GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » PayPal Holdings Inc (NAS:PYPL) » Definitions » Gross Profit

PayPal Holdings (PayPal Holdings) Gross Profit : $13,704 Mil (TTM As of Dec. 2023)


View and export this data going back to 2015. Start your Free Trial

What is PayPal Holdings Gross Profit?

PayPal Holdings's gross profit for the three months ended in Dec. 2023 was $3,672 Mil. PayPal Holdings's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $13,704 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. PayPal Holdings's gross profit for the three months ended in Dec. 2023 was $3,672 Mil. PayPal Holdings's Revenue for the three months ended in Dec. 2023 was $8,026 Mil. Therefore, PayPal Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 45.75%.

PayPal Holdings had a gross margin of 45.75% for the quarter that ended in Dec. 2023 => Durable competitive advantage

During the past 12 years, the highest Gross Margin % of PayPal Holdings was 64.91%. The lowest was 46.03%. And the median was 55.40%.

Warning Sign:

PayPal Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -3.3%.


PayPal Holdings Gross Profit Historical Data

The historical data trend for PayPal Holdings's Gross Profit can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PayPal Holdings Gross Profit Chart

PayPal Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Profit
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9,602.00 11,779.00 13,996.00 13,773.00 13,704.00

PayPal Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Profit Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3,671.00 3,315.00 3,348.00 3,369.00 3,672.00

Competitive Comparison of PayPal Holdings's Gross Profit

For the Credit Services subindustry, PayPal Holdings's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


PayPal Holdings's Gross Profit Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, PayPal Holdings's Gross Profit distribution charts can be found below:

* The bar in red indicates where PayPal Holdings's Gross Profit falls into.



PayPal Holdings Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

PayPal Holdings's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as

Gross Profit (A: Dec. 2023 )=Revenue - Cost of Goods Sold
=29771 - 16067
=13,704

PayPal Holdings's Gross Profit for the quarter that ended in Dec. 2023 is calculated as

Gross Profit (Q: Dec. 2023 )=Revenue - Cost of Goods Sold
=8026 - 4354
=3,672

Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $13,704 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

PayPal Holdings's Gross Margin % for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=(Revenue - Cost of Goods Sold) / Revenue
=3,672 / 8026
=45.75 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


PayPal Holdings  (NAS:PYPL) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

PayPal Holdings had a gross margin of 45.75% for the quarter that ended in Dec. 2023 => Durable competitive advantage


PayPal Holdings Gross Profit Related Terms

Thank you for viewing the detailed overview of PayPal Holdings's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.


PayPal Holdings (PayPal Holdings) Business Description

Address
2211 North First Street, San Jose, CA, USA, 95131
PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 435 million active accounts at the end of 2022. The company also owns Venmo, a person-to-person payment platform.
Executives
Peggy Alford officer: EVP, Global Sales 435 TASSO STREET, PALO ALTO CA 94301
Jonathan Auerbach officer: SVP, Strategy & Growth Off. C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
James Alexander Chriss director, officer: President and CEO C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Gabrielle Scheibe officer: See Remarks 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Daniel H Schulman director, officer: President and Chief Executive C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
John C. Kim officer: EVP, Chief Product Officer C/O OWLET, INC., 2500 EXECUTIVE PARKWAY, SUITE 500, LEHI UT 84043
Blake J Jorgensen officer: EVP, Chief Financial Officer 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Mark Britto officer: EVP, Global Sales and Credit C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Enrique Lores director 3000 HANOVER STREET, PALO ALTO CA 94304
Frank D Yeary director C/O INTEL CORPORATION, 2200 MISSION COLLEGE BLVD., RN4-151, SANTA CLARA CA 95054
David W Dorman director CVS HEALTH., ONE CVS DRIVE, WOONSOCKET RI 02895
Jeffrey William Karbowski officer: VP, Chief Accounting Officer 121 ALBRIGHT WAY, LOS GATOS CA 95032
John J Donahoe director C/O PAYPAL HOLDINGS INC, 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Adele Louise Pentland officer: SVP, Gen. Counsel & Secretary C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
John D Rainey officer: CFO and EVP, Global Cust Oper C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131