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.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

PayPal Holdings Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Accounts payable 0.16 0.26 0.36 0.45 0.65
Short-term debt 0.00 0.00 0.00 0.00 4.61
Funds payable and amounts due to customers 50.95 51.24 50.32 47.78 49.76
Current portion of long-term debt 0.53 1.32 0.00 0.00 0.00
Accrued expenses and other current liabilities 4.62 3.64 3.76 4.07 4.62
Income taxes payable 1.03 0.31 0.18 0.14 0.14
Current liabilities 57.30% 56.76% 54.63% 52.44% 59.78%
Deferred tax liability and other long-term liabilities 3.72 3.95 4.16 4.91 4.71
Long-term debt, excluding current portion 13.23 10.62 12.70 9.67 0.00
Non-current liabilities 16.95% 14.57% 16.86% 14.58% 4.71%
Total liabilities 74.24% 71.34% 71.49% 67.02% 64.49%
Common stock, $0.0001 par value 0.00 0.00 0.00 0.00 0.00
Preferred stock, $0.0001 par value; unissued 0.00 0.00 0.00 0.00 0.00
Treasury stock at cost -20.43 -15.67 -12.09 -13.39 -12.72
Additional paid-in-capital 23.28 22.70 23.65 30.37 34.48
Retained earnings 24.08 21.81 17.57 16.25 13.57
Accumulated other comprehensive income (loss) -1.18 -0.18 -0.69 -0.34 0.18
Total PayPal stockholders’ equity 25.76% 28.66% 28.44% 32.89% 35.51%
Noncontrolling interest 0.00 0.00 0.06 0.09 0.00
Total equity 25.76% 28.66% 28.51% 32.98% 35.51%
Total liabilities and equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The capital structure exhibits a consistent shift toward increased leverage from 2018 to 2022. Total liabilities rose from 64.49% to 74.24% of total liabilities and equity, while total equity concurrently declined from 35.51% to 25.76%.

Liability Composition and Trends
Funds payable and amounts due to customers represent the most significant component of the balance sheet, consistently accounting for approximately 50% of total liabilities and equity throughout the period. This stability indicates that customer-funded balances are the primary driver of the company's liability profile.
A notable increase in long-term debt is observed, rising from no reported value in 2018 to 13.23% in 2022. This expansion in long-term borrowing contributed significantly to the rise in non-current liabilities, which grew from 4.71% to 16.95% over the same period.
Current liabilities remained relatively stable, though a downward trend in accounts payable is evident, decreasing from 0.65% in 2018 to 0.16% in 2022.
Equity Dynamics
A strong upward trend in retained earnings is observed, increasing from 13.57% to 24.08%, reflecting a steady accumulation of profit within the equity base.
The proportion of treasury stock at cost became increasingly negative, moving from -12.72% in 2018 to -20.43% in 2022. This indicates a substantial allocation of capital toward share repurchases, which served as a primary driver for the overall reduction in total equity.
Additional paid-in-capital showed a steady decline from 34.48% to 23.28%, suggesting that this component is becoming a smaller portion of the total funding mix as retained earnings grow and treasury stock increases.

The overall financial trajectory indicates a strategic move toward a more leveraged balance sheet, characterized by an increase in long-term debt and aggressive share buybacks, offset by organic growth in retained earnings.

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