Stock Analysis on Net
Stock Analysis on Net

PayPal Holdings Inc. (NASDAQ:PYPL)

This company has been moved to the archive! The financial data has not been updated since May 9, 2023.

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

PayPal Holdings Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Activity Ratio
Total Asset Turnover
Reported 0.35 0.33 0.30 0.35 0.36
Adjusted 0.36 0.34 0.31 0.35 0.35
Solvency Ratios
Debt to Equity
Reported 0.53 0.42 0.45 0.29 0.13
Adjusted 0.61 0.46 0.49 0.33 0.17
Debt to Capital
Reported 0.35 0.29 0.31 0.23 0.11
Adjusted 0.38 0.31 0.33 0.25 0.14
Financial Leverage
Reported 3.88 3.49 3.52 3.04 2.82
Adjusted 4.07 3.52 3.50 3.06 2.86
Profitability Ratios
Net Profit Margin
Reported 8.79% 16.43% 19.59% 13.84% 13.31%
Adjusted 3.03% 15.71% 19.12% 10.94% 13.65%
Return on Equity (ROE)
Reported 11.93% 19.19% 20.99% 14.56% 13.37%
Adjusted 4.39% 18.65% 20.46% 11.70% 13.81%
Return on Assets (ROA)
Reported 3.07% 5.50% 5.97% 4.79% 4.75%
Adjusted 1.08% 5.30% 5.84% 3.82% 4.83%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. PayPal Holdings Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. PayPal Holdings Inc. adjusted debt-to-equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. PayPal Holdings Inc. adjusted debt-to-capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 PayPal Holdings Inc. adjusted financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. PayPal Holdings Inc. adjusted net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. PayPal Holdings Inc. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. PayPal Holdings Inc. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

PayPal Holdings Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Net revenues 27,518 25,371 21,454 17,772 15,451
Total assets 78,717 75,803 70,379 51,333 43,332
Activity Ratio
Total asset turnover1 0.35 0.33 0.30 0.35 0.36
Adjusted
Selected Financial Data (US$ in millions)
Net revenues 27,518 25,371 21,454 17,772 15,451
Adjusted total assets2 77,407 75,256 70,237 50,937 43,694
Activity Ratio
Adjusted total asset turnover3 0.36 0.34 0.31 0.35 0.35

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).

1 2022 Calculation
Total asset turnover = Net revenues ÷ Total assets
= 27,518 ÷ 78,717 = 0.35

2 Adjusted total assets. See details »

3 2022 Calculation
Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 27,518 ÷ 77,407 = 0.36

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. PayPal Holdings Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 10,835 9,048 8,939 4,965 1,998
Total PayPal stockholders’ equity 20,274 21,727 20,019 16,885 15,386
Solvency Ratio
Debt to equity1 0.53 0.42 0.45 0.29 0.13
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 11,555 9,810 9,725 5,472 2,584
Adjusted total equity3 19,013 21,371 20,051 16,631 15,274
Solvency Ratio
Adjusted debt to equity4 0.61 0.46 0.49 0.33 0.17

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).

1 2022 Calculation
Debt to equity = Total debt ÷ Total PayPal stockholders’ equity
= 10,835 ÷ 20,274 = 0.53

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2022 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 11,555 ÷ 19,013 = 0.61

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. PayPal Holdings Inc. adjusted debt-to-equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 10,835 9,048 8,939 4,965 1,998
Total capital 31,109 30,775 28,958 21,850 17,384
Solvency Ratio
Debt to capital1 0.35 0.29 0.31 0.23 0.11
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 11,555 9,810 9,725 5,472 2,584
Adjusted total capital3 30,568 31,181 29,776 22,103 17,858
Solvency Ratio
Adjusted debt to capital4 0.38 0.31 0.33 0.25 0.14

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).

1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 10,835 ÷ 31,109 = 0.35

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2022 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 11,555 ÷ 30,568 = 0.38

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. PayPal Holdings Inc. adjusted debt-to-capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Total assets 78,717 75,803 70,379 51,333 43,332
Total PayPal stockholders’ equity 20,274 21,727 20,019 16,885 15,386
Solvency Ratio
Financial leverage1 3.88 3.49 3.52 3.04 2.82
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 77,407 75,256 70,237 50,937 43,694
Adjusted total equity3 19,013 21,371 20,051 16,631 15,274
Solvency Ratio
Adjusted financial leverage4 4.07 3.52 3.50 3.06 2.86

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).

1 2022 Calculation
Financial leverage = Total assets ÷ Total PayPal stockholders’ equity
= 78,717 ÷ 20,274 = 3.88

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2022 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 77,407 ÷ 19,013 = 4.07

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 PayPal Holdings Inc. adjusted financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Net income 2,419 4,169 4,202 2,459 2,057
Net revenues 27,518 25,371 21,454 17,772 15,451
Profitability Ratio
Net profit margin1 8.79% 16.43% 19.59% 13.84% 13.31%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 835 3,985 4,102 1,945 2,109
Net revenues 27,518 25,371 21,454 17,772 15,451
Profitability Ratio
Adjusted net profit margin3 3.03% 15.71% 19.12% 10.94% 13.65%

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).

1 2022 Calculation
Net profit margin = 100 × Net income ÷ Net revenues
= 100 × 2,419 ÷ 27,518 = 8.79%

2 Adjusted net income. See details »

3 2022 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Net revenues
= 100 × 835 ÷ 27,518 = 3.03%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. PayPal Holdings Inc. adjusted net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Net income 2,419 4,169 4,202 2,459 2,057
Total PayPal stockholders’ equity 20,274 21,727 20,019 16,885 15,386
Profitability Ratio
ROE1 11.93% 19.19% 20.99% 14.56% 13.37%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 835 3,985 4,102 1,945 2,109
Adjusted total equity3 19,013 21,371 20,051 16,631 15,274
Profitability Ratio
Adjusted ROE4 4.39% 18.65% 20.46% 11.70% 13.81%

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).

1 2022 Calculation
ROE = 100 × Net income ÷ Total PayPal stockholders’ equity
= 100 × 2,419 ÷ 20,274 = 11.93%

2 Adjusted net income. See details »

3 Adjusted total equity. See details »

4 2022 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total equity
= 100 × 835 ÷ 19,013 = 4.39%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. PayPal Holdings Inc. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Net income 2,419 4,169 4,202 2,459 2,057
Total assets 78,717 75,803 70,379 51,333 43,332
Profitability Ratio
ROA1 3.07% 5.50% 5.97% 4.79% 4.75%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 835 3,985 4,102 1,945 2,109
Adjusted total assets3 77,407 75,256 70,237 50,937 43,694
Profitability Ratio
Adjusted ROA4 1.08% 5.30% 5.84% 3.82% 4.83%

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).

1 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 2,419 ÷ 78,717 = 3.07%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2022 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 835 ÷ 77,407 = 1.08%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. PayPal Holdings Inc. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.