PayPal Holdings (NAS:PYPL) Cash Flow from Operations

For companies reported in indirect method, cash flow from operations contains six items:

1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.

PayPal Holdings's net income from continuing operations for the three months ended in Sep. 2023 was $1,020 Mil.

2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
The term depreciation is used when discussing man made tangible assets
The term depletion is used when discussing natural tangible assets
The term amortization is used when discussing intangible assets

PayPal Holdings's depreciation, depletion and amortization for the three months ended in Sep. 2023 was $270 Mil.

3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.

PayPal Holdings's change in working capital for the three months ended in Sep. 2023 was $247 Mil. It means PayPal Holdings's working capital increased by $247 Mil from Jun. 2023 to Sep. 2023 .

4. Deferred Tax:
It is the cash flow generated from deferred tax.

PayPal Holdings's cash flow from deferred tax for the three months ended in Sep. 2023 was $-293 Mil.

5. Cash from Discontinued Operating Activities:
Net cash from all of the entity's discontinued operating activities.

PayPal Holdings's cash from discontinued operating Activities for the three months ended in Sep. 2023 was $0 Mil.

6. Asset Impairment Charge:
It is the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value.

PayPal Holdings's asset impairment charge for the three months ended in Sep. 2023 was $0 Mil.

7. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.

PayPal Holdings's stock based compensation for the three months ended in Sep. 2023 was $379 Mil.

8. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).

PayPal Holdings's cash flow from others for the three months ended in Sep. 2023 was $-364 Mil.

PayPal Holdings Cash Flow from Operations Related Terms

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