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 Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

PayPal Holdings Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Turnover Ratios
Receivables turnover 28.58 31.71 37.18 40.86 49.36
Payables turnover 218.40 128.79 85.13 76.60 54.99
Working capital turnover 2.22 2.66 1.71 1.54 2.19
Average No. Days
Average receivable collection period 13 12 10 9 7
Average payables payment period 2 3 4 5 7

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).

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. PayPal Holdings Inc. receivables turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. PayPal Holdings Inc. payables turnover ratio increased from 2020 to 2021 and from 2021 to 2022.
Working capital turnover An activity ratio calculated as revenue divided by working capital. PayPal Holdings Inc. working capital turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. PayPal Holdings Inc. number of days of receivables outstanding deteriorated from 2020 to 2021 and from 2021 to 2022.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. PayPal Holdings Inc. number of days of payables outstanding decreased from 2020 to 2021 and from 2021 to 2022.

Receivables Turnover

PayPal Holdings Inc., receivables turnover 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 revenues 27,518 25,371 21,454 17,772 15,451
Accounts receivable, net 963 800 577 435 313
Short-term Activity Ratio
Receivables turnover1 28.58 31.71 37.18 40.86 49.36
Benchmarks
Receivables Turnover, Competitors2
Accenture PLC 5.87 5.74 6.16 5.79
Adobe Inc. 8.53 8.41 9.20 7.28 6.86
Autodesk Inc. 6.13 5.89 5.02 5.42
Cadence Design Systems Inc. 7.32 8.85 7.93 7.67
CrowdStrike Holdings Inc. 3.94 3.66 2.92
International Business Machines Corp. 9.25 8.49 10.32 9.80
Intuit Inc. 28.53 24.64 51.54 77.98
Microsoft Corp. 4.48 4.42 4.47 4.26
Oracle Corp. 7.13 7.48 7.04 7.69
Palo Alto Networks Inc. 2.57 3.43 3.29 4.98
Salesforce Inc. 2.72 2.73 2.77 2.70
ServiceNow Inc. 4.20 4.24 4.48 4.14
Synopsys Inc. 6.38 7.40 4.72 6.07 5.63
Receivables Turnover, Sector
Software & Services 5.21 5.24 5.59 5.59
Receivables Turnover, Industry
Information Technology 7.42 7.55 8.00 7.59

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
Receivables turnover = Net revenues ÷ Accounts receivable, net
= 27,518 ÷ 963 = 28.58

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. PayPal Holdings Inc. receivables turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Payables Turnover

PayPal Holdings Inc., payables turnover 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 revenues 27,518 25,371 21,454 17,772 15,451
Accounts payable 126 197 252 232 281
Short-term Activity Ratio
Payables turnover1 218.40 128.79 85.13 76.60 54.99
Benchmarks
Payables Turnover, Competitors2
Accenture PLC 16.37 15.03 22.48 18.16
Adobe Inc. 5.71 5.98 5.63 7.98 6.42
Autodesk Inc. 3.46 2.75 3.88 2.81
Cadence Design Systems Inc. 7.89
CrowdStrike Holdings Inc. 8.05 19.03 105.30
International Business Machines Corp. 6.87 6.54 7.75 8.30
Intuit Inc. 3.26 2.70 4.52 4.26
Microsoft Corp. 3.30 3.44 3.68 4.57
Oracle Corp. 6.74 10.54 12.46 13.78
Palo Alto Networks Inc. 13.43 22.41 15.72 11.03
Salesforce Inc.
ServiceNow Inc. 5.74 15.20 28.83 15.04
Synopsys Inc. 28.30 31.44 26.49 38.00 8.65
Payables Turnover, Sector
Software & Services 5.52 5.71 6.58 7.58
Payables Turnover, Industry
Information Technology 4.54 4.99 5.35 5.27

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
Payables turnover = Net revenues ÷ Accounts payable
= 27,518 ÷ 126 = 218.40

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. PayPal Holdings Inc. payables turnover ratio increased from 2020 to 2021 and from 2021 to 2022.

