PayPal Holdings (NAS:PYPL) EBIT

: $5,077 Mil (TTM As of Sep. 2023)

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PayPal Holdings's earnings before interest and taxes (EBIT) for the three months ended in Sep. 2023 was $1,327 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2023 was $5,077 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. PayPal Holdings's annualized ROC % for the quarter that ended in Sep. 2023 was 17.88%. PayPal Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 340.47%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. PayPal Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 8.17%.

PayPal Holdings EBIT Historical Data

The historical data trend for PayPal Holdings's EBIT 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 Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

EBIT

2,453.00

3,113.00

5,274.00

4,331.00

3,670.00

PayPal Holdings Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
EBIT																1,665.00	1,199.00	1,161.00	1,390.00	1,327.00

Competitive Comparison

For the Credit Services subindustry, PayPal Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT Distribution

For the Credit Services industry and Financial Services sector, PayPal Holdings's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where PayPal Holdings's EV-to-EBIT falls into.

PayPal Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $5,077 Mil.

PayPal Holdings (NAS:PYPL) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

PayPal Holdings's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	4828 * ( 1 - 17.81% )	/	( (22934	+	21457)	/ 2 )
=	3968.1332	/	22195.5
=	17.88 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	74579	-	41754	-	( 9891	-	max(0, 41754	-	54125	+	9891	))
=	22934

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	76440	-	43442	-	( 11541	-	max(0, 43442	-	56635	+	11541	))
=	21457

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

PayPal Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	5308	/	( ( (1589 + max(-4970, 0))	+	(1529 + max(-3414, 0)) )	/	2 )
=	5308	/	( ( 1589	+	1529 )	/	2 )
=	5308	/	1559
=	340.47 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(34571	+	0	+	2213)	-	(41754	+	0	+	0)
=	-4970

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(35629	+	0	+	4399)	-	(43442	+	0	+	0)
=	-3414

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

PayPal Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Sep. 2023 )
	=	5077	/	62137.859
	=	8.17 %

PayPal Holdings EBIT Related Terms

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PayPal Holdings (NAS:PYPL) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

PYPL:Peru PYPL:Mexico PYPL_KZ:Kazakhstan 2PPd:UK 0R9U:UK 2PP:Germany PYPL:Canada PYPL34:Brazil PYPL:Austria PYPL:Argentina

Address

2211 North First Street, San Jose, CA, USA, 95131

Website

https://www.paypal.com

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

James Alexander Chriss	director, officer: President and CEO	C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
John C. Kim	officer: EVP, Chief Product Officer	C/O OWLET, INC., 2500 EXECUTIVE PARKWAY, SUITE 500, LEHI UT 84043
Gabrielle Scheibe	officer: See Remarks	2211 NORTH FIRST STREET, SAN JOSE CA 95131
Blake J Jorgensen	officer: EVP, Chief Financial Officer	209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Enrique Lores	director	3000 HANOVER STREET, PALO ALTO CA 94304
Jeffrey William Karbowski	officer: VP, Chief Accounting Officer	121 ALBRIGHT WAY, LOS GATOS CA 95032
Peggy Alford	officer: EVP, Global Sales	435 TASSO STREET, PALO ALTO CA 94301
John D Rainey	officer: CFO and EVP, Global Cust Oper	C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Allison Johnson	officer: EVP, Chief Marketing Officer	C/O PAYPAL HOLDINGS INC, 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Mark Britto	officer: EVP, Global Sales and Credit	C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Deborah M. Messemer	director	C/O ALLOGENE THERAPEUTICS, INC., 210 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Rodney C Adkins	director	55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Ann Sarnoff	director	C/O HSN, INC., 1 HSN DRIVE, SAINT PETERSBURG FL 33729
Aaron Karczmer	officer: SVP, CR & Compliance Officer	PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Belinda J. Johnson	director	394 PACIFIC AVENUE, FLOOR 2, SAN FRANCISCO CA 94111