Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
PayPal Holdings Inc., liquidity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.28 | 1.22 | 1.33 | 1.43 | 1.27 | |
| Quick ratio | 1.23 | 1.19 | 1.30 | 1.40 | 1.24 | |
| Cash ratio | 1.05 | 1.06 | 1.21 | 1.24 | 1.13 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | PayPal Holdings Inc. current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | PayPal Holdings Inc. quick ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | PayPal Holdings Inc. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Current Ratio
PayPal Holdings Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 57,517) | 52,574) | 50,995) | 38,495) | 32,963) | |
| Current liabilities | 45,101) | 43,029) | 38,447) | 26,919) | 25,904) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.28 | 1.22 | 1.33 | 1.43 | 1.27 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Accenture PLC | 1.23 | 1.25 | 1.40 | 1.40 | 1.34 | |
| Adobe Inc. | 1.11 | 1.25 | 1.48 | 0.79 | 1.13 | |
| International Business Machines Corp. | 0.92 | 0.88 | 0.98 | 1.02 | — | |
| Intuit Inc. | 1.39 | 1.94 | 2.26 | 1.83 | 1.14 | |
| Microsoft Corp. | 1.78 | 2.08 | 2.52 | 2.53 | 2.90 | |
| Oracle Corp. | 1.62 | 2.30 | 3.03 | 2.49 | 3.96 | |
| Palo Alto Networks Inc. | 0.77 | 0.91 | 1.91 | 1.78 | 1.93 | |
| Salesforce Inc. | 1.05 | 1.23 | 1.08 | 0.95 | — | |
| ServiceNow Inc. | 1.11 | 1.05 | 1.21 | 1.03 | — | |
| Synopsys Inc. | 1.09 | 1.16 | 1.19 | 0.99 | 0.73 | |
| Current Ratio, Sector | ||||||
| Software & Services | 1.42 | 1.67 | 1.92 | 1.85 | — | |
| Current Ratio, Industry | ||||||
| Information Technology | 1.44 | 1.64 | 1.85 | 1.77 | — | |
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
Current ratio = Current assets ÷ Current liabilities
= 57,517 ÷ 45,101 = 1.28
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | PayPal Holdings Inc. current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
Quick Ratio
PayPal Holdings Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 7,776) | 5,197) | 4,794) | 7,349) | 7,575) | |
| Short-term investments | 3,092) | 4,303) | 8,289) | 3,412) | 1,534) | |
| Accounts receivable, net | 963) | 800) | 577) | 435) | 313) | |
| Loans and interest receivable, net of allowances | 7,431) | 4,846) | 2,769) | 3,972) | 2,532) | |
| Funds receivable and customer accounts | 36,357) | 36,141) | 33,418) | 22,527) | 20,062) | |
| Total quick assets | 55,619) | 51,287) | 49,847) | 37,695) | 32,016) | |
| Current liabilities | 45,101) | 43,029) | 38,447) | 26,919) | 25,904) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.23 | 1.19 | 1.30 | 1.40 | 1.24 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Accenture PLC | 1.12 | 1.14 | 1.29 | 1.29 | 1.24 | |
| Adobe Inc. | 1.00 | 1.11 | 1.34 | 0.70 | 1.06 | |
| International Business Machines Corp. | 0.73 | 0.67 | 0.83 | 0.87 | — | |
| Intuit Inc. | 1.17 | 1.65 | 2.04 | 1.44 | 0.86 | |
| Microsoft Corp. | 1.57 | 1.90 | 2.33 | 2.35 | 2.74 | |
| Oracle Corp. | 1.43 | 2.15 | 2.83 | 2.31 | 3.78 | |
| Palo Alto Networks Inc. | 0.75 | 0.88 | 1.85 | 1.72 | 1.81 | |
| Salesforce Inc. | 0.93 | 1.11 | 0.95 | 0.82 | — | |
| ServiceNow Inc. | 1.06 | 1.01 | 1.16 | 0.98 | — | |
| Synopsys Inc. | 0.85 | 0.89 | 0.94 | 0.73 | 0.61 | |
| Quick Ratio, Sector | ||||||
| Software & Services | 1.25 | 1.51 | 1.76 | 1.69 | — | |
| Quick Ratio, Industry | ||||||
| Information Technology | 1.15 | 1.38 | 1.60 | 1.55 | — | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 55,619 ÷ 45,101 = 1.23
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | PayPal Holdings Inc. quick ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Cash Ratio
PayPal Holdings Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 7,776) | 5,197) | 4,794) | 7,349) | 7,575) | |
| Short-term investments | 3,092) | 4,303) | 8,289) | 3,412) | 1,534) | |
| Funds receivable and customer accounts | 36,357) | 36,141) | 33,418) | 22,527) | 20,062) | |
| Total cash assets | 47,225) | 45,641) | 46,501) | 33,288) | 29,171) | |
| Current liabilities | 45,101) | 43,029) | 38,447) | 26,919) | 25,904) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 1.05 | 1.06 | 1.21 | 1.24 | 1.13 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Accenture PLC | 0.45 | 0.52 | 0.67 | 0.55 | 0.50 | |
| Adobe Inc. | 0.75 | 0.84 | 1.09 | 0.51 | 0.75 | |
| International Business Machines Corp. | 0.28 | 0.22 | 0.36 | 0.24 | — | |
| Intuit Inc. | 0.90 | 1.46 | 2.00 | 1.39 | 0.81 | |
| Microsoft Corp. | 1.10 | 1.47 | 1.89 | 1.93 | 2.29 | |
| Oracle Corp. | 1.12 | 1.93 | 2.50 | 2.03 | 3.50 | |
| Palo Alto Networks Inc. | 0.44 | 0.57 | 1.39 | 1.37 | 1.59 | |
| Salesforce Inc. | 0.48 | 0.67 | 0.54 | 0.39 | — | |
| ServiceNow Inc. | 0.71 | 0.67 | 0.83 | 0.61 | — | |
| Synopsys Inc. | 0.56 | 0.65 | 0.58 | 0.42 | 0.34 | |
| Cash Ratio, Sector | ||||||
| Software & Services | 0.81 | 1.10 | 1.33 | 1.23 | — | |
| Cash Ratio, Industry | ||||||
| Information Technology | 0.72 | 0.96 | 1.19 | 1.11 | — | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 47,225 ÷ 45,101 = 1.05
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | PayPal Holdings Inc. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |