Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
PayPal Holdings Inc., long-term (investment) activity ratios
Based on: 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | PayPal Holdings Inc. net fixed asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | PayPal Holdings Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2019 to 2020 and from 2020 to 2021. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | PayPal Holdings Inc. total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | PayPal Holdings Inc. equity turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Net Fixed Asset Turnover
PayPal Holdings Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | 25,371 | 21,454 | 17,772 | 15,451 | 13,094 | |
| Property and equipment, net | 1,909 | 1,807 | 1,693 | 1,724 | 1,528 | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 13.29 | 11.87 | 10.50 | 8.96 | 8.57 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Accenture PLC | 30.83 | 28.68 | 31.06 | 32.91 | 32.23 | |
| Adobe Inc. | 9.44 | 8.48 | 8.64 | 8.40 | 7.79 | |
| Automatic Data Processing Inc. | 21.92 | 20.73 | 18.55 | 16.79 | 15.87 | |
| International Business Machines Corp. | 10.07 | 7.33 | 7.71 | 7.38 | 7.12 | |
| Intuit Inc. | 12.35 | 10.46 | 8.70 | 7.34 | 5.03 | |
| Mastercard Inc. | 15.28 | 13.26 | 15.11 | 16.23 | 15.07 | |
| Microsoft Corp. | 2.81 | 3.24 | 3.45 | 3.75 | 3.79 | |
| Oracle Corp. | 5.74 | 6.26 | 6.32 | 6.75 | 7.10 | |
| Salesforce Inc. | 8.64 | 7.20 | 6.48 | 5.38 | 4.69 | |
| ServiceNow Inc. | 7.70 | 6.85 | 7.39 | 7.51 | 7.89 | |
| Visa Inc. | 8.88 | 7.98 | 8.53 | 8.34 | 8.15 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Software & Services | 5.24 | 5.64 | 6.03 | 6.33 | 6.37 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | 4.63 | 4.41 | 4.47 | 4.73 | 4.85 | |
Based on: 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).
1 2021 Calculation
Net fixed asset turnover = Net revenues ÷ Property and equipment, net
= 25,371 ÷ 1,909 = 13.29
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | PayPal Holdings Inc. net fixed asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
PayPal Holdings Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | 25,371 | 21,454 | 17,772 | 15,451 | 13,094 | |
| Property and equipment, net | 1,909 | 1,807 | 1,693 | 1,724 | 1,528 | |
| Operating ROU lease assets (included in Other assets) | 659 | 707 | 479 | — | — | |
| Property and equipment, net (including operating lease, right-of-use asset) | 2,568 | 2,514 | 2,172 | 1,724 | 1,528 | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 9.88 | 8.53 | 8.18 | 8.96 | 8.57 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Accenture PLC | 10.48 | 9.37 | 31.06 | 32.91 | 32.23 | |
| Adobe Inc. | 7.46 | 6.42 | 8.64 | 8.40 | 7.79 | |
| Automatic Data Processing Inc. | 13.09 | 12.18 | 18.55 | 16.79 | 15.87 | |
| International Business Machines Corp. | 6.43 | 5.00 | 5.14 | 7.38 | 7.12 | |
| Intuit Inc. | 8.30 | 8.00 | 8.70 | 7.34 | 5.03 | |
| Mastercard Inc. | 9.90 | 8.04 | 9.24 | 16.23 | 15.07 | |
| Microsoft Corp. | 2.37 | 2.70 | 2.87 | 3.05 | 3.79 | |
| Oracle Corp. | 4.20 | 4.74 | 6.32 | 6.75 | 7.10 | |
| Salesforce Inc. | 3.75 | 3.16 | 6.48 | 5.38 | 4.69 | |
| ServiceNow Inc. | 4.34 | 4.06 | 3.98 | 7.51 | 7.89 | |
| Visa Inc. | 7.46 | 6.73 | 8.53 | 8.34 | 8.15 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Software & Services | 3.99 | 4.20 | 4.97 | 5.67 | 6.37 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | 3.94 | 3.74 | 4.16 | 4.57 | 4.85 | |
Based on: 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).
