Operating Profit Margin
since 2015
Calculation
PayPal Holdings Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Net revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 13.94% | = | 100 | × | 3,837) | ÷ | 27,518) |
| Dec 31, 2021 | 16.80% | = | 100 | × | 4,262) | ÷ | 25,371) |
| Dec 31, 2020 | 15.33% | = | 100 | × | 3,289) | ÷ | 21,454) |
| Dec 31, 2019 | 15.30% | = | 100 | × | 2,719) | ÷ | 17,772) |
| Dec 31, 2018 | 14.20% | = | 100 | × | 2,194) | ÷ | 15,451) |
| Dec 31, 2017 | 16.24% | = | 100 | × | 2,127) | ÷ | 13,094) |
| Dec 31, 2016 | 14.63% | = | 100 | × | 1,586) | ÷ | 10,842) |
| Dec 31, 2015 | 15.80% | = | 100 | × | 1,461) | ÷ | 9,248) |
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
The financial data reveals a period of significant revenue expansion contrasted by fluctuating operational efficiency. While net revenues demonstrated consistent year-over-year growth from 2015 through 2022, the ability to convert this growth into operating profit remained variable.
- Revenue Performance
- Net revenues exhibited a sustained upward trajectory, increasing from 9,248 million USD in 2015 to 27,518 million USD by 2022. This represents a consistent growth pattern without any annual declines over the eight-year period.
- Operating Income Dynamics
- Operating income grew steadily from 1,461 million USD in 2015 to a peak of 4,262 million USD in 2021. However, a trend reversal occurred in 2022, where operating income declined to 3,837 million USD despite the continued increase in net revenues.
- Operating Profit Margin Volatility
- The operating profit margin showed moderate volatility between 2015 and 2021, oscillating within a range of 14.20% to 16.80%. A peak margin of 16.80% was achieved in 2021. In 2022, a sharp contraction was observed, with the margin falling to 13.94%, the lowest point in the analyzed period. This compression indicates that operating expenses grew at a faster rate than revenue during the final year.
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Comparison to Competitors
PayPal Holdings Inc., operating profit margin, long-term trends, comparison to competitors
| PayPal Holdings Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 13.94% | 15.21% | 34.64% | -1.70% | 30.15% | -3.50% | 20.20% | 42.06% | 25.74% | -8.46% | -3.43% | 2.07% | 4.90% | 22.87% | -2.27% |
| Dec 31, 2021 | 16.80% | 15.08% | 36.76% | 5.37% | 26.07% | -1.86% | 25.95% | 41.59% | 37.58% | -26.66% | -7.15% | 2.14% | 4.36% | 17.48% | -5.76% |
| Dec 31, 2020 | 15.33% | 14.69% | 32.93% | — | 24.06% | -2.28% | 28.34% | 37.03% | 35.57% | -107.41% | -5.25% | 1.74% | 4.40% | 16.83% | -13.85% |
| Dec 31, 2019 | 15.30% | 14.59% | 29.25% | — | 21.05% | -5.55% | 27.33% | 34.14% | 34.26% | — | -1.87% | 4.03% | 1.22% | 15.48% | -16.42% |
| Dec 31, 2018 | 14.20% | 14.04% | 31.45% | — | 18.53% | — | 25.10% | 31.77% | 34.34% | — | -5.68% | 2.25% | -1.63% | 11.54% | -14.15% |
| Dec 31, 2017 | 16.24% | 12.60% | 29.69% | — | 16.67% | — | 26.95% | 24.82% | 33.69% | — | -10.21% | 0.77% | -5.25% | 12.76% | -24.00% |
| Dec 31, 2016 | 14.63% | 13.82% | 25.51% | — | 13.49% | — | 26.46% | 23.65% | 34.02% | — | -13.79% | 1.72% | -30.41% | 13.10% | -22.77% |
| Dec 31, 2015 | 15.80% | 13.48% | 18.83% | — | 16.77% | — | 17.60% | 19.41% | 36.29% | — | -14.39% | -2.71% | -16.55% | 11.88% | -27.38% |
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).