPal Holdings Inc. ROE deteriorated from 2020 to 2021 and from 2021 to 2022.
ROA A profitability ratio calculated as net income divided by total assets. PayPal Holdings Inc. ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

Operating Profit Margin

PayPal Holdings Inc., operating profit margin 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)
Operating income 3,837 4,262 3,289 2,719 2,194
Net revenues 27,518 25,371 21,454 17,772 15,451
Profitability Ratio
Operating profit margin1 13.94% 16.80% 15.33% 15.30% 14.20%
Benchmarks
Operating Profit Margin, Competitors2
Accenture PLC 15.21% 15.08% 14.69% 14.59%
Adobe Inc. 34.64% 36.76% 32.93% 29.25% 31.45%
Autodesk Inc. 14.08% 16.60% 10.48% -0.97%
Cadence Design Systems Inc. 30.15% 26.07% 24.06% 21.05%
CrowdStrike Holdings Inc. -9.82% -10.58% -30.34%
International Business Machines Corp. 13.50% 11.97% 9.22% 13.67%
Intuit Inc. 20.20% 25.95% 28.34% 27.33%
Microsoft Corp. 42.06% 41.59% 37.03% 34.14%
Oracle Corp. 25.74% 37.58% 35.57% 34.26%
Palo Alto Networks Inc. -3.43% -7.15% -5.25% -1.87%
Salesforce Inc. 2.07% 2.14% 1.74% 4.03%
ServiceNow Inc. 4.90% 4.36% 4.40% 1.22%
Synopsys Inc. 22.87% 17.48% 16.83% 15.48% 11.54%
Operating Profit Margin, Sector
Software & Services 27.74% 28.66% 24.84% 24.12%
Operating Profit Margin, Industry
Information Technology 28.31% 28.72% 24.93% 25.33%

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
Operating profit margin = 100 × Operating income ÷ Net revenues
= 100 × 3,837 ÷ 27,518 = 13.94%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. PayPal Holdings Inc. operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Net Profit Margin

PayPal Holdings Inc., net profit margin 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
Net revenues 27,518 25,371 21,454 17,772 15,451
Profitability Ratio
Net profit margin1 8.79% 16.43% 19.59% 13.84% 13.31%
Benchmarks
Net Profit Margin, Competitors2
Accenture PLC 11.17% 11.69% 11.52% 11.06%
Adobe Inc. 27.01% 30.55% 40.88% 26.42% 28.69%
Autodesk Inc. 11.33% 31.88% 6.55% -3.14%
Cadence Design Systems Inc. 23.84% 23.29% 22.02% 42.33%
CrowdStrike Holdings Inc. -16.18% -10.59% -29.45%
International Business Machines Corp. 2.71% 10.01% 7.59% 12.22%
Intuit Inc. 16.23% 21.41% 23.78% 22.95%
Microsoft Corp. 36.69% 36.45% 30.96% 31.18%
Oracle Corp. 15.83% 33.96% 25.94% 28.05%
Palo Alto Networks Inc. -4.85% -11.72% -7.83% -2.82%
Salesforce Inc. 5.45% 19.16% 0.74% 8.36%
ServiceNow Inc. 4.49% 3.90% 2.62% 18.11%
Synopsys Inc. 19.38% 18.02% 18.03% 15.84% 13.86%
Net Profit Margin, Sector
Software & Services 22.02% 25.95% 20.66% 21.76%
Net Profit Margin, Industry
Information Technology 23.93% 25.58% 21.38% 22.17%

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 profit margin = 100 × Net income ÷ Net revenues
= 100 × 2,419 ÷ 27,518 = 8.79%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. PayPal Holdings Inc. net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Return on Equity (ROE)

PayPal Holdings Inc., ROE 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
Total PayPal stockholders’ equity 20,274 21,727 20,019 16,885 15,386
Profitability Ratio
ROE1 11.93% 19.19% 20.99% 14.56% 13.37%
Benchmarks
ROE, Competitors2
Accenture PLC 31.11% 30.25% 30.05% 33.17%
Adobe Inc. 33.85% 32.59% 39.66% 28.03% 27.67%
Autodesk Inc. 58.53% 125.14%
Cadence Design Systems Inc. 30.93% 25.39% 23.69% 47.03%
CrowdStrike Holdings Inc. -22.89% -10.64% -19.10%
International Business Machines Corp. 7.47% 30.38% 27.14% 45.25%
Intuit Inc. 12.57% 20.89% 35.76% 41.53%
Microsoft Corp. 43.68% 43.15% 37.43% 38.35%
Oracle Corp. 262.43% 83.94% 50.87%
Palo Alto Networks Inc. -127.14% -78.63% -24.23% -5.16%
Salesforce Inc. 2.48% 9.81% 0.37% 7.11%
ServiceNow Inc. 6.46% 6.22% 4.18% 29.45%
Synopsys Inc. 17.85% 14.31% 13.54% 13.04% 12.43%
ROE, Sector
Software & Services 31.91% 37.56% 31.66% 36.26%
ROE, Industry
Information Technology 38.36% 42.36% 35.12% 36.53%

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
ROE = 100 × Net income ÷ Total PayPal stockholders’ equity
= 100 × 2,419 ÷ 20,274 = 11.93%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. PayPal Holdings Inc. ROE deteriorated from 2020 to 2021 and from 2021 to 2022.

Return on Assets (ROA)

PayPal Holdings Inc., ROA 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
Total assets 78,717 75,803 70,379 51,333 43,332
Profitability Ratio
ROA1 3.07% 5.50% 5.97% 4.79% 4.75%
Benchmarks
ROA, Competitors2
Accenture PLC 14.55% 13.68% 13.78% 16.04%
Adobe Inc. 17.51% 17.70% 21.66% 14.22% 13.80%
Autodesk Inc. 5.77% 16.60% 3.47% -1.71%
Cadence Design Systems Inc. 16.53% 15.87% 14.95% 29.46%
CrowdStrike Holdings Inc. -6.49% -3.39% -10.09%
International Business Machines Corp. 1.29% 4.35% 3.58% 6.20%
Intuit Inc. 7.45% 13.29% 16.70% 24.78%
Microsoft Corp. 19.94% 18.36% 14.70% 13.69%
Oracle Corp. 6.15% 10.48% 8.78% 10.20%
Palo Alto Networks Inc. -2.18% -4.87% -2.95% -1.24%
Salesforce Inc. 1.52% 6.14% 0.23% 3.61%
ServiceNow Inc. 2.44% 2.13% 1.36% 10.41%
Synopsys Inc. 10.45% 8.66% 8.27% 8.31% 7.04%
ROA, Sector
Software & Services 11.56% 12.60% 9.97% 10.89%
ROA, Industry
Information Technology 14.99% 15.62% 12.12% 12.78%

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
ROA = 100 × Net income ÷ Total assets
= 100 × 2,419 ÷ 78,717 = 3.07%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. PayPal Holdings Inc. ROA deteriorated from 2020 to 2021 and from 2021 to 2022.