1 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 25,371 ÷ 2,568 = 9.88
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | PayPal Holdings Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2019 to 2020 and from 2020 to 2021. |
Total Asset Turnover
PayPal Holdings Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | 25,371 | 21,454 | 17,772 | 15,451 | 13,094 | |
| Total assets | 75,803 | 70,379 | 51,333 | 43,332 | 40,774 | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.33 | 0.30 | 0.35 | 0.36 | 0.32 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Accenture PLC | 1.17 | 1.20 | 1.45 | 1.70 | 1.62 | |
| Adobe Inc. | 0.58 | 0.53 | 0.54 | 0.48 | 0.50 | |
| Automatic Data Processing Inc. | 0.31 | 0.37 | 0.34 | 0.36 | 0.33 | |
| International Business Machines Corp. | 0.43 | 0.47 | 0.51 | 0.65 | 0.63 | |
| Intuit Inc. | 0.62 | 0.70 | 1.08 | 1.15 | 1.27 | |
| Mastercard Inc. | 0.50 | 0.46 | 0.58 | 0.60 | 0.59 | |
| Microsoft Corp. | 0.50 | 0.47 | 0.44 | 0.43 | 0.37 | |
| Oracle Corp. | 0.31 | 0.34 | 0.36 | 0.29 | 0.28 | |
| Salesforce Inc. | 0.32 | 0.31 | 0.43 | 0.50 | 0.48 | |
| ServiceNow Inc. | 0.55 | 0.52 | 0.57 | 0.67 | 0.57 | |
| Visa Inc. | 0.29 | 0.27 | 0.32 | 0.30 | 0.27 | |
| Total Asset Turnover, Sector | ||||||
| Software & Services | 0.45 | 0.45 | 0.47 | 0.47 | 0.44 | |
| Total Asset Turnover, Industry | ||||||
| Information Technology | 0.58 | 0.54 | 0.55 | 0.56 | 0.49 | |
Based on: 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).
1 2021 Calculation
Total asset turnover = Net revenues ÷ Total assets
= 25,371 ÷ 75,803 = 0.33
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | PayPal Holdings Inc. total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Equity Turnover
PayPal Holdings Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | 25,371 | 21,454 | 17,772 | 15,451 | 13,094 | |
| Total PayPal stockholders’ equity | 21,727 | 20,019 | 16,885 | 15,386 | 15,994 | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.17 | 1.07 | 1.05 | 1.00 | 0.82 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Accenture PLC | 2.59 | 2.61 | 3.00 | 4.01 | 4.11 | |
| Adobe Inc. | 1.07 | 0.97 | 1.06 | 0.96 | 0.86 | |
| Automatic Data Processing Inc. | 2.65 | 2.54 | 2.63 | 3.85 | 3.11 | |
| International Business Machines Corp. | 3.03 | 3.57 | 3.70 | 4.74 | 4.50 | |
| Intuit Inc. | 0.98 | 1.50 | 1.81 | 2.53 | 3.82 | |
| Mastercard Inc. | 2.58 | 2.39 | 2.86 | 2.77 | 2.29 | |
| Microsoft Corp. | 1.18 | 1.21 | 1.23 | 1.33 | 1.24 | |
| Oracle Corp. | 7.73 | 3.24 | 1.81 | 0.87 | 0.70 | |
| Salesforce Inc. | 0.51 | 0.50 | 0.85 | 1.12 | 1.12 | |
| ServiceNow Inc. | 1.60 | 1.59 | 1.63 | 2.35 | 3.31 | |
| Visa Inc. | 0.64 | 0.60 | 0.66 | 0.61 | 0.56 | |
| Equity Turnover, Sector | ||||||
| Software & Services | 1.38 | 1.43 | 1.54 | 1.54 | 1.41 | |
| Equity Turnover, Industry | ||||||
| Information Technology | 1.62 | 1.59 | 1.60 | 1.58 | 1.27 | |
Based on: 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).
1 2021 Calculation
Equity turnover = Net revenues ÷ Total PayPal stockholders’ equity
= 25,371 ÷ 21,727 = 1.17
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | PayPal Holdings Inc. equity turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |