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PayPal Holdings Quick Ratio

: 1.23 (As of Jun. 2022)
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The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. PayPal Holdings's quick ratio for the quarter that ended in Jun. 2022 was 1.23.

PayPal Holdings has a quick ratio of 1.23. It generally indicates good short-term financial strength.

The historical rank and industry rank for PayPal Holdings's Quick Ratio or its related term are showing as below:

PYPL' s Quick Ratio Range Over the Past 10 Years
Min: 1.19   Med: 1.38   Max: 1.57
Current: 1.23

During the past 10 years, PayPal Holdings's highest Quick Ratio was 1.57. The lowest was 1.19. And the median was 1.38.

PYPL's Quick Ratio is ranked worse than
78.12% of 361 companies
in the Credit Services industry
Industry Median: 3.43 vs PYPL: 1.23

PayPal Holdings Quick Ratio Historical Data

The historical data trend for PayPal Holdings's Quick Ratio 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.43 1.27 1.43 1.33 1.22

PayPal Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.29 1.30 1.22 1.19 1.23

Competitive Comparison

For the Credit Services subindustry, PayPal Holdings's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio Distribution

For the Credit Services industry and Financial Services sector, PayPal Holdings's Quick Ratio distribution charts can be found below:

* The bar in red indicates where PayPal Holdings's Quick Ratio falls into.



PayPal Holdings Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

PayPal Holdings's Quick Ratio for the fiscal year that ended in Dec. 2021 is calculated as

Quick Ratio (A: Dec. 2021 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(52574-0)/43029
=1.22

PayPal Holdings's Quick Ratio for the quarter that ended in Jun. 2022 is calculated as

Quick Ratio (Q: Jun. 2022 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(55252-0)/45095
=1.23

* 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.


PayPal Holdings  (NAS:PYPL) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.


PayPal Holdings Quick Ratio Related Terms

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


PayPal Holdings Business Description

PayPal Holdings logo
Address
2211 North First Street, San Jose, CA, USA, 95131
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 426 million active accounts at the end of 2021, including 34 million merchant accounts. The company also owns Xoom, an international money transfer business, and Venmo, a person-to-person payment platform.
Executives
Scheibe Gabrielle officer: SVP, Corp Finance & Investor R 2211 NORTH FIRST STREET SAN JOSE CA 95131
Lores Enrique director 3000 HANOVER STREET PALO ALTO CA 94304
Karbowski Jeffrey William officer: VP, Chief Accounting Officer 2211 N 1ST ST SAN JOSE CA 95131
Alford Peggy officer: EVP, Global Sales 435 TASSO STREET PALO ALTO CA 94301
Rainey John D officer: CFO and EVP, Global Cust Oper C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Johnson Allison officer: EVP, Chief Marketing Officer C/O PAYPAL HOLDINGS INC 2211 NORTH FIRST STREET SAN JOSE CA 95131
Britto Mark officer: EVP, Global Sales and Credit C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Messemer Deborah M. director C/O ALLOGENE THERAPEUTICS, INC. 210 EAST GRAND AVENUE SOUTH SAN FRANCISCO CA 94080
Adkins Rodney C director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Sarnoff Ann director C/O HSN, INC. 1 HSN DRIVE SAINT PETERSBURG FL 33729
Karczmer Aaron officer: SVP, CR & Compliance Officer PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Johnson Belinda J. director 394 PACIFIC AVENUE, FLOOR 2 SAN FRANCISCO CA 94111
Shivananda Sripada officer: SVP, Chief Technology Officer 2211 NORTH FIRST STREET 2211 NORTH FIRST STREET SAN JOSE CA 95131
Casares Wences director C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Morales-jaffe Marcia officer: SVP, Human Resources C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131

PayPal Holdings Headlines

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