Name: PayPal Holdings Inc. (NASDAQ:PYPL) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

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.

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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).

The balance sheet exhibits a significant expansion in total liabilities and equity, growing from 43.3 billion USD in 2018 to 78.7 billion USD in 2022. This growth is primarily driven by a substantial increase in total liabilities, which more than doubled over the five-year period, moving from 27.9 billion USD to 58.4 billion USD.

Liability Structure and Trends: A primary driver of liability growth is the increase in funds payable and amounts due to customers, which rose from 21.6 billion USD in 2018 to 40.1 billion USD in 2022. This upward trajectory suggests an increase in the volume of transactions and customer funds managed. Additionally, a notable shift in long-term financing is observed; the company transitioned from having no reported long-term debt in 2018 to 10.4 billion USD in long-term debt by 2022, indicating a strategic move toward increased leverage.
Stockholders' Equity and Capital Allocation: Total equity experienced moderate growth, rising from 15.4 billion USD in 2018 to a peak of 21.7 billion USD in 2021, before declining to 20.3 billion USD in 2022. The growth in equity was heavily supported by retained earnings, which increased from 5.9 billion USD to 19.0 billion USD over the period, reflecting strong profitability. Conversely, an aggressive share buyback strategy is evident, with treasury stock at cost increasing from 5.5 billion USD in 2018 to 16.1 billion USD in 2022, which served to offset the gains in retained earnings.
Current and Non-Current Obligation Analysis: Current liabilities grew from 25.9 billion USD in 2018 to 45.1 billion USD in 2022, predominantly influenced by the increase in customer payables. Non-current liabilities saw a more pronounced proportional increase, climbing from 2.0 billion USD to 13.3 billion USD. This trend is almost entirely attributable to the introduction and subsequent growth of long-term debt, which has fundamentally altered the company's solvency profile.
Taxation and Other Liabilities: Income taxes payable showed a sharp increase toward the end of the period, rising from 236 million USD in 2021 to 813 million USD in 2022. Meanwhile, accounts payable showed a consistent downward trend, decreasing from 281 million USD in 2018 to 126 million USD in 2022, suggesting more efficient management of short-term vendor obligations or a shift in payment terms.

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