Unit 5: Individual Assignment – Ratio Analysis
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PayPalRatiosweek2.xlsRatios
| 2013 | 2014 | 2015 | FORMULA | ||
| PROFITABILITY RATIOS | |||||
| PYPL GROSS MARGIN | 65.26% | 64.91% | 63.03% | Gross Profit / Sales | |
| PYPL OPERATION MARGIN | -49.04% | -49.11% | -46.71% | Operating Earnings/Sales Revenue | |
| PYPL NETPROFIT MARGIN | 14.20% | 5.22% | 13.28% | Net Profit / Total Revenue | |
| LIQUIDITY RATIO | |||||
| PYPL CURRENT RATIO | 1.24 | 1.29 | 1.37 | Current Assets / Current Liabilities | |
| PYPL CASH RATIO | 0.17 | 0.17 | 0.25 | (Cash and cash equivalents + Marketable securities) ÷ Current liabilities | |
| LEVERAGE RATIOS | |||||
| PYPL DEBT TO EQUITY | 1.59 | 1.66 | 1.10 | Total Liabilities/Shareholder Equity | |
| OPERATION RETURNS | |||||
| PYPL ROE | 12.92% | 5.08% | 8.93% | Net Income / Shareholders’ Equity | |
| PYPL ROA | 4.98% | 1.91% | 4.25% | Net Income / Total Assets |
Income Statement
| PYPL_income-statement_Annual_As_Originally_Reported | 2013 | 2014 | 2015 |
| Gross Profit | 4,390,000,000 | 5,209,000,000 | 5,829,000,000 |
| Total Revenue | 6,727,000,000 | 8,025,000,000 | 9,248,000,000 |
| Business Revenue | 6,727,000,000 | 8,025,000,000 | 9,248,000,000 |
| Cost of Revenue | -2,337,000,000 | -2,816,000,000 | -3,419,000,000 |
| Cost of Goods and Services | -2,337,000,000 | -2,816,000,000 | -3,419,000,000 |
| Other Cost of Revenue | |||
| Operating Income/Expenses | -3,299,000,000 | -3,941,000,000 | -4,320,000,000 |
| Selling, General and Administrative Expenses | -2,119,000,000 | -2,535,000,000 | -2,765,000,000 |
| General and Administrative Expenses | -1,328,000,000 | -1,537,000,000 | -1,780,000,000 |
| Selling and Marketing Expenses | -791,000,000 | -998,000,000 | -985,000,000 |
| Research and Development Expenses | -727,000,000 | -890,000,000 | -947,000,000 |
| Depreciation, Amortization and Depletion | -453,000,000 | -516,000,000 | -608,000,000 |
| Depreciation and Amortization | -453,000,000 | -516,000,000 | -608,000,000 |
| Total Operating Profit/Loss | 1,091,000,000 | 1,268,000,000 | 1,509,000,000 |
| Non-Operating Income/Expenses, Total | -7,000,000 | -7,000,000 | -21,000,000 |
| Total Net Finance Income/Expense | |||
| Net Interest Income/Expense | |||
| Interest Expense Net of Capitalized Interest | |||
| Interest Income | |||
| Net Investment Income | |||
| Gain/Loss on Investments and Other Financial Instruments | |||
| Irregular Income/Expenses | 0 | 0 | -48,000,000 |
| Restructuring and Reorganization Income/Expense | 0 | 0 | -48,000,000 |
| Other Income/Expense, Non-Operating | -7,000,000 | -7,000,000 | 27,000,000 |
| Pretax Income | 1,084,000,000 | 1,261,000,000 | 1,488,000,000 |
| Provision for Income Tax | -129,000,000 | -842,000,000 | -260,000,000 |
| Net Income from Continuing Operations | 955,000,000 | 419,000,000 | 1,228,000,000 |
| Net Income after Extraordinary Items and Discontinued Operations | 955,000,000 | 419,000,000 | 1,228,000,000 |
| Net Income after Non-Controlling/Minority Interests | 955,000,000 | 419,000,000 | 1,228,000,000 |
| Net Income Available to Common Stockholders | 955,000,000 | 419,000,000 | 1,228,000,000 |
| Diluted Net Income Available to Common Stockholders | 955,000,000 | 419,000,000 | 1,228,000,000 |
