PayPal Holdings's gross profit for the
three
months ended in Sep. 2023 was $3,369 Mil. PayPal Holdings's gross profit for the trailing twelve months (TTM) ended in Sep. 2023 was $13,703 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. PayPal Holdings's gross profit for the
three
months ended in Sep. 2023 was $3,369 Mil. PayPal Holdings's Revenue for the
three
months ended in Sep. 2023 was $7,418 Mil. Therefore, PayPal Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 45.42%.
PayPal Holdings had a gross margin of 45.42% for the quarter that ended in Sep. 2023 => Durable competitive advantage
During the past 11 years, the highestGross Margin % of PayPal Holdings was 65.26%. The lowest was 47.04%. And the median was 57.08%.
Warning Sign:
PayPal Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -2.2%.
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 Annual Data
Trend
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Gross Profit
8,596.00
9,602.00
11,779.00
13,996.00
13,773.00
PayPal Holdings Quarterly Data
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Gross Profit
3,491.00
3,671.00
3,315.00
3,348.00
3,369.00
Competitive Comparison
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 Gross Profit Distribution
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. 2022 is calculated as
Gross Profit 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 $13,703 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
PayPal Holdings's Gross Margin % for the quarter that ended in Sep. 2023 is calculated as
* 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.
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 45.42% for the quarter that ended in Sep. 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 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.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
0.23(0.39%) Volume: 9,512,850 1:51PM EST
Email Alerts
Stock PDF
RSS
Website
Filings
Download
Manual of Stocks™ Web APP
PYPL has been successfully added to your 