Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable	126)	197)	252)	232)	281)
Short-term debt	—)	—)	—)	—)	1,998)
Funds payable and amounts due to customers	40,107)	38,841)	35,418)	24,527)	21,562)
Current portion of long-term debt	418)	999)	—)	—)	—)
Accrued expenses and other current liabilities	3,637)	2,756)	2,648)	2,087)	2,002)
Income taxes payable	813)	236)	129)	73)	61)
Current liabilities	45,101)	43,029)	38,447)	26,919)	25,904)
Deferred tax liability and other long-term liabilities	2,925)	2,998)	2,930)	2,520)	2,042)
Long-term debt, excluding current portion	10,417)	8,049)	8,939)	4,965)	—)
Non-current liabilities	13,342)	11,047)	11,869)	7,485)	2,042)
Total liabilities	58,443)	54,076)	50,316)	34,404)	27,946)
Common stock, $0.0001 par value	—)	—)	—)	—)	—)
Preferred stock, $0.0001 par value; unissued	—)	—)	—)	—)	—)
Treasury stock at cost	(16,079)	(11,880)	(8,507)	(6,872)	(5,511)
Additional paid-in-capital	18,327)	17,208)	16,644)	15,588)	14,939)
Retained earnings	18,954)	16,535)	12,366)	8,342)	5,880)
Accumulated other comprehensive income (loss)	(928)	(136)	(484)	(173)	78)
Total PayPal stockholders’ equity	20,274)	21,727)	20,019)	16,885)	15,386)
Noncontrolling interest	—)	—)	44)	44)	—)
Total equity	20,274)	21,727)	20,063)	16,929)	15,386)
Total liabilities and equity	78,717)	75,803)	70,379)	51,333)	43,332)

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).

Liabilities Analysis

Accounts payable decreased steadily from 281 million US dollars in 2018 to 126 million US dollars in 2022, indicating a reduction in short-term obligations to suppliers or vendors. Funds payable and amounts due to customers increased consistently, from 21,562 million US dollars in 2018 to 40,107 million US dollars in 2022, showing expansion in customer-related liabilities.

Accrued expenses and other current liabilities showed an upward trend, rising from 2,002 million US dollars in 2018 to 3,637 million US dollars in 2022, evidencing growing operational expenses outstanding. Income taxes payable rose sharply, from 61 million US dollars in 2018 to 813 million US dollars in 2022, reflecting higher tax obligations in recent years.

Current liabilities grew from 25,904 million US dollars in 2018 to 45,101 million US dollars in 2022, suggesting an overall increase in short-term liabilities. Conversely, the current portion of long-term debt appeared only in 2021 and 2022 with values of 999 million US dollars and 418 million US dollars respectively, implying partial debt repayment or reclassification.

Long-term non-current liabilities also expanded from 2,042 million US dollars in 2018 to 13,342 million US dollars in 2022. The long-term debt excluding the current portion showed growth from 4,965 million US dollars in 2019 to 10,417 million US dollars in 2022, indicating increased long-term borrowing.

Total liabilities rose markedly from 27,946 million US dollars in 2018 to 58,443 million US dollars in 2022, nearly doubling, which reflects both increased operational scale and higher financial leverage.

Equity Position

Treasury stock at cost increased negatively from -5,511 million US dollars in 2018 to -16,079 million US dollars in 2022, indicating significant repurchases or treasury stock holdings over time.

Additional paid-in capital exhibited a steady increase from 14,939 million US dollars in 2018 to 18,327 million US dollars in 2022, suggesting continued equity funding and possibly share issuance above par value.

Retained earnings grew robustly, from 5,880 million US dollars in 2018 to 18,954 million US dollars in 2022, signaling consistent profitability and earnings reinvestment.

Accumulated other comprehensive income (loss) fluctuated negatively, moving from a positive 78 million US dollars in 2018 to a negative 928 million US dollars by 2022, reflecting unfavorable cumulative effects from items such as foreign currency translation adjustments or unrealized losses on investments.

Total PayPal stockholders’ equity increased from 15,386 million US dollars in 2018, reaching a peak of 21,727 million US dollars in 2021 before declining to 20,274 million US dollars in 2022, which may be related to the rise in accumulated comprehensive losses and treasury stock impact.

Overall Financial Structure

Total liabilities and equity rose consistently from 43,332 million US dollars in 2018 to 78,717 million US dollars in 2022, indicating overall balance sheet growth. The company's growth in both liabilities and equity suggests expanding operations alongside increasing financing activities and shareholder investments.

The trend shows increasing leverage, with liabilities more than doubling and equity growing, albeit at a slower pace, which could imply higher financial risk but also greater capacity for operational expansion.

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PayPal Holdings Inc. (NASDAQ:PYPL)

Balance Sheet: Liabilities and Stockholders’ Equity