| Total Revenue as Reported, Supplemental | 6,727,000,000 | 8,025,000,000 | 9,248,000,000 |
| Operating Expense as Reported, Supplemental | -5,636,000,000 | -6,757,000,000 | -7,787,000,000 |
| Total Operating Profit/Loss as Reported, Supplemental | 1,091,000,000 | 1,268,000,000 | 1,461,000,000 |
| Reported Effective Tax Rate | 0.119 | 0.67 | 0.175 |
| Reported Normalized Income | 1,186,000,000 | 1,343,000,000 | 1,588,000,000 |
| Reported Normalized Operating Profit | 1,411,000,000 | 1,648,000,000 | 1,975,000,000 |
| Basic EPS | 0.31 | 1.00 | |
| Basic EPS from Continuing Operations | 0.31 | 1.00 | |
| Diluted EPS | 0.31 | 1.00 | |
| Diluted EPS from Continuing Operations | 0.31 | 1.00 | |
| Basic Weighted Average Shares Outstanding | 1,251,000,000 | 1,222,000,000 | |
| Diluted Weighted Average Shares Outstanding | 1,262,000,000 | 1,229,000,000 | |
| Reported Normalized Diluted EPS | 1.10 | 1.29 | |
| Basic EPS | 0.31 | 1.00 | |
| Diluted EPS | 0.31 | 1.00 | |
| Basic WASO | 1,251,000,000 | 1,222,000,000 | |
| Diluted WASO | 1,262,000,000 | 1,229,000,000 | |
| Fiscal year ends in Dec 31 | USD |
Balance Sheet
| PYPL_balance-sheet_Annual_As_Originally_Reported | 2013 | 2014 | 2015 |
| Total Assets | 19,160,000,000 | 21,917,000,000 | 28,881,000,000 |
| Total Current Assets | 14,620,000,000 | 17,565,000,000 | 20,648,000,000 |
| Cash, Cash Equivalents and Short Term Investments | 1,925,000,000 | 2,230,000,000 | 3,411,000,000 |
| Cash and Cash Equivalents | 1,604,000,000 | 2,201,000,000 | 1,393,000,000 |
| Short Term Investments | 321,000,000 | 29,000,000 | 2,018,000,000 |
| Trade and Other Receivables, Current | 12,428,000,000 | 14,957,000,000 | 16,582,000,000 |
| Trade/Accounts Receivable, Current | 9,329,000,000 | 10,677,000,000 | 12,398,000,000 |
| Loans Receivable, Current | 2,789,000,000 | 3,586,000,000 | 4,184,000,000 |
| Notes Receivable, Current | 310,000,000 | 694,000,000 | 0 |
| Prepayments and Deposits, Current | 655,000,000 | ||
| Other Current Assets | 267,000,000 | 378,000,000 | |
| Total Non-Current Assets | 4,540,000,000 | 4,352,000,000 | 8,233,000,000 |
| Net Property, Plant and Equipment | 858,000,000 | 922,000,000 | 1,344,000,000 |
| Gross Property, Plant and Equipment | 2,403,000,000 | 2,862,000,000 | 3,849,000,000 |
| Properties | 328,000,000 | 348,000,000 | 649,000,000 |
| Land and Improvements | 162,000,000 | 162,000,000 | 352,000,000 |
| Leasehold and Improvements | 166,000,000 | 186,000,000 | |
| Buildings and Improvements | 297,000,000 | ||
| Machinery, Furniture and Equipment | 1,983,000,000 | 2,350,000,000 | 3,067,000,000 |
| Furniture, Fixtures and Office Equipment | 1,983,000,000 | 2,350,000,000 | 3,067,000,000 |
| Construction in Progress and Advance Payments | 92,000,000 | 164,000,000 | 133,000,000 |
| Accumulated Depreciation and Impairment | -1,545,000,000 | -1,940,000,000 | -2,505,000,000 |
| Accumulated Depreciation | -1,545,000,000 | -1,940,000,000 | -2,505,000,000 |
| Net Intangible Assets | 3,445,000,000 | 3,345,000,000 | 4,427,000,000 |
| Gross Goodwill and Other Intangible Assets | 4,185,000,000 | 4,162,000,000 | 5,359,000,000 |
| Goodwill | 3,187,000,000 | 3,189,000,000 | 4,069,000,000 |
| Intangibles other than Goodwill | 998,000,000 | 973,000,000 | 1,290,000,000 |
