Stock Analysis on Net

PayPal Holdings Inc. (NASDAQ:PYPL)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

PayPal Holdings Inc., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Turnover Ratios
Receivables turnover 37.18 40.86 49.36 46.27 50.66
Payables turnover 45.45 42.18 29.40 26.05 29.69
Working capital turnover 1.71 1.54 2.19 1.34 1.22
Average No. Days
Average receivable collection period 10 9 7 8 7
Average payables payment period 8 9 12 14 12

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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.