Stock Analysis on Net

PayPal Holdings Inc. (NASDAQ:PYPL)

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

Cash Flow Statement 
Quarterly Data

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 (quarterly data)

US$ in millions

Microsoft Excel
3 months ended: Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Net income (loss) 795 921 1,330 (341) 509 801 1,087 1,184 1,097 1,567 1,021 1,530 84 507 462 823 667 584 436 526 511
Transaction and credit losses 442 388 367 448 369 350 268 169 273 366 344 440 591 381 340 318 341 340 295 334 305
Depreciation and amortization 270 326 330 333 328 326 323 316 300 301 298 297 293 227 227 228 230 223 188 180 185
Stock-based compensation 345 294 226 312 429 318 300 390 368 377 364 352 283 285 266 223 247 230 213 205 205
Deferred income taxes (67) (273) (81) (441) (16) (307) (72) (103) 171 (37) 110 (79) (147) (157) (39) 74 (137) (123) (2) 91
Cost basis adjustments to loans and interest receivable held for sale 116 128
Net (gains) losses on strategic investments (48) 141 (495) 672 (14) 290 (173) (283) 120 (941) (234) (890) 151 (37) 228 (218) (180) (55) (31)
Other (92) (362) 245 248 74 8 15 26 51 37 37 5 (32) (20) (38) (48) (44) (38) (38) (5) (5)
Accounts receivable (3) (74) (22) (17) (50) (67) (43) (15) (97) (107) (40) (30) 77 (17) (37) 30 (96) 74 (134) (24) 25
Changes in loans and interest receivable held for sale, net 4 3,675 (977) (1,291)
Accounts payable 3 20 (28) 2 (29) 19 (91) 75 (34) 89 (45) (27) (21) 55 (2) (46) (3) 21 22 18 (35)
Income taxes payable (235) 264 23 69 17 55 (2) 53 (33) (115) (229) 63 51 (7) (26) (21) 14 (23) (7) (14)
Other assets and liabilities (240) (488) 53 181 (375) (30) (99) (506) (287) (498) (759) 533 106 37 (167) (76) (227) (85) 143 (298) (468)
Changes in assets and liabilities (475) (278) 26 235 (437) (23) (235) (393) (451) (631) (1,073) 539 213 68 (232) (113) (308) (13) 3,699 (1,295) (1,769)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities 375 236 618 1,807 733 962 426 122 661 (320) (301) 853 1,420 757 634 351 360 550 4,234 (498) (860)
Net cash provided by (used in) operating activities 1,170 1,157 1,948 1,466 1,242 1,763 1,513 1,306 1,758 1,247 720 2,383 1,504 1,264 1,096 1,174 1,027 1,134 4,670 28 (349)
Purchases of property and equipment (170) (158) (182) (175) (191) (213) (227) (247) (221) (226) (241) (193) (206) (174) (173) (139) (218) (224) (223) (198) (178)
Proceeds from sales of property and equipment 1 2 3 2 2 1 1 119 17 3
Purchases and originations of loans receivable (8,267) (9,003) (6,867) (6,775) (5,525) (5,179) (3,304) (2,804) (2,133)
Principal repayment of loans receivable 8,063 7,739 6,254 5,856 5,054 4,228 2,977 2,413 2,208
Changes in principal loans receivable, net (legacy) (229) 520 389 (386) (520) (379) (375) (357) (452) 2,573 262 738
Purchases of investments (6,100) (3,764) (3,304) (4,547) (8,604) (9,211) (10,665) (9,265) (10,975) (13,180) (13,489) (11,251) (3,593) (8,073) (6,617) (5,053) (8,138) (6,740) (5,025) (5,341) (5,275)
Maturities and sales of investments 5,445 6,641 5,683 2,336 8,751 9,308 11,707 8,965 9,718 11,175 9,940 4,282 5,511 7,488 6,853 4,509 6,028 5,951 6,278 5,378 4,291
Acquisitions, net of cash and restricted cash acquired (2,294) (469) 3 (3,612) (70) 12 (2,120) (16)
Funds receivable 1,076 (1,728) (203) (643) (239) 230 (164) 307 (180) (492) 74 (733) (401) 950 922 (39) (2,175) 1,573 (1,329) 473 429
Collateral posted related to derivative instruments, net (22) (19)
Other investing activities 8 157 30
Net cash (used in) provided by investing activities 34 (135) 1,381 (3,916) (751) (3,129) 326 (1,099) (1,583) (2,952) (3,193) (7,505) (2,568) (399) 623 (1,097) (4,860) 123 154 558 5
Proceeds from issuance of common stock 1 57 83 3 72 1 87 2 65 1 70 1 60 4 67 7 61 5 65 13
Purchases of treasury stock (1,432) (1,010) (939) (750) (1,500) (1,500) (350) (200) (1,323) (265) (370) (200) (800) (305) (350) (756) (595) (600) (500) (1,825)
Tax withholdings related to net share settlements of equity awards (149) (15) (46) (31) (244) (58) (38) (77) (863) (58) (42) (19) (402) (31) (24) (140) (309) (27) (20) (37) (335)
Borrowings under financing arrangements 72 129 58 3,002 286 272 3,966 3,000 4,971 500 2,075
Repayments under financing arrangements (5) (1,582) (104) (361) (3,000) (7) (2,509) (14) (25) (1,076)
Funds payable and amounts due to customers (1,020) 2,157 (2,245) 723 863 997 (429) (7) 3,011 2,775 1,904 5,461 457 134 (753) 569 2,560 (1,194) 1,689 213 865
Collateral received related to derivative instruments, net (129) (6)
Other financing activities 1 (37) (15)
Net cash provided by (used in) financing activities (2,662) 1,312 (3,172) 1,445 (695) (578) (816) (197) 827 2,480 1,493 6,278 2,241 (149) 1,339 996 1,502 (1,769) 1,049 (1,335) 793
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (4) 98 (117) (154) 18 4 (72) 8 (42) 143 98 106 (178) 43 (48) (2) 1 (24) (26) (56) (7)
Net change in cash, cash equivalents, and restricted cash (1,462) 2,432 40 (1,159) (186) (1,940) 951 18 960 918 (882) 1,262 999 759 3,010 1,071 (2,330) (536) 5,847 (805) 442

