Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Debt to Equity since 2015
- Price to Earnings (P/E) since 2015
- Price to Book Value (P/BV) since 2015
- Analysis of Revenues
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
PayPal Holdings Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a consistent upward trend over the observed periods. Starting at 9.18 in March 2019, it gradually increases each quarter, reaching 17.19 by March 2023. This steady improvement suggests enhanced efficiency in utilizing fixed assets to generate sales, indicating better capital productivity and possibly increased operational effectiveness within the company.
- Total Asset Turnover
- The total asset turnover ratio remains relatively stable across the timeline, fluctuating slightly between 0.30 and 0.36. Beginning at 0.34 in March 2019, it experiences minor dips and recoveries but overall shows a modest enhancement, ending at 0.36 in March 2023. This stability points to consistent efficiency in generating revenues from total assets without significant deterioration or improvement, indicating balanced asset management.
- Equity Turnover
- Equity turnover exhibits an overall increasing pattern from 1.05 in March 2019 to 1.41 in March 2023. Although the ratio experiences some quarter-to-quarter variations, the upward trend is clear, suggesting that the company is generating more sales per unit of shareholder equity over time. This may reflect improved utilization of equity financing or growth in revenue relative to equity, indicating enhanced shareholder value generation.
Net Fixed Asset Turnover
PayPal Holdings Inc., net fixed asset turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net revenues | |||||||||||||||||||||||
| Property and equipment, net | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Net fixed asset turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||
| CrowdStrike Holdings 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. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Net fixed asset turnover
= (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
÷ Property and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenues
- The net revenues exhibited a general upward trend over the observed period. Starting from approximately $4.1 billion in the first quarter of 2019, revenues increased steadily with some fluctuations, reaching a peak near $7.4 billion by the end of 2022. Despite slight decreases in certain quarters, such as early 2020 and early 2023, the overall trajectory indicates consistent growth in net revenues across multiple years.
- Property and Equipment, Net
- The net value of property and equipment demonstrated a gradual decline over the timeframe. Beginning around $1.73 billion in early 2019, this asset value showed a slow and steady decrease to approximately $1.63 billion by early 2023. This downward trend suggests either depreciation outpacing new investments or divestment in physical assets.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio showed a strong upward trend throughout the entire period. Starting at a ratio of 9.18 in the first quarter of 2019, it increased progressively to reach 17.19 by the first quarter of 2023. This significant rise indicates that the company has been generating increasingly higher revenues per unit of net fixed assets, reflecting improved efficiency or better utilization of property and equipment despite its declining book value.
Total Asset Turnover
PayPal Holdings Inc., total asset turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net revenues | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Total asset turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||
| CrowdStrike Holdings 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. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Total asset turnover
= (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenues
- The net revenues exhibit a general upward trend across the analyzed period. Starting at $4,128 million in March 2019, revenues rise steadily with minor fluctuations, reaching a peak of $7,383 million in December 2022. A noticeable increase occurs in 2020, particularly from the second quarter onward, suggesting a positive growth momentum during that time. Despite some quarterly variations, revenues remain elevated through early 2023, with $7,040 million reported in March 2023, slightly below the prior quarter's peak.
- Total Assets
- Total assets demonstrate consistent growth over the observed intervals. From $46,280 million in the first quarter of 2019, assets increase progressively to reach $78,717 million by December 2022. The growth pace moderates thereafter, with a slight decline observed in the first quarter of 2023 to $77,186 million. The upward trajectory indicates ongoing expansion and asset accumulation through most of the period, reflecting either investment, acquisitions, or asset revaluation.
- Total Asset Turnover
- The total asset turnover ratio shows stability with minor fluctuations, starting at 0.34 in early 2019 and ending at 0.36 in the first quarter of 2023. There is a dip around mid-2020, descending to approximately 0.30, but it recovers gradually in subsequent quarters. This ratio indicates that the efficiency of asset utilization to generate revenues remains relatively consistent, with slight improvements toward the end of the period. The overall trend implies that despite asset growth, revenue generation relative to assets has been maintained or marginally enhanced.
- Summary Insights
- The financial data reflects a company experiencing steady revenue growth aligned with increasing asset bases. Although total assets expand significantly, the asset turnover ratio's stability suggests maintained operational efficiency in leveraging assets to create revenue. The peak in net revenues at the end of 2022 followed by a slight decrease in early 2023, coupled with a marginal reduction in total assets, may indicate a period of consolidation or adjustment. The resilience of asset turnover points to effective asset management despite growth and market fluctuations.
Equity Turnover
PayPal Holdings Inc., equity turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net revenues | |||||||||||||||||||||||
| Total PayPal stockholders’ equity | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Equity turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||
| CrowdStrike Holdings 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. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Equity turnover
= (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
÷ Total PayPal stockholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenues
- The net revenues exhibited a general upward trend over the observed periods, increasing from $4,128 million in March 2019 to $7,040 million in March 2023. There were fluctuations within quarterly figures, but the overall progression reveals consistent growth. Notably, revenue saw a dip in early 2020, likely reflective of broader economic challenges during that period, followed by a strong recovery and sustained growth through 2021 and 2022. The highest quarterly revenue appeared in December 2022 at $7,383 million before slightly declining to $7,040 million in the subsequent quarter.
- Total PayPal Stockholders’ Equity
- The total stockholders’ equity increased steadily from $15,157 million in March 2019 to a peak of $22,090 million in September 2021. After this peak, equity values generally declined through 2022 and into early 2023, reaching $19,858 million in March 2023. This indicates some variations potentially linked to market conditions, share buybacks, or other equity transactions but maintains a long-term upward trajectory when comparing the start and end points of the period.
- Equity Turnover Ratio
- The equity turnover ratio showed a progressive increase throughout the period, rising from 1.05 in March 2019 to 1.41 in March 2023. This suggests an improving efficiency in generating revenues from the equity base. The ratio experienced steady gains, especially from mid-2021 onwards, indicating that revenue growth has outpaced the growth or fluctuations in equity, pointing toward enhanced capital utilization.
- Summary of Trends
- Overall, the financial data illustrates a company with solid revenue growth coupled with an expanding yet somewhat fluctuating equity base. The increasing equity turnover ratio reinforces a trend toward greater operational efficiency. The periods of equity reduction in late 2021 through early 2023, alongside rising revenues and turnover, may reflect strategic capital management decisions. These combined trends suggest the company is managing to leverage its equity effectively to generate growing revenues over time.