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.

PayPal Holdings Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income	2,419)	4,169)	4,202)	2,459)	2,057)
Transaction and credit losses	1,572)	1,060)	1,741)	1,380)	1,274)
Depreciation and amortization	1,317)	1,265)	1,189)	912)	776)
Stock-based compensation	1,261)	1,376)	1,376)	1,021)	853)
Deferred income taxes	(811)	(482)	165)	(269)	(171)
Cost basis adjustments to loans and interest receivable held for sale	—)	—)	—)	—)	244)
Net (gains) losses on strategic investments	304)	(46)	(1,914)	(207)	(86)
Other	205)	100)	47)	(150)	(86)
Accounts receivable	(163)	(222)	(100)	(120)	(59)
Changes in loans and interest receivable held for sale, net	—)	—)	—)	4)	1,407)
Transaction loss allowance for cash losses, net	(1,230)	(1,178)	(1,120)	(1,079)	(1,046)
Funds receivable	—)	—)	—)	(9)	(19)
Other current assets and non-current assets	118)	(150)	(498)	(566)	(93)
Accounts payable	(35)	(31)	(4)	4)	26)
Funds payable and amounts due to customers	—)	—)	—)	499)	22)
Income taxes payable	373)	73)	(230)	(40)	(44)
Other current liabilities and non-current liabilities	483)	406)	1,000)	722)	428)
Changes in assets and liabilities	(454)	(1,102)	(952)	(585)	622)
Adjustments to reconcile net income to net cash provided by operating activities	3,394)	2,171)	1,652)	2,102)	3,426)
Net cash provided by operating activities	5,813)	6,340)	5,854)	4,561)	5,483)
Purchases of property and equipment	(706)	(908)	(866)	(704)	(823)
Proceeds from sales of property and equipment	5)	5)	120)	17)	3)
Purchases and originations of loans receivable	(28,170)	(13,420)	(6,098)	(1,631)	—)
Principal repayment of loans receivable	24,903)	11,826)	6,392)	—)	3,121)
Purchases of investments	(20,219)	(40,116)	(41,513)	(27,881)	(22,381)
Maturities and sales of investments	23,411)	39,698)	30,908)	24,878)	21,898)
Acquisitions, net of cash and restricted cash acquired	—)	(2,763)	(3,609)	(70)	(2,124)
Funds receivable	(2,813)	193)	(1,552)	(342)	1,146)
Collateral posted related to derivative instruments, net	(19)	—)	—)	—)	—)
Other investing activities	187)	—)	—)	—)	—)
Net cash (used in) provided by investing activities	(3,421)	(5,485)	(16,218)	(5,733)	840)
Proceeds from issuance of common stock	143)	162)	137)	138)	144)
Purchases of treasury stock	(4,199)	(3,373)	(1,635)	(1,411)	(3,520)
Tax withholdings related to net share settlements of equity awards	(336)	(1,036)	(521)	(504)	(419)
Borrowings under financing arrangements	3,475)	272)	6,966)	5,471)	2,075)
Repayments under financing arrangements	(1,686)	(361)	(3,000)	(2,516)	(1,115)
Funds payable and amounts due to customers	1,498)	3,572)	10,597)	2,510)	1,573)
Collateral received related to derivative instruments, net	(6)	—)	—)	—)	—)
Other financing activities	1)	—)	(52)	—)	—)
Net cash provided by (used in) financing activities	(1,110)	(764)	12,492)	3,688)	(1,262)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(155)	(102)	169)	(6)	(113)
Net change in cash, cash equivalents, and restricted cash	1,127)	(11)	2,297)	2,510)	4,948)
Cash, cash equivalents, and restricted cash at beginning of period	18,029)	18,040)	15,743)	13,233)	8,285)
Cash, cash equivalents, and restricted cash at end of period	19,156)	18,029)	18,040)	15,743)	13,233)

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.

Download chart

PayPal Holdings Inc. (NASDAQ:PYPL)

Cash Flow Statement