Working Capital Turnover

PayPal Holdings Inc., working capital turnover 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
Less: Current liabilities 45,101 43,029 38,447 26,919 25,904
Working capital 12,416 9,545 12,548 11,576 7,059
 
Net revenues 27,518 25,371 21,454 17,772 15,451
Short-term Activity Ratio
Working capital turnover1 2.22 2.66 1.71 1.54 2.19
Benchmarks
Working Capital Turnover, Competitors2
Accenture PLC 15.07 12.77 8.71 9.85
Adobe Inc. 20.28 9.09 4.89 16.24
Autodesk Inc.
Cadence Design Systems Inc. 9.92 4.01 3.94 4.70
CrowdStrike Holdings Inc. 1.25 0.61 0.71
International Business Machines Corp. 107.30
Intuit Inc. 8.98 3.85 1.73 4.17
Microsoft Corp. 2.66 1.76 1.30 1.19
Oracle Corp. 3.50 1.29 1.12 1.42
Palo Alto Networks Inc. 1.40 1.80
Salesforce Inc. 24.95 5.11 15.29
ServiceNow Inc. 11.16 21.76 5.76 46.69
Synopsys Inc. 21.34 10.65 9.00
Working Capital Turnover, Sector
Software & Services 4.91 2.81 2.20 2.37
Working Capital Turnover, Industry
Information Technology 5.71 3.86 2.86 3.06

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
Working capital turnover = Net revenues ÷ Working capital
= 27,518 ÷ 12,416 = 2.22

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. PayPal Holdings Inc. working capital turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Average Receivable Collection Period

PayPal Holdings Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Receivables turnover 28.58 31.71 37.18 40.86 49.36
Short-term Activity Ratio (no. days)
Average receivable collection period1 13 12 10 9 7
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Accenture PLC 62 64 59 63
Adobe Inc. 43 43 40 50 53
Autodesk Inc. 60 62 73 67
Cadence Design Systems Inc. 50 41 46 48
CrowdStrike Holdings Inc. 93 100 125
International Business Machines Corp. 39 43 35 37
Intuit Inc. 13 15 7 5
Microsoft Corp. 81 83 82 86
Oracle Corp. 51 49 52 47
Palo Alto Networks Inc. 142 106 111 73
Salesforce Inc. 134 134 132 135
ServiceNow Inc. 87 86 82 88
Synopsys Inc. 57 49 77 60 65
Average Receivable Collection Period, Sector
Software & Services 70 70 65 65
Average Receivable Collection Period, Industry
Information Technology 49 48 46 48

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 28.58 = 13

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. PayPal Holdings Inc. number of days of receivables outstanding deteriorated from 2020 to 2021 and from 2021 to 2022.

Average Payables Payment Period

PayPal Holdings Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Payables turnover 218.40 128.79 85.13 76.60 54.99
Short-term Activity Ratio (no. days)
Average payables payment period1 2 3 4 5 7
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Accenture PLC 22 24 16 20
Adobe Inc. 64 61 65 46 57
Autodesk Inc. 105 133 94 130
Cadence Design Systems Inc. 46
CrowdStrike Holdings Inc. 45 19 3
International Business Machines Corp. 53 56 47 44
Intuit Inc. 112 135 81 86
Microsoft Corp. 111 106 99 80
Oracle Corp. 54 35 29 26
Palo Alto Networks Inc. 27 16 23 33
Salesforce Inc.
ServiceNow Inc. 64 24 13 24
Synopsys Inc. 13 12 14 10 42
Average Payables Payment Period, Sector
Software & Services 66 64 55 48
Average Payables Payment Period, Industry
Information Technology 80 73 68 69

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 218.40 = 2

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. PayPal Holdings Inc. number of days of payables outstanding decreased from 2020 to 2021 and from 2021 to 2022.