Net Profit Margin
since 2015
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Calculation
PayPal Holdings Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Net revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | = | 100 | × | ÷ | |||
| Dec 31, 2021 | = | 100 | × | ÷ | |||
| Dec 31, 2020 | = | 100 | × | ÷ | |||
| Dec 31, 2019 | = | 100 | × | ÷ | |||
| Dec 31, 2018 | = | 100 | × | ÷ | |||
| Dec 31, 2017 | = | 100 | × | ÷ | |||
| Dec 31, 2016 | = | 100 | × | ÷ | |||
| Dec 31, 2015 | = | 100 | × | ÷ |
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
- Net Income
- Net income demonstrated a general upward trend from 2015 through 2020, increasing from $1,228 million to a peak of $4,202 million. However, after reaching this high point in 2020, net income slightly decreased to $4,169 million in 2021 and then experienced a more pronounced decline to $2,419 million in 2022. This indicates a period of strong growth followed by volatility and a notable contraction in the most recent year.
- Net Revenues
- Net revenues consistently rose across the entire period from 2015 to 2022, increasing steadily each year without any observed declines. Revenues grew from $9,248 million in 2015 to $27,518 million in 2022, indicating continuing expansion of the company’s top-line performance. The growth appears steady but with an acceleration noted particularly between 2019 and 2020.
- Net Profit Margin
- The net profit margin fluctuated moderately over the years. Initially, it hovered around 13% from 2015 to 2019, peaking at 13.84% in 2019. There was a significant increase in profitability margin in 2020 to 19.59%, reflecting improved operational efficiency or other factors driving increased profitability. However, this margin declined in the following years to 16.43% in 2021 and dropped sharply to 8.79% in 2022, which suggests growing cost pressures or reduced profitability relative to revenues in the most recent year.
- Overall Financial Trends
- The company exhibited robust revenue growth throughout the period analyzed, but this did not consistently translate into proportional net income increases in the last two years. The peak in profitability in 2020 followed by declines in both net income and profit margin in 2021 and 2022 could indicate challenges in sustaining earnings growth despite increasing revenues. The pronounced decline in profit margin in 2022 signals potential efficiency issues or increasing costs that may require management attention.
Comparison to Competitors
PayPal Holdings Inc., net profit margin, 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 | ||||||||||||||||
| 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 Sector (Software & Services)
PayPal Holdings Inc., net profit margin, 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., net profit margin, 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).