Stock Analysis on Net

PayPal Holdings Inc. (NASDAQ:PYPL)

Analysis of Long-term (Investment) Activity Ratios 

Microsoft Excel LibreOffice Calc

Long-term Activity Ratios (Summary)

PayPal Holdings Inc., long-term (investment) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net fixed asset turnover 13.29 11.87 10.50 8.96 8.57
Net fixed asset turnover (including operating lease, right-of-use asset) 9.88 8.53 8.18 8.96 8.57
Total asset turnover 0.33 0.30 0.35 0.36 0.32
Equity turnover 1.17 1.07 1.05 1.00 0.82

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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.