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.

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PayPal Holdings ROCE % Chart

PayPal Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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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															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.

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

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » PayPal Holdings Inc (BUE:PYPL) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

PYPL:USA PYPL:Peru PYPL:Mexico PYPL_KZ:Kazakhstan 1PYPL:Italy 2PPd:UK 2PP:Germany PYPL:Canada PYPL34:Brazil 2PP:Bulgaria PYPL:Austria

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 426 million active accounts at the end of 2023. The company also owns Venmo, a person-to-person payment platform.