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PayPal Holdings (BUE:PYPL) ROCE % : 17.54% (As of Sep. 2024)


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What is PayPal Holdings ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. PayPal Holdings's annualized ROCE % for the quarter that ended in Sep. 2024 was 17.54%.


PayPal Holdings ROCE % Historical Data

The historical data trend for PayPal Holdings's ROCE % 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 ROCE % Chart

PayPal Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.58 21.15 14.81 13.76 23.35

PayPal Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROCE % Get a 7-Day Free Trial 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 19.12 22.90 21.61 18.41 17.54

PayPal Holdings ROCE % Calculation

PayPal Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=2078638.002/( ( (13181313.235 - 7545590.991) + (29661926.027 - 17496226.016) )/ 2 )
=2078638.002/( (5635722.244+12165700.011)/ 2 )
=2078638.002/8900711.1275
=23.35 %

PayPal Holdings's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Sep. 2024 )  (Q: Jun. 2024 )(Q: Sep. 2024 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Sep. 2024 )  (Q: Jun. 2024 )(Q: Sep. 2024 )
=5387433.764/( ( (75236326.924 - 45413490.851) + (79377202.011 - 47779731.9) )/ 2 )
=5387433.764/( ( 29822836.073 + 31597470.111 )/ 2 )
=5387433.764/30710153.092
=17.54 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

* 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  (BUE:PYPL) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.


PayPal Holdings ROCE % Related Terms

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PayPal Holdings Business Description

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 2023. The company also owns Venmo, a person-to-person payment platform.