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).


Net Income Trend
Net income experienced significant fluctuations from 2018 through 2023. Initial quarters in 2018 and 2019 showed stable and moderately growing profits, peaking in Jun 2020 at 1,530 million USD. However, a sharp decline was observed in Mar 2020 with a low of 84 million USD. Post-2020, net income showed volatility with substantial increases and decreases, including a loss of -341 million USD in Jun 2022, followed by recovery and moderate profits by Mar 2023 at 795 million USD.
Transaction and Credit Losses
Transaction and credit losses rose noticeably during the pandemic period starting Mar 2020, reaching a peak of 591 million USD, compared to pre-pandemic averages around 300-400 million USD. Despite some reduction after 2020, losses remained elevated relative to earlier years, suggesting increased risk or credit issues during this timeframe.
Depreciation and Amortization
Depreciation and amortization expenses followed a steady upward trend from 185 million USD in early 2018 to a peak of 333 million USD in Dec 2022, then slightly declined to 270 million USD by Mar 2023. This steady increase reflects continuous investment in fixed assets or intangibles.
Stock-Based Compensation
Stock-based compensation costs rose gradually, starting around 205 million USD in early 2018, peaking at 429 million USD in Mar 2022, before declining to 345 million USD in Mar 2023. The pattern indicates increasing use of equity incentives over the years, with some normalization recently.
Cash Flow from Operating Activities
Net cash provided by operating activities showed strong overall growth, particularly from 2018 onward, with notable peaks in Jun 2020 (2,383 million USD) and Dec 2021 (1,763 million USD). Fluctuations correspond with net income variations but maintain a generally positive momentum, indicating healthy operational cash generation.
Investing Activities
Cash flow used in investing activities exhibited considerable variability, with large outflows in late 2019 and throughout 2020, reaching over -7,500 million USD in Jun 2020. Purchases of investments were consistently substantial, while proceeds from sales and maturities fluctuated. Recent quarters showed smaller net outflows or minor inflows, suggesting a more cautious or stabilized investment approach.
Financing Activities
Net cash from financing activities showed irregular patterns, including large inflows in Jun 2020 (6,278 million USD) and Mar 2020 (2,241 million USD), followed by periods of outflows and moderate inflows. Notably, purchases of treasury stock were consistently negative, indicating ongoing stock buybacks. Borrowings and repayments under financing arrangements varied, reflecting shifting capital structure strategies.
Working Capital Changes
Changes in accounts receivable and payable varied widely across periods, with no clear directional trend but occasional large swings. Other assets and liabilities also showed high volatility, impacting changes in assets and liabilities, which in turn affected operating cash flows.
Tax and Deferred Income Taxes
Deferred income taxes displayed considerable volatility, with sharp positive and negative adjustments throughout the periods, notably large negative impacts in 2022. Income taxes payable fluctuated, occasionally showing large negative or positive balances, which may reflect timing differences or tax strategy impacts.
Net Cash Position
Net change in cash and cash equivalents varied from sizable increases, such as a 5,847 million USD increase in Sep 2018, to significant decreases, including a 2,330 million USD decline in Mar 2019 and a 1,462 million USD decline in Mar 2023. These fluctuations are consistent with substantial variations in operating, investing, and financing cash flows over time.
Overall Observations
Financial results illustrate responsiveness to external events, especially the COVID-19 pandemic’s impact on income volatility, credit losses, and cash flows. The company pursued active investment strategies with large transactions in loans and securities, alongside sustained share repurchase programs. Operating cash flow remained generally robust, supporting ongoing investment and financing activities despite episodic net losses and elevated transaction losses.