| Software and Technology | 169,000,000 | 167,000,000 | 245,000,000 |
| Other Intangible Assets | 829,000,000 | 806,000,000 | 1,045,000,000 |
| Accumulated Amortization and Impairment | -740,000,000 | -817,000,000 | -932,000,000 |
| Accumulated Amortization of Intangible Assets | -740,000,000 | -817,000,000 | -932,000,000 |
| Accumulated Amortization of Intangibles other than Goodwill | -740,000,000 | -817,000,000 | -932,000,000 |
| Accumulated Amortization of Software and Technology | -136,000,000 | -153,000,000 | -176,000,000 |
| Accumulated Amortization of Other Intangible Assets | -604,000,000 | -664,000,000 | -756,000,000 |
| Total Long Term Investments | 196,000,000 | 31,000,000 | 2,348,000,000 |
| Other Non-Current Assets | 41,000,000 | 54,000,000 | 114,000,000 |
| Total Liabilities | 11,770,000,000 | 13,669,000,000 | 15,122,000,000 |
| Total Current Liabilities | 11,261,000,000 | 13,283,000,000 | 13,617,000,000 |
| Payables and Accrued Expenses, Current | 10,158,000,000 | 12,190,000,000 | 13,617,000,000 |
| Trade and Other Payables, Current | 9,387,000,000 | 10,756,000,000 | 12,438,000,000 |
| Trade/Accounts Payable, Current | 9,350,000,000 | 10,727,000,000 | 12,406,000,000 |
| Taxes Payable, Current | 37,000,000 | 29,000,000 | 32,000,000 |
| Accrued Expenses, Current | 771,000,000 | 1,434,000,000 | 1,179,000,000 |
| Financial Liabilities, Current | 1,103,000,000 | 1,093,000,000 | 0 |
| Current Debt and Capital Lease Obligation | 1,103,000,000 | 1,093,000,000 | 0 |
| Current Debt | 1,103,000,000 | 1,093,000,000 | 0 |
| Notes Payable, Current Debt | 1,103,000,000 | 1,093,000,000 | 0 |
| Total Non-Current Liabilities | 509,000,000 | 386,000,000 | 1,505,000,000 |
| Financial Liabilities, Non-Current | 509,000,000 | 386,000,000 | |
| Long Term Debt and Capital Lease Obligation | 509,000,000 | 386,000,000 | |
| Long Term Debt | 509,000,000 | 386,000,000 | |
| Tax Liabilities, Non-Current | 1,505,000,000 | ||
| Deferred Tax Liabilities, Non-Current | 1,505,000,000 | ||
| Total Equity | 7,390,000,000 | 8,248,000,000 | 13,759,000,000 |
| Equity Attributable to Parent Stockholders | 7,390,000,000 | 8,248,000,000 | 13,759,000,000 |
| Paid in Capital | 13,100,000,000 | ||
| Capital Stock | 13,100,000,000 | ||
| Common Stock | 0 | ||
| Preferred Stock | |||
| Additional Paid in Capital/Share Premium | 13,100,000,000 | ||
| Treasury Stock | |||
| Retained Earnings/Accumulated Deficit | 668,000,000 | ||
| Reserves/Accumulated Comprehensive Income/Losses | -61,000,000 | 110,000,000 | -9,000,000 |
| Other Equity Interest | 7,451,000,000 | 8,138,000,000 | 0 |
| Non-Controlling/Minority Interests | |||
| Debt Maturity Schedule Total | |||
| Debt due in Year 1 | |||
| Debt due in Year 2 | |||
| Debt due in Year 3 | |||
| Debt due in Year 4 | |||
| Debt due in Year 5 | |||
| Debt due Beyond | |||
| Debt - Interests Charges and Other Adjustments | |||
| Operating Lease Obligation Maturity Schedule Total | |||
| Operating Lease due in Year 1 | |||
| Operating Lease due in Year 2 | |||
| Operating Lease due in Year 3 | |||
| Operating Lease due in Year 4 | |||
| Operating Lease due in Year 5 | |||
| Operating Lease due Beyond | |||
| Operating Lease - Interests Charges and Other Adjustments | |||
