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PayPal Holdings (PayPal Holdings) Asset Turnover : 0.10 (As of Dec. 2023)


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What is PayPal Holdings Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. PayPal Holdings's Revenue for the three months ended in Dec. 2023 was $8,026 Mil. PayPal Holdings's Total Assets for the quarter that ended in Dec. 2023 was $79,303 Mil. Therefore, PayPal Holdings's Asset Turnover for the quarter that ended in Dec. 2023 was 0.10.

Asset Turnover is linked to ROE % through Du Pont Formula. PayPal Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was 27.50%. It is also linked to ROA % through Du Pont Formula. PayPal Holdings's annualized ROA % for the quarter that ended in Dec. 2023 was 7.07%.


PayPal Holdings Asset Turnover Historical Data

The historical data trend for PayPal Holdings's Asset Turnover 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 Asset Turnover Chart

PayPal Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.38 0.35 0.35 0.36 0.37

PayPal Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Asset Turnover 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 0.10 0.09 0.10 0.10 0.10

Competitive Comparison of PayPal Holdings's Asset Turnover

For the Credit Services subindustry, PayPal Holdings's Asset Turnover, along with its competitors' market caps and Asset Turnover 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 Asset Turnover Distribution in the Credit Services Industry

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

* The bar in red indicates where PayPal Holdings's Asset Turnover falls into.



PayPal Holdings Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

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

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=29771/( (78624+82166)/ 2 )
=29771/80395
=0.37

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

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=8026/( (76440+82166)/ 2 )
=8026/79303
=0.10

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


PayPal Holdings  (NAS:PYPL) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

PayPal Holdings's annulized ROE % for the quarter that ended in Dec. 2023 is

ROE %**(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=5608/20395.5
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(5608 / 32104)*(32104 / 79303)*(79303/ 20395.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=17.47 %*0.4048*3.8883
=ROA %*Equity Multiplier
=7.07 %*3.8883
=27.50 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

PayPal Holdings's annulized ROA % for the quarter that ended in Dec. 2023 is

ROA %(Q: Dec. 2023 )
=Net Income/Total Assets
=5608/79303
=(Net Income / Revenue)*(Revenue / Total Assets)
=(5608 / 32104)*(32104 / 79303)
=Net Margin %*Asset Turnover
=17.47 %*0.4048
=7.07 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* 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.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


PayPal Holdings Asset Turnover Related Terms

Thank you for viewing the detailed overview of PayPal Holdings's Asset Turnover 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