Current Ratio
since 2015
Calculation
PayPal Holdings Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.28 | = | 57,517) | ÷ | 45,101) |
| Dec 31, 2021 | 1.22 | = | 52,574) | ÷ | 43,029) |
| Dec 31, 2020 | 1.33 | = | 50,995) | ÷ | 38,447) |
| Dec 31, 2019 | 1.43 | = | 38,495) | ÷ | 26,919) |
| Dec 31, 2018 | 1.27 | = | 32,963) | ÷ | 25,904) |
| Dec 31, 2017 | 1.43 | = | 32,645) | ÷ | 22,863) |
| Dec 31, 2016 | 1.52 | = | 25,733) | ÷ | 16,878) |
| Dec 31, 2015 | 1.52 | = | 20,648) | ÷ | 13,617) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 US$ in millions
Between 2015 and 2022, there was a substantial expansion in both current assets and current liabilities. While both figures grew consistently, the relative proportion between them shifted, resulting in a fluctuating current ratio that generally trended downward from its initial levels.
- Asset Growth Trends
- Current assets exhibited a steady upward trajectory, increasing from 20,648 million USD in 2015 to 57,517 million USD by 2022. A significant acceleration in asset accumulation occurred between 2019 and 2020, where current assets grew by approximately 12,500 million USD in a single fiscal year.
- Liability Growth Trends
- Current liabilities increased in tandem with assets, rising from 13,617 million USD in 2015 to 45,101 million USD in 2022. The most pronounced increase in obligations took place between 2019 and 2020, coinciding with the peak growth observed in assets, which suggests a scaling of operations or a shift in short-term funding strategies during that period.
- Current Ratio Analysis
- The current ratio began at 1.52 in 2015 and 2016, before declining to 1.27 by 2018. A temporary recovery to 1.43 was observed in 2019, followed by a decline to a period low of 1.22 in 2021. By the end of 2022, the ratio stabilized slightly at 1.28. Despite these fluctuations and the overall downward trend from 2015 levels, the ratio remained consistently above 1.0, indicating a sustained ability to cover short-term liabilities with current assets throughout the analyzed timeframe.
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Comparison to Competitors
PayPal Holdings Inc., current ratio, long-term trends, comparison to competitors
| PayPal Holdings Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 1.28 | 1.23 | 1.11 | 3.35 | 1.27 | 3.09 | 0.92 | 1.39 | 1.78 | 1.62 | 5.17 | 0.77 | 1.05 | 1.11 | 1.09 | 1.03 |
| Dec 31, 2021 | 1.22 | 1.25 | 1.25 | 5.05 | 1.77 | 3.54 | 0.88 | 1.94 | 2.08 | 2.30 | 4.34 | 0.91 | 1.23 | 1.05 | 1.16 | 1.12 |
| Dec 31, 2020 | 1.33 | 1.40 | 1.48 | — | 1.86 | 5.77 | 0.98 | 2.26 | 2.52 | 3.03 | 3.74 | 1.91 | 1.08 | 1.21 | 1.19 | 1.04 |
| Dec 31, 2019 | 1.43 | 1.40 | 0.79 | — | 1.74 | 4.51 | 1.02 | 1.83 | 2.53 | 2.49 | — | 1.78 | 0.95 | 1.03 | 0.99 | 1.11 |
| Dec 31, 2018 | 1.27 | 1.34 | 1.13 | — | 1.34 | — | 1.29 | 1.14 | 2.90 | 3.96 | — | 1.93 | 0.92 | 1.17 | 0.73 | 1.92 |
| Dec 31, 2017 | 1.43 | 1.23 | 2.05 | — | 1.53 | — | 1.33 | 0.73 | 2.48 | 3.08 | — | 1.65 | 0.83 | 1.15 | 1.04 | 1.93 |
| Dec 31, 2016 | 1.52 | 1.35 | 2.08 | — | 1.20 | — | 1.21 | 0.72 | 2.35 | 3.74 | — | 2.03 | 0.77 | 1.25 | 1.00 | 2.56 |
| Dec 31, 2015 | 1.52 | 1.36 | 2.18 | — | 1.80 | — | 1.24 | 1.47 | 2.50 | 4.13 | — | 1.04 | 0.81 | 1.48 | 0.99 | 3.29 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Sector (Software & Services)
PayPal Holdings Inc., current ratio, long-term trends, comparison to sector (software & services)
| PayPal Holdings Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2022 | 1.28 | 1.43 |
| Dec 31, 2021 | 1.22 | 1.68 |
| Dec 31, 2020 | 1.33 | 1.92 |
| Dec 31, 2019 | 1.43 | 1.84 |
| Dec 31, 2018 | 1.27 | 2.23 |
| Dec 31, 2017 | 1.43 | 2.06 |
| Dec 31, 2016 | 1.52 | 2.03 |
| Dec 31, 2015 | 1.52 | 2.15 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Industry (Information Technology)
PayPal Holdings Inc., current ratio, long-term trends, comparison to industry (information technology)
| PayPal Holdings Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2022 | 1.28 | 1.37 |
| Dec 31, 2021 | 1.22 | 1.55 |
| Dec 31, 2020 | 1.33 | 1.71 |
| Dec 31, 2019 | 1.43 | 1.66 |
| Dec 31, 2018 | 1.27 | 1.88 |
| Dec 31, 2017 | 1.43 | 2.04 |
| Dec 31, 2016 | 1.52 | 2.01 |
| Dec 31, 2015 | 1.52 | 2.04 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).