Stock Analysis on Net

PayPal Holdings Inc. (NASDAQ:PYPL)

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

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income 4,169  4,202  2,459  2,057  1,795 
Transaction and credit losses 1,060  1,741  1,380  1,274  1,011 
Depreciation and amortization 1,265  1,189  912  776  805 
Stock-based compensation 1,376  1,376  1,021  853  733 
Deferred income taxes (482) 165  (269) (171) (1,299)
Cost basis adjustments to loans and interest receivable held for sale —  —  —  244  92 
Net gains on strategic investments (46) (1,914) (207) (86) — 
Other 100  47  (150) (86) (25)
Accounts receivable (222) (100) (120) (59) 12 
Changes in loans and interest receivable held for sale, net —  —  1,407  (1,308)
Transaction loss allowance for cash losses, net (1,178) (1,120) (1,079) (1,046) (817)
Funds receivable —  —  (9) (19) — 
Other current assets and non-current assets (150) (498) (566) (93) (188)
Accounts payable (31) (4) 26  62 
Funds payable and amounts due to customers —  —  499  22  — 
Income taxes payable 73  (230) (40) (44) 19 
Other current liabilities and non-current liabilities 406  1,000  722  428  1,639 
Changes in assets and liabilities (1,102) (952) (585) 622  (581)
Adjustments to reconcile net income to net cash provided by operating activities 2,171  1,652  2,102  3,426  736 
Net cash provided by operating activities 6,340  5,854  4,561  5,483  2,531 
Purchases of property and equipment (908) (866) (704) (823) (667)
Proceeds from sales of property and equipment 120  17  — 
Changes in principal loans receivable, net (1,594) 294  (1,631) 3,121  (920)
Purchases of investments (40,116) (41,513) (27,881) (22,381) (19,418)
Maturities and sales of investments 39,698  30,908  24,878  21,898  18,450 
Acquisitions, net of cash and restricted cash acquired (2,763) (3,609) (70) (2,124) (323)
Funds receivable 193  (1,552) (342) 1,146  (2,480)
Net cash (used in) provided by investing activities (5,485) (16,218) (5,733) 840  (5,358)
Proceeds from issuance of common stock 162  137  138  144  144 
Purchases of treasury stock (3,373) (1,635) (1,411) (3,520) (1,006)
Tax withholdings related to net share settlements of equity awards (1,036) (521) (504) (419) (166)
Borrowings under financing arrangements 272  6,966  5,471  2,075  1,800 
Repayments under financing arrangements (361) (3,000) (2,516) (1,115) (980)
Funds payable and amounts due to customers 3,572  10,597  2,510  1,573  4,292 
Other financing activities —  (52) —  —  — 
Net cash provided by (used in) financing activities (764) 12,492  3,688  (1,262) 4,084 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (102) 169  (6) (113) 36 
Net change in cash, cash equivalents, and restricted cash (11) 2,297  2,510  4,948  1,293 
Cash, cash equivalents, and restricted cash at beginning of period 18,040  15,743  13,233  8,285  1,590 
Cash, cash equivalents, and restricted cash at end of period 18,029  18,040  15,743  13,233  2,883 

Based on: 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), 10-K (reporting date: 2017-12-31).

Cash flow statement item Description The company
Net cash provided by operating activities Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities. PayPal Holdings Inc. net cash provided by operating activities increased from 2019 to 2020 and from 2020 to 2021.
Net cash (used in) provided by investing activities Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets. PayPal Holdings Inc. net cash (used in) provided by investing activities decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Net cash provided by (used in) financing activities Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit. PayPal Holdings Inc. net cash provided by (used in) financing activities increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.