| Other Contractual Obligations Maturity Schedule Total | |||
| Other Contractual Obligations due in Year 1 | |||
| Other Contractual Obligations due in Year 2 | |||
| Other Contractual Obligations due in Year 3 | |||
| Other Contractual Obligations due in Year 4 | |||
| Other Contractual Obligations due in Year 5 | |||
| Other Contractual Obligations due Beyond | |||
| Total Lease Liability | |||
| Total Lease Liability �C Due in year 1 | |||
| Total Lease Liability �C Due in year 2 | |||
| Total Lease Liability �C Due in year 3 | |||
| Total Lease Liability �C Due in year 4 | |||
| Total Lease Liability �C Due in year 5 | |||
| Total Lease Liability �C Beyond | |||
| Total Lease Liability �C Interest Charges and Other Adjustments | |||
| Total Contractual Obligations | |||
| Total Contractual Obligations due in year 1 | |||
| Total Contractual Obligations due in year 2 | |||
| Total Contractual Obligations due in year 3 | |||
| Total Contractual Obligations due in year 4 | |||
| Total Contractual Obligations due in year 5 | |||
| Total Contractual Obligations due Beyond | |||
| Total Contractual Obligations - Interests Charges and Other Adjustments | |||
| Fiscal year ends in Dec 31 | USD |
Cash Flows
| PYPL_cash-flow_Annual_As_Originally_Reported | 2013 | 2014 | 2015 |
| Cash Flow from Operating Activities, Indirect | 1,993,000,000 | 2,220,000,000 | 2,546,000,000 |
| Net Cash Flow from Continuing Operating Activities, Indirect | 1,993,000,000 | 2,220,000,000 | 2,546,000,000 |
| Cash Generated from Operating Activities | 1,993,000,000 | 2,220,000,000 | 2,546,000,000 |
| Income/Loss before Non-Cash Adjustment | 955,000,000 | 419,000,000 | 1,228,000,000 |
| Total Adjustments for Non-Cash Items | 1,184,000,000 | 2,100,000,000 | 1,824,000,000 |
| Depreciation, Amortization and Depletion, Non-Cash Adjustment | 453,000,000 | 516,000,000 | 608,000,000 |
| Depreciation and Amortization, Non-Cash Adjustment | 453,000,000 | 516,000,000 | 608,000,000 |
| Stock-Based Compensation, Non-Cash Adjustment | 253,000,000 | 299,000,000 | 346,000,000 |
| Taxes, Non-Cash Adjustment | 52,000,000 | 680,000,000 | 127,000,000 |
| Other Provisions, Non-Cash Adjustment | 502,000,000 | 646,000,000 | 809,000,000 |
| Net Investment Income/Loss, Non-Cash Adjustment | |||
| Gain/Loss on Financial Instruments, Non-Cash Adjustment | |||
| Unrealized Gain/Loss on Financial Instruments, Non-Cash Adjustment | |||
| Other Non-Cash Items | |||
| Excess Tax Benefit from Stock-Based Compensation, Non-Cash Adjustment | -76,000,000 | -41,000,000 | -26,000,000 |
| Irregular Income/Loss, Non-Cash Adjustment | 0 | -40,000,000 | |
| Gain/Loss on Disposals, Non-Cash Adjustment | 0 | -40,000,000 | |
| Gain/Loss on Disposal/Sale of Other Assets, Non-Cash Adjustment | 0 | -40,000,000 | |
| Changes in Operating Capital | -146,000,000 | -299,000,000 | -506,000,000 |
| Change in Trade and Other Receivables | 80,000,000 | -37,000,000 | 113,000,000 |
| Change in Trade/Accounts Receivable | 1,000,000 | -13,000,000 | -22,000,000 |
| Change in Loans Receivable | 0 | 14,000,000 | |
| Change in Other Receivables | 79,000,000 | 121,000,000 | |
| Change in Notes Receivable | -24,000,000 | ||
| Change in Other Current Assets | -62,000,000 | -384,000,000 | |
| Change in Payables and Accrued Expenses | 71,000,000 | -223,000,000 | -165,000,000 |
