Debt to Equity
since 2015
Calculation
PayPal Holdings Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Total PayPal Stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 0.53 | = | 10,835) | ÷ | 20,274) |
| Dec 31, 2021 | 0.42 | = | 9,048) | ÷ | 21,727) |
| Dec 31, 2020 | 0.45 | = | 8,939) | ÷ | 20,019) |
| Dec 31, 2019 | 0.29 | = | 4,965) | ÷ | 16,885) |
| Dec 31, 2018 | 0.13 | = | 1,998) | ÷ | 15,386) |
| Dec 31, 2017 | 0.06 | = | 1,000) | ÷ | 15,994) |
| Dec 31, 2016 | 0.00 | = | —) | ÷ | 14,712) |
| Dec 31, 2015 | 0.00 | = | —) | ÷ | 13,759) |
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
A significant increase in financial leverage is evident between 2017 and 2022, characterized by a rapid escalation in total debt relative to stockholders' equity.
- Debt Accumulation Trends
- Total debt experienced aggressive growth, rising from 1,000 million US dollars in 2017 to 10,835 million US dollars by the end of 2022. The most substantial acceleration occurred between 2018 and 2020, during which the debt load increased from 1,998 million US dollars to 8,939 million US dollars.
- Equity Growth and Stability
- Stockholders' equity followed a general upward trajectory over the analyzed period, increasing from 13,759 million US dollars in 2015 to a peak of 21,727 million US dollars in 2021. Minor contractions were noted in 2018 and 2022, though the overall growth remained positive over the long term.
- Debt to Equity Ratio Analysis
- The debt to equity ratio demonstrated a consistent upward trend, climbing from 0.06 in 2017 to 0.53 in 2022. Although a slight reduction to 0.42 was observed in 2021, the overarching pattern indicates a transition from a conservative, low-leverage capital structure to one with significantly higher reliance on borrowed funds.
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Comparison to Competitors
PayPal Holdings Inc., debt to equity, 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 | 0.53 | 0.00 | 0.29 | 1.69 | 0.27 | 0.52 | 2.32 | 0.42 | 0.39 | — | 0.00 | 17.51 | 0.19 | 0.30 | 0.00 | 0.41 |
| Dec 31, 2021 | 0.42 | 0.00 | 0.28 | 1.51 | 0.13 | 0.71 | 2.74 | 0.21 | 0.50 | 16.08 | 0.00 | 5.08 | 0.07 | 0.43 | 0.02 | 0.55 |
| Dec 31, 2020 | 0.45 | 0.00 | 0.31 | — | 0.14 | 0.60 | 2.99 | 0.66 | 0.62 | 5.93 | 0.13 | 2.80 | 0.09 | 0.58 | 0.03 | 0.51 |
| Dec 31, 2019 | 0.29 | 0.00 | 0.39 | — | 0.16 | 0.00 | 3.02 | 0.12 | 0.77 | 2.58 | — | 0.90 | 0.22 | 0.33 | 0.03 | 0.62 |
| Dec 31, 2018 | 0.13 | 0.00 | 0.44 | — | 0.35 | — | 2.73 | 0.19 | 0.97 | 1.33 | — | 1.99 | 0.21 | 0.60 | 0.13 | 0.94 |
| Dec 31, 2017 | 0.06 | 0.00 | 0.22 | — | 0.74 | — | 2.66 | 0.36 | 1.23 | 1.08 | — | 0.69 | 0.32 | 2.01 | 0.04 | 0.46 |
| Dec 31, 2016 | 0.00 | 0.00 | 0.26 | — | 0.93 | — | 2.31 | 0.86 | 0.76 | 0.93 | — | 0.64 | 0.36 | 1.31 | 0.06 | 0.45 |
| Dec 31, 2015 | 0.00 | 0.00 | 0.27 | — | 0.25 | — | 2.80 | 0.21 | 0.44 | 0.86 | — | 1.00 | 0.49 | 0.84 | 0.07 | 0.44 |
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., debt to equity, long-term trends, comparison to sector (software & services)
| PayPal Holdings Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2022 | 0.53 | 0.71 |
| Dec 31, 2021 | 0.42 | 0.83 |
| Dec 31, 2020 | 0.45 | 0.95 |
| Dec 31, 2019 | 0.29 | 1.04 |
| Dec 31, 2018 | 0.13 | 1.07 |
| Dec 31, 2017 | 0.06 | 1.14 |
| Dec 31, 2016 | 0.00 | 0.90 |
| Dec 31, 2015 | 0.00 | 0.73 |
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., debt to equity, long-term trends, comparison to industry (information technology)
| PayPal Holdings Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2022 | 0.53 | 0.70 |
| Dec 31, 2021 | 0.42 | 0.82 |
| Dec 31, 2020 | 0.45 | 0.95 |
| Dec 31, 2019 | 0.29 | 0.97 |
| Dec 31, 2018 | 0.13 | 0.82 |
| Dec 31, 2017 | 0.06 | 0.80 |
| Dec 31, 2016 | 0.00 | 0.65 |
| Dec 31, 2015 | 0.00 | 0.56 |
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).