Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
PayPal Holdings Inc., short-term (operating) activity ratios
Based on: 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), 10-K (reporting date: 2016-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | PayPal Holdings Inc. receivables turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | PayPal Holdings Inc. payables turnover ratio increased from 2018 to 2019 and from 2019 to 2020. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | PayPal Holdings Inc. working capital turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | PayPal Holdings Inc. number of days of receivables outstanding deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | PayPal Holdings Inc. number of days of payables outstanding decreased from 2018 to 2019 and from 2019 to 2020. |
Receivables Turnover
PayPal Holdings Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | 21,454 | 17,772 | 15,451 | 13,094 | 10,842 | |
| Accounts receivable, net | 577 | 435 | 313 | 283 | 214 | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 37.18 | 40.86 | 49.36 | 46.27 | 50.66 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Accenture PLC | 6.16 | 5.79 | 8.33 | 8.05 | 8.55 | |
| Adobe Inc. | 9.20 | 7.28 | 6.86 | 5.99 | 7.03 | |
| Autodesk Inc. | 5.02 | 5.42 | 4.69 | 4.49 | 3.83 | |
| Automatic Data Processing Inc. | 5.98 | 5.81 | 6.72 | 7.27 | 6.69 | |
| Fidelity National Information Services Inc. | 18.96 | 15.97 | 29.98 | 31.35 | 52.81 | |
| Fiserv Inc. | 5.98 | 3.66 | 5.55 | 5.71 | 6.10 | |
| International Business Machines Corp. | 10.32 | 9.80 | 10.71 | 8.86 | 8.70 | |
| Intuit Inc. | 51.54 | 77.98 | 60.86 | 50.26 | 43.46 | |
| Mastercard Inc. | 8.97 | 5.64 | 6.10 | 9.09 | 9.86 | |
| Microsoft Corp. | 4.47 | 4.26 | 4.17 | 4.54 | 4.67 | |
| Oracle Corp. | 7.04 | 7.69 | 7.55 | 7.12 | 6.88 | |
| salesforce.com inc. | 2.77 | 2.70 | 2.68 | 2.63 | 2.67 | |
| ServiceNow Inc. | 4.48 | 4.14 | 4.54 | 4.44 | 4.31 | |
| Visa Inc. | 17.28 | 7.54 | 13.03 | 12.91 | 10.28 | |
| Receivables Turnover, Sector | ||||||
| Software & Services | 6.34 | 5.92 | 6.53 | 6.78 | 6.85 | |
| Receivables Turnover, Industry | ||||||
| Information Technology | 8.34 | 7.61 | 7.94 | 8.34 | 8.64 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Receivables turnover = Net revenues ÷ Accounts receivable, net
= 21,454 ÷ 577 = 37.18
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | PayPal Holdings Inc. receivables turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Payables Turnover
PayPal Holdings Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 11,453 | 9,785 | 8,262 | 6,695 | 5,701 | |
| Accounts payable | 252 | 232 | 281 | 257 | 192 | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 45.45 | 42.18 | 29.40 | 26.05 | 29.69 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Accenture PLC | 22.48 | 18.16 | 21.62 | 16.87 | 19.14 | |
| Adobe Inc. | 5.63 | 7.98 | 6.42 | 8.90 | 9.31 | |
| Autodesk Inc. | 3.88 | 2.81 | 3.20 | 3.66 | 3.09 | |
| Automatic Data Processing Inc. | 82.80 | 64.44 | 57.92 | 48.56 | 44.91 | |
| Fidelity National Information Services Inc. | 1.69 | 1.56 | 5.73 | 6.51 | 8.73 | |
| Fiserv Inc. | 17.88 | 13.54 | 24.17 | 37.80 | 26.90 | |
| International Business Machines Corp. | 7.75 | 8.30 | 6.50 | 6.65 | 6.70 | |
| Intuit Inc. | 4.52 | 4.26 | 5.49 | 5.15 | 4.09 | |
| Mastercard Inc. | 10.37 | 6.22 | 6.83 | 9.31 | 11.39 | |
| Microsoft Corp. | 3.68 | 4.57 | 4.45 | 4.64 | 4.75 | |
| Oracle Corp. | 12.46 | 13.78 | 15.28 | 12.47 | 14.84 | |
| salesforce.com inc. | — | — | — | — | — | |
| ServiceNow Inc. | 28.83 | 15.04 | 20.26 | 15.56 | 10.47 | |
| Visa Inc. | 12.58 | 5.76 | 9.51 | 9.17 | 7.24 | |
| Payables Turnover, Sector | ||||||
| Software & Services | 7.02 | 6.89 | 7.88 | 8.01 | 8.09 | |
| Payables Turnover, Industry | ||||||
| Information Technology | 5.58 | 5.29 | 4.93 | 4.98 | 5.65 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 11,453 ÷ 252 = 45.45
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | PayPal Holdings Inc. payables turnover ratio increased from 2018 to 2019 and from 2019 to 2020. |
Working Capital Turnover
PayPal Holdings Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 50,995 | 38,495 | 32,963 | 32,645 | 25,733 | |
| Less: Current liabilities | 38,447 | 26,919 | 25,904 | 22,863 | 16,878 | |