| Change in Trade and Other Payables | 71,000,000 | 77,000,000 | -165,000,000 |
| Change in Trade/Accounts Payable | -13,000,000 | 42,000,000 | 12,000,000 |
| Change in Taxes Payable | 41,000,000 | 37,000,000 | 40,000,000 |
| Change in Other Payables | 43,000,000 | -217,000,000 | |
| Change in Trade Notes Payable | -2,000,000 | ||
| Change in Accrued Expenses | -300,000,000 | ||
| Change in Other Current Liabilities | 69,000,000 | 423,000,000 | |
| Change in Other Operating Capital | -304,000,000 | -39,000,000 | -493,000,000 |
| Cash Flow from Investing Activities | -1,721,000,000 | -1,546,000,000 | -6,389,000,000 |
| Cash Flow from Continuing Investing Activities | -1,721,000,000 | -1,546,000,000 | -6,389,000,000 |
| Payment for Loan Granted and Repayments Received, Net | -793,000,000 | -1,023,000,000 | -819,000,000 |
| Purchase/Sale and Disposal of Property, Plant and Equipment, Net | -391,000,000 | -492,000,000 | -696,000,000 |
| Purchase of Property, Plant and Equipment | -391,000,000 | -492,000,000 | -722,000,000 |
| Sale and Disposal of Property, Plant and Equipment | 0 | 26,000,000 | |
| Purchase/Sale of Business, Net | -731,000,000 | -2,000,000 | -1,225,000,000 |
| Purchase/Acquisition of Business | -731,000,000 | -2,000,000 | -1,225,000,000 |
| Purchase/Sale of Investments, Net | -290,000,000 | 333,000,000 | -4,224,000,000 |
| Purchase of Investments | -610,000,000 | -76,000,000 | -7,542,000,000 |
| Sale of Investments | 320,000,000 | 409,000,000 | 3,318,000,000 |
| Purchase/Sale of Other Non-Current Assets, Net | |||
| Other Investing Cash Flow | 484,000,000 | -362,000,000 | 575,000,000 |
| Cash Flow from Financing Activities | -85,000,000 | -51,000,000 | 3,079,000,000 |
| Cash Flow from Continuing Financing Activities | -85,000,000 | -51,000,000 | 3,079,000,000 |
| Issuance of/Payments for Common Stock, Net | 0 | 75,000,000 | |
| Proceeds from Issuance of Common Stock | 0 | 75,000,000 | |
| Payments for Common Stock | |||
| Issuance of/Repayments for Debt, Net | -133,000,000 | -21,000,000 | -862,000,000 |
| Issuance of/Repayments for Long Term Debt, Net | -21,000,000 | ||
| Proceeds from Issuance of Long Term Debt | |||
| Repayments for Long Term Debt | |||
| Issuance of/Repayments for Short Term Debt, Net | -133,000,000 | -862,000,000 | |
| Repayments for Short Term Debt | -133,000,000 | -862,000,000 | |
| Other Financing Cash Flow | 0 | 0 | -18,000,000 |
| Excess Tax Benefit from Share-Based Compensation, Financing Activities | 76,000,000 | 41,000,000 | 26,000,000 |
| Net Movement in Non-Controlling/Minority Interest | -28,000,000 | -71,000,000 | 3,858,000,000 |
| Cash and Cash Equivalents, End of Period | 1,604,000,000 | 2,201,000,000 | 1,393,000,000 |
| Change in Cash | 187,000,000 | 623,000,000 | -764,000,000 |
| Effect of Exchange Rate Changes | 3,000,000 | -26,000,000 | -44,000,000 |
| Cash and Cash Equivalents, Beginning of Period | 1,414,000,000 | 1,604,000,000 | 2,201,000,000 |
| Change in Cash as Reported, Supplemental | 190,000,000 | 597,000,000 | -808,000,000 |
| Income Tax Paid, Supplemental | -28,000,000 | -47,000,000 | -216,000,000 |
| Interest Paid, Supplemental | -14,000,000 | -19,000,000 | -16,000,000 |
| Fiscal year ends in Dec 31 | USD |
