Current Ratio
since 2015
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PayPal Holdings Inc. pages available for free this week:
- Income Statement
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Selected Financial Data since 2015
- Total Asset Turnover since 2015
- Price to Book Value (P/BV) since 2015
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Calculation
PayPal Holdings Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | = | ÷ | |||
| Dec 31, 2021 | = | ÷ | |||
| Dec 31, 2020 | = | ÷ | |||
| Dec 31, 2019 | = | ÷ | |||
| Dec 31, 2018 | = | ÷ | |||
| Dec 31, 2017 | = | ÷ | |||
| Dec 31, 2016 | = | ÷ | |||
| Dec 31, 2015 | = | ÷ |
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
- Current assets
- The current assets have shown a consistent upward trend over the analyzed period from 2015 to 2022. Beginning at approximately 20.6 billion USD in 2015, current assets increased steadily each year, reaching over 57.5 billion USD by the end of 2022. This represents a near threefold growth, indicating a significant enhancement in the company's short-term resources available to meet its liabilities.
- Current liabilities
- Current liabilities also displayed a continuous increase throughout the same period. Starting from about 13.6 billion USD in 2015, liabilities rose to roughly 45.1 billion USD by the end of 2022. The increase in liabilities is noticeable, particularly between 2019 and 2020, where liabilities jumped sharply, suggesting potential increased obligations or liabilities assumed during that period.
- Current ratio
- The current ratio, which measures short-term liquidity by comparing current assets to current liabilities, exhibited a generally downward trend. It began at 1.52 in 2015 and remained stable through 2016, but gradually declined to a low of 1.22 in 2021. There was a slight recovery in 2022, with the ratio increasing to 1.28. Despite the fluctuations, the ratio stayed above 1 throughout the period, which indicates the company maintained the ability to cover its short-term liabilities with its current assets, but with a decreasing margin of safety over time.
- Overall insights
- The data demonstrates that although the company's current assets have grown substantially, current liabilities have increased at a comparable pace, leading to a marginal decrease in liquidity as reflected by the current ratio. The steep rise in liabilities around 2020 may warrant further investigation to understand the underlying causes, such as increased borrowing or operational costs. The slight improvement in the current ratio in 2022 could indicate early signs of stabilization in liquidity management.
Comparison to Competitors
PayPal Holdings Inc., current ratio, long-term trends, comparison to competitors
| PayPal Holdings Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | 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 | ||||||||||||||||
| Dec 31, 2021 | ||||||||||||||||
| Dec 31, 2020 | ||||||||||||||||
| Dec 31, 2019 | ||||||||||||||||
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| Dec 31, 2015 |
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 | ||
| Dec 31, 2021 | ||
| Dec 31, 2020 | ||
| Dec 31, 2019 | ||
| Dec 31, 2018 | ||
| Dec 31, 2017 | ||
| Dec 31, 2016 | ||
| Dec 31, 2015 |
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 | ||
| Dec 31, 2021 | ||
| Dec 31, 2020 | ||
| Dec 31, 2019 | ||
| Dec 31, 2018 | ||
| Dec 31, 2017 | ||
| Dec 31, 2016 | ||
| Dec 31, 2015 |
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).