| Working capital | 12,548 | 11,576 | 7,059 | 9,782 | 8,855 | |
| Net revenues | 21,454 | 17,772 | 15,451 | 13,094 | 10,842 | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 1.71 | 1.54 | 2.19 | 1.34 | 1.22 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Accenture PLC | 8.71 | 9.85 | 12.12 | 16.17 | 11.23 | |
| Adobe Inc. | 4.89 | — | 16.24 | 1.96 | 1.93 | |
| Autodesk Inc. | — | — | — | 7.38 | 1.79 | |
| Automatic Data Processing Inc. | 10.15 | 8.27 | 8.14 | 4.35 | 3.19 | |
| Fidelity National Information Services Inc. | — | — | 13.85 | — | 8.17 | |
| Fiserv Inc. | 25.52 | 7.72 | 27.21 | 153.95 | — | |
| International Business Machines Corp. | — | 107.30 | 7.29 | 6.40 | 10.50 | |
| Intuit Inc. | 1.73 | 4.17 | 20.71 | — | — | |
| Mastercard Inc. | 2.11 | 3.38 | 3.27 | 2.50 | 1.79 | |
| Microsoft Corp. | 1.30 | 1.19 | 0.99 | 0.94 | 1.06 | |
| Oracle Corp. | 1.12 | 1.42 | 0.70 | 0.75 | 0.79 | |
| salesforce.com inc. | 15.29 | — | — | — | — | |
| ServiceNow Inc. | 5.76 | 46.69 | 7.86 | 6.24 | 5.13 | |
| Visa Inc. | 1.66 | 3.04 | 2.98 | 2.03 | 2.41 | |
| Working Capital Turnover, Sector | ||||||
| Software & Services | 2.35 | 2.54 | 1.87 | 1.79 | 1.93 | |
| Working Capital Turnover, Industry | ||||||
| Information Technology | 2.92 | 3.13 | 2.85 | 2.15 | 2.37 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Working capital turnover = Net revenues ÷ Working capital
= 21,454 ÷ 12,548 = 1.71
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | PayPal Holdings Inc. working capital turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Average Receivable Collection Period
PayPal Holdings Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 37.18 | 40.86 | 49.36 | 46.27 | 50.66 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 10 | 9 | 7 | 8 | 7 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Accenture PLC | 59 | 63 | 44 | 45 | 43 | |
| Adobe Inc. | 40 | 50 | 53 | 61 | 52 | |
| Autodesk Inc. | 73 | 67 | 78 | 81 | 95 | |
| Automatic Data Processing Inc. | 61 | 63 | 54 | 50 | 55 | |
| Fidelity National Information Services Inc. | 19 | 23 | 12 | 12 | 7 | |
| Fiserv Inc. | 61 | 100 | 66 | 64 | 60 | |
| International Business Machines Corp. | 35 | 37 | 34 | 41 | 42 | |
| Intuit Inc. | 7 | 5 | 6 | 7 | 8 | |
| Mastercard Inc. | 41 | 65 | 60 | 40 | 37 | |
| Microsoft Corp. | 82 | 86 | 88 | 80 | 78 | |
| Oracle Corp. | 52 | 47 | 48 | 51 | 53 | |
| salesforce.com inc. | 132 | 135 | 136 | 139 | 137 | |
| ServiceNow Inc. | 82 | 88 | 80 | 82 | 85 | |
| Visa Inc. | 21 | 48 | 28 | 28 | 36 | |
| Average Receivable Collection Period, Sector | ||||||
| Software & Services | 58 | 62 | 56 | 54 | 53 | |
| Average Receivable Collection Period, Industry | ||||||
| Information Technology | 44 | 48 | 46 | 44 | 42 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 37.18 = 10
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | PayPal Holdings Inc. number of days of receivables outstanding deteriorated from 2018 to 2019 and from 2019 to 2020. |
Average Payables Payment Period
PayPal Holdings Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 45.45 | 42.18 | 29.40 | 26.05 | 29.69 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 8 | 9 | 12 | 14 | 12 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Accenture PLC | 16 | 20 | 17 | 22 | 19 | |
| Adobe Inc. | 65 | 46 | 57 | 41 | 39 | |
| Autodesk Inc. | 94 | 130 | 114 | 100 | 118 | |
| Automatic Data Processing Inc. | 4 | 6 | 6 | 8 | 8 | |
| Fidelity National Information Services Inc. | 216 | 233 | 64 | 56 | 42 | |
| Fiserv Inc. | 20 | 27 | 15 | 10 | 14 | |
| International Business Machines Corp. | 47 | 44 | 56 | 55 | 54 | |
| Intuit Inc. | 81 | 86 | 66 | 71 | 89 | |
| Mastercard Inc. | 35 | 59 | 53 | 39 | 32 | |
| Microsoft Corp. | 99 | 80 | 82 | 79 | 77 | |
| Oracle Corp. | 29 | 26 | 24 | 29 | 25 | |
| salesforce.com inc. | — | — | — | — | — | |
| ServiceNow Inc. | 13 | 24 | 18 | 23 | 35 | |
| Visa Inc. | 29 | 63 | 38 | 40 | 50 | |
| Average Payables Payment Period, Sector | ||||||
| Software & Services | 52 | 53 | 46 | 46 | 45 | |
| Average Payables Payment Period, Industry | ||||||
| Information Technology | 65 | 69 | 74 | 73 | 65 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 45.45 = 8
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | PayPal Holdings Inc. number of days of payables outstanding decreased from 2018 to 2019 and from 2019 to 2020. |