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.
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PayPal Holdings Annual Data
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Trend |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
| Beneish M-Score |
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|
|
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-2.79 |
-2.45 |
-2.42 |
-2.40 |
-2.58 |
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PayPal Holdings Quarterly Data
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Dec18 |
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
| Beneish M-Score |
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|
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-2.52 |
-2.58 |
-2.60 |
-2.50 |
-2.45 |
Competitive Comparison
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 Beneish M-Score Distribution
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.
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:
| M | = | -4.84 | + | 0.92 * DSRI | + | 0.528 * GMI | + | 0.404 * AQI | + | 0.892 * SGI | + | 0.115 * DEPI |
| = | -4.84 | + | 0.92 * 0.9061 | + | 0.528 * 1.0779 | + | 0.404 * 0.9344 | + | 0.892 * 1.0767 | + | 0.115 * 1.0004 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.7929 | + | 4.679 * 0.001256 | - | 0.327 * 1.0114 |
| = | -2.45 |
* 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.
| This Year (Sep23) TTM: | Last Year (Sep22) TTM: |
Total Receivables was $40,695 Mil.
Revenue was 7418 + 7287 + 7040 + 7383 = $29,128 Mil.
Gross Profit was 3369 + 3348 + 3315 + 3671 = $13,703 Mil.
Total Current Assets was $56,635 Mil.
Total Assets was $76,440 Mil.
Property, Plant and Equipment(Net PPE) was $1,529 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,135 Mil.
Selling, General, & Admin. Expense(SGA) was $3,887 Mil.
Total Current Liabilities was $43,442 Mil.
Long-Term Debt & Capital Lease Obligation was $10,640 Mil.
Net Income was 1020 + 1029 + 795 + 921 = $3,765 Mil.
Non Operating Income was -4 + 117 + -110 + -154 = $-151 Mil.
Cash Flow from Operations was 1259 + -200 + 1170 + 1591 = $3,820 Mil.
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Total Receivables was $41,715 Mil.
Revenue was 6846 + 6806 + 6483 + 6918 = $27,053 Mil.
Gross Profit was 3491 + 3314 + 3297 + 3616 = $13,718 Mil.
Total Current Assets was $55,105 Mil.
Total Assets was $76,435 Mil.
Property, Plant and Equipment(Net PPE) was $1,773 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,317 Mil.
Selling, General, & Admin. Expense(SGA) was $4,553 Mil.
Total Current Liabilities was $43,228 Mil.
Long-Term Debt & Capital Lease Obligation was $10,241 Mil.
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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) |
| = | (40695 / 29128) | / | (41715 / 27053) |
| = | 1.397109 | / | 1.541973 |
| | = | 0.9061 |
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) |
| = | (13718 / 27053) | / | (13703 / 29128) |
| = | 0.507079 | / | 0.470441 |
| | = | 1.0779 |
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 - (56635 + 1529) / 76440) | / | (1 - (55105 + 1773) / 76435) |
| = | 0.239089 | / | 0.255864 |
| | = | 0.9344 |
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 |
| = | 29128 | / | 27053 |
| | = | 1.0767 |
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)) |
| = | (1317 / (1317 + 1773)) | / | (1135 / (1135 + 1529)) |
| = | 0.426214 | / | 0.426051 |
| | = | 1.0004 |
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) |
| = | (3887 / 29128) | / | (4553 / 27053) |
| = | 0.133445 | / | 0.168299 |
| | = | 0.7929 |
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) |
| = | ((10640 + 43442) / 76440) | / | ((10241 + 43228) / 76435) |
| = | 0.707509 | / | 0.699536 |
| | = | 1.0114 |
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 |
| = | (3765 - -151 | - | 3820) | / | 76440 |
| | = | 0.001256 |
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 -2.45 suggests that the company is unlikely to be a manipulator.
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