PayPal Holdings (MIL:1PYPL) Beneish M-Score : -2.61 (As of Mar. 29, 2025)

View and export this data going back to 2023. Start your Free Trial

What is PayPal Holdings Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for PayPal Holdings's Beneish M-Score or its related term are showing as below:

MIL:1PYPL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.79 Med: -2.46 Max: -2.26
Current: -2.61

During the past 13 years, the highest Beneish M-Score of PayPal Holdings was -2.26. The lowest was -2.79. And the median was -2.46.

PayPal Holdings Beneish M-Score Historical Data

The historical data trend for PayPal Holdings's Beneish M-Score 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 Beneish M-Score Chart

PayPal Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

Get a 7-Day Free Trial

-2.42

-2.40

-2.59

-2.47

-2.61

PayPal Holdings Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.47	-2.51	-2.55	-2.51	-2.61

Competitive Comparison of PayPal Holdings's Beneish M-Score

For the Credit Services subindustry, PayPal Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, PayPal Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PayPal Holdings's Beneish M-Score falls into.

Save Embed

;

Save Embed

;

PayPal Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of PayPal Holdings for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9677

0.528 * 0.9984

0.404 * 1.057

0.892 * 1.0672

0.115 * 1.0569

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0051

4.679 * -0.031013

0.327 * 1.0088

-2.57

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was €43,565 Mil.
Revenue was 7989.53 + 7070.147 + 7325.165 + 7083.08 = €29,468 Mil.
Gross Profit was 3757.925 + 3292.254 + 3351.832 + 3184.12 = €13,586 Mil.
Total Current Assets was €58,343 Mil.
Total Assets was €77,939 Mil.
Property, Plant and Equipment(Net PPE) was €1,440 Mil.
Depreciation, Depletion and Amortization(DDA) was €956 Mil.
Selling, General, & Admin. Expense(SGA) was €3,848 Mil.
Total Current Liabilities was €46,199 Mil.
Long-Term Debt & Capital Lease Obligation was €9,434 Mil.
Net Income was 1070.555 + 910.01 + 1047.912 + 816.96 = €3,845 Mil.
Non Operating Income was -126.06 + -198.22 + -103.119 + -230.92 = €-658 Mil.
Cash Flow from Operations was 2286.27 + 1454.214 + 1416.725 + 1763.64 = €6,921 Mil.

Total Receivables was €42,182 Mil.
Revenue was 7359.842 + 6950.666 + 6725.901 + 6575.36 = €27,612 Mil.
Gross Profit was 3367.224 + 3156.753 + 3090.204 + 3096.21 = €12,710 Mil.
Total Current Assets was €57,376 Mil.
Total Assets was €75,346 Mil.
Property, Plant and Equipment(Net PPE) was €1,364 Mil.
Depreciation, Depletion and Amortization(DDA) was €995 Mil.
Selling, General, & Admin. Expense(SGA) was €3,588 Mil.
Total Current Liabilities was €44,443 Mil.
Long-Term Debt & Capital Lease Obligation was €8,873 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(43565.19 / 29467.922)	/	(42182 / 27611.769)
	=	1.478394	/	1.527682
	=	0.9677

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(12710.391 / 27611.769)	/	(13586.131 / 29467.922)
	=	0.460325	/	0.461048
	=	0.9984

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (58342.86 + 1440.14) / 77938.505)	/	(1 - (57375.773 + 1364.496) / 75346.222)
	=	0.232947	/	0.220395
	=	1.057

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	29467.922	/	27611.769
	=	1.0672

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(994.628 / (994.628 + 1364.496))	/	(955.677 / (955.677 + 1440.14))
	=	0.421609	/	0.398894
	=	1.0569

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(3848.491 / 29467.922)	/	(3587.703 / 27611.769)
	=	0.130599	/	0.129934
	=	1.0051

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((9434.445 + 46199.08) / 77938.505)	/	((8872.892 + 44443.322) / 75346.222)
	=	0.713813	/	0.707616
	=	1.0088

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(3845.437 - -658.319	-	6920.849)	/	77938.505
	=	-0.031013

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

PayPal Holdings has a M-score of -2.57 suggests that the company is unlikely to be a manipulator.

PayPal Holdings Beneish M-Score Related Terms

Thank you for viewing the detailed overview of PayPal Holdings's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

PayPal Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » PayPal Holdings Inc (MIL:1PYPL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

PYPL:USA PYPL:Peru PYPL:Mexico PYPL_KZ:Kazakhstan 2PPd:UK 0R9U:UK 2PP:Germany PYPL:Canada PYPL34:Brazil 2PP:Bulgaria 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 434 million active accounts at the end of 2024. The company also owns Venmo, a person-to-person payment platform.

PayPal Holdings Headlines

No Headlines