Total Asset Turnover
since 2015
Calculation
PayPal Holdings Inc., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net revenues1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 0.35 | = | 27,518) | ÷ | 78,717) |
| Dec 31, 2021 | 0.33 | = | 25,371) | ÷ | 75,803) |
| Dec 31, 2020 | 0.30 | = | 21,454) | ÷ | 70,379) |
| Dec 31, 2019 | 0.35 | = | 17,772) | ÷ | 51,333) |
| Dec 31, 2018 | 0.36 | = | 15,451) | ÷ | 43,332) |
| Dec 31, 2017 | 0.32 | = | 13,094) | ÷ | 40,774) |
| Dec 31, 2016 | 0.33 | = | 10,842) | ÷ | 33,103) |
| Dec 31, 2015 | 0.32 | = | 9,248) | ÷ | 28,881) |
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, a consistent upward trajectory in both net revenues and total assets is observed. Net revenues grew from US$ 9,248 million to US$ 27,518 million, while total assets expanded from US$ 28,881 million to US$ 78,717 million. Despite this substantial growth in scale, the total asset turnover ratio remained relatively stable, fluctuating within a narrow band between 0.30 and 0.36.
- Revenue and Asset Scaling
- Net revenues experienced steady year-over-year growth throughout the analyzed period. Similarly, total assets increased significantly, more than doubling between 2015 and 2022. The parallel growth of these two metrics indicates an expansion of the operational base to support increasing revenue streams.
- Total Asset Turnover Trends
- The total asset turnover ratio exhibited minimal volatility, indicating a consistent relationship between asset investment and revenue generation. A peak was reached in 2018 at 0.36, followed by a decline to a period low of 0.30 in 2020. This 2020 decrease coincided with a sharp increase in total assets, which grew by approximately 37% in a single year, outpacing the revenue growth for that specific period.
- Efficiency Recovery
- Following the 2020 dip, the asset turnover ratio recovered to 0.33 in 2021 and 0.35 in 2022. This recovery suggests a realignment where revenue growth began to catch up with the expanded asset base, returning the efficiency level to near its 2018 peak.
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Comparison to Competitors
PayPal Holdings Inc., total asset turnover, 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 | 0.35 | 1.30 | 0.65 | 0.48 | 0.69 | 0.56 | 0.48 | 0.46 | 0.54 | 0.39 | 0.55 | 0.45 | 0.28 | 0.54 | 0.54 | 0.49 |
| Dec 31, 2021 | 0.33 | 1.17 | 0.58 | 0.45 | 0.68 | 0.43 | 0.43 | 0.62 | 0.50 | 0.31 | 0.47 | 0.42 | 0.32 | 0.55 | 0.48 | 0.50 |
| Dec 31, 2020 | 0.30 | 1.20 | 0.53 | — | 0.68 | 0.32 | 0.47 | 0.70 | 0.47 | 0.34 | 0.41 | 0.38 | 0.31 | 0.52 | 0.46 | 0.53 |
| Dec 31, 2019 | 0.35 | 1.45 | 0.54 | — | 0.70 | 0.35 | 0.51 | 1.08 | 0.44 | 0.36 | — | 0.44 | 0.43 | 0.57 | 0.52 | 0.51 |
| Dec 31, 2018 | 0.36 | 1.70 | 0.48 | — | 0.87 | — | 0.65 | 1.15 | 0.43 | 0.29 | — | 0.39 | 0.50 | 0.67 | 0.51 | 0.43 |
| Dec 31, 2017 | 0.32 | 1.62 | 0.50 | — | 0.80 | — | 0.63 | 1.27 | 0.37 | 0.28 | — | 0.51 | 0.48 | 0.57 | 0.50 | 0.50 |
| Dec 31, 2016 | 0.33 | 1.69 | 0.46 | — | 0.87 | — | 0.68 | 1.10 | 0.44 | 0.33 | — | 0.50 | 0.52 | 0.68 | 0.46 | 0.43 |
| Dec 31, 2015 | 0.32 | 1.80 | 0.41 | — | 0.72 | — | 0.74 | 0.84 | 0.53 | 0.34 | — | 0.47 | 0.50 | 0.56 | 0.44 | 0.33 |
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., total asset turnover, long-term trends, comparison to sector (software & services)
| PayPal Holdings Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2022 | 0.35 | 0.53 |
| Dec 31, 2021 | 0.33 | 0.49 |
| Dec 31, 2020 | 0.30 | 0.48 |
| Dec 31, 2019 | 0.35 | 0.50 |
| Dec 31, 2018 | 0.36 | 0.51 |
| Dec 31, 2017 | 0.32 | 0.47 |
| Dec 31, 2016 | 0.33 | 0.54 |
| Dec 31, 2015 | 0.32 | 0.59 |
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., total asset turnover, long-term trends, comparison to industry (information technology)
| PayPal Holdings Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2022 | 0.35 | 0.64 |
| Dec 31, 2021 | 0.33 | 0.62 |
| Dec 31, 2020 | 0.30 | 0.58 |
| Dec 31, 2019 | 0.35 | 0.59 |
| Dec 31, 2018 | 0.36 | 0.59 |
| Dec 31, 2017 | 0.32 | 0.51 |
| Dec 31, 2016 | 0.33 | 0.55 |
| Dec 31, 2015 | 0.32 | 0.63 |
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).