Stock Analysis on Net
Stock Analysis on Net

PayPal Holdings Inc. (NASDAQ:PYPL)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 9, 2023.

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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PayPal Holdings Inc., consolidated cash flow statement

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income
Transaction and credit losses
Depreciation and amortization
Stock-based compensation
Deferred income taxes
Cost basis adjustments to loans and interest receivable held for sale
Net (gains) losses on strategic investments
Other
Accounts receivable
Changes in loans and interest receivable held for sale, net
Transaction loss allowance for cash losses, net
Funds receivable
Other current assets and non-current assets
Accounts payable
Funds payable and amounts due to customers
Income taxes payable
Other current liabilities and non-current liabilities
Changes in assets and liabilities
Adjustments to reconcile net income to net cash provided by operating activities
Net cash provided by operating activities
Purchases of property and equipment
Proceeds from sales of property and equipment
Purchases and originations of loans receivable
Principal repayment of loans receivable
Purchases of investments
Maturities and sales of investments
Acquisitions, net of cash and restricted cash acquired
Funds receivable
Collateral posted related to derivative instruments, net
Other investing activities
Net cash (used in) provided by investing activities
Proceeds from issuance of common stock
Purchases of treasury stock
Tax withholdings related to net share settlements of equity awards
Borrowings under financing arrangements
Repayments under financing arrangements
Funds payable and amounts due to customers
Collateral received related to derivative instruments, net
Other financing activities
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
Net change in cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash at beginning of period
Cash, cash equivalents, and restricted cash at end of period

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).

Net Income
Net income demonstrated a rising trend from 2018 through 2020, reaching a peak of $4,202 million in 2020 before slightly declining in 2021 to $4,169 million. In 2022, net income fell more significantly to $2,419 million, reflecting a notable decrease compared to prior years.
Transaction and Credit Losses
Transaction and credit losses fluctuated over the period, increasing from $1,274 million in 2018 to $1,741 million in 2020, then dropping sharply to $1,060 million in 2021 before rising again to $1,572 million in 2022. These movements indicate variability in credit risk exposure and loss severity.
Depreciation and Amortization
Depreciation and amortization expenses rose steadily each year, from $776 million in 2018 to $1,317 million in 2022, suggesting ongoing investment in tangible and intangible assets and possibly acquisitions or capital expenditures contributing to amortizable assets.
Stock-Based Compensation
Stock-based compensation increased from $853 million in 2018 to $1,376 million in 2020 and remained stable through 2021 before slightly decreasing to $1,261 million in 2022, indicating consistent usage of equity incentives with minor adjustments in the latest year.
Deferred Income Taxes
Deferred income taxes showed a fluctuating pattern, negative in 2018 and 2019, becoming positive in 2020, then turning more negative in subsequent years, reaching -$811 million in 2022. This volatility may reflect changes in tax positions or timing differences.
Net Gains/Losses on Strategic Investments
There were substantial net gains recorded in 2020 amounting to -$1,914 million (a gain), but this reversed sharply in 2022 with a net loss of $304 million, signaling variability and potentially realized or unrealized results from strategic holdings.
Changes in Assets and Liabilities
Changes in assets and liabilities were negative from 2019 onward, indicating a net use of cash in working capital adjustments each year, most significantly in 2021 at -$1,102 million, but moderating somewhat in 2022 to -$454 million.
Net Cash Provided by Operating Activities
Operating cash flow remained strong and somewhat stable, increasing from $5,483 million in 2018, dipping in 2019, then rising to a peak in 2021 of $6,340 million before dropping slightly in 2022 to $5,813 million, suggesting healthy cash generation despite income fluctuations.
Investing Activities
Net cash used in investing activities was variable but generally negative after 2018, with significant outflows in 2019 and 2020, reflecting heavy purchases and originations of loans and investments. The amount used decreased over time from -$16,218 million in 2020 to -$3,421 million in 2022, indicating a reduction in investment spending or a shift in strategy.
Purchases and Originations of Loans Receivable
Purchases and originations of loans receivable increased dramatically from 2019 through 2022, from -$1,631 million to -$28,170 million, indicating aggressive expansion or lending activity over this period.
Principal Repayment of Loans Receivable
Principal repayments also increased substantially, from $3,121 million in 2018 to $24,903 million in 2022, suggesting active loan portfolio management with high volumes of borrowing and repayment.
Purchases and Sales of Investments
Purchases of investments peaked in 2020 at -$41,513 million but declined markedly to -$20,219 million by 2022. Maturities and sales of investments grew from $21,898 million in 2018 to $39,698 million in 2021, then decreased to $23,411 million in 2022, highlighting significant portfolio turnover and rebalancing.
Financing Activities
Net cash from financing exhibited considerable volatility, showing positive inflows in 2019 and 2020 but negative outflows in 2021 and 2022. Purchases of treasury stock increased in magnitude to -$4,199 million in 2022, while proceeds from the issuance of common stock remained relatively constant, suggesting a focus on share repurchases during recent years.
Cash Position
Cash and equivalents increased steadily from $13,233 million at the end of 2018 to $19,156 million at the end of 2022, despite fluctuations in operating, investing, and financing cash flows, indicating overall liquidity strengthening.
Overall Financial Trends
The company exhibited growth in net income until 2020, followed by a decline in the last two years. Operating cash flow remained strong, supporting operations and investment activities. Investment outlays decreased after a peak in 2020, while loan originations and repayments increased significantly, reflecting active portfolio management. Financing patterns highlight increased treasury stock purchases and variable borrowing. Liquidity improved over the period with higher cash balances at year-end.