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PayPal Holdings, Inc. PYPL Return on invested capital

Return on invested capital at other companies

American Express logo
American ExpressAXP
49.1%-10.0pp
Apple logo
AppleAAPL
89.1%+17.8pp
Mastercard logo
MastercardMA
88.6%+8.5pp
Visa logo
VisaV
51.3%+5.0pp
Block logo
BlockXYZ
6.5%-1.1pp
Alphabet Inc. logo
Alphabet Inc.GOOGL

Other financials

Income statement

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Revenue$8.4B+7.2%
Operating income$1.5B-2.8%
Net income$1.1B-13.5%
EPS (diluted)$1.21-6.2%

Balance sheet

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Cash & equivalents$22.4B+245%
Total debt$10.1B-17.3%
Total equity$20.0B-1.1%
Total assets$80.5B-0.9%

Cash flow

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Operating cash flow$1.1B-2.2%
CapEx$231.0M+17.9%
Free cash flow$903.0M-6.3%

Valuation

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Market cap$37.12B-35.5%
Enterprise value$24.75B-58.3%
P/E7.3×-5.3×
P/S1.1×-0.7×

Profitability

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Operating margin17.9%0.0pp
Net margin15%+0.7pp

Returns & leverage

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Return on equity25.1%+2.9pp
Debt / equity0.5×-0.1×
Current ratio1.3×0.0×

Where this comes from

Calculated from PayPal Holdings, Inc.’s reported figures.

Based on trailing twelve months.

The official record: PayPal Holdings, Inc.’s 10-Q, filed May 5, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is PayPal Holdings, Inc.'s return on invested capital?
PayPal Holdings, Inc. (PYPL) reported return on invested capital of 35.9% in Q1 2026.
How has PayPal Holdings, Inc.'s return on invested capital changed year-over-year?
PayPal Holdings, Inc.'s return on invested capital increased by 53.9% year-over-year, from 23.3% to 35.9%.
What is the long-term trend for PayPal Holdings, Inc.'s return on invested capital?
Over 4 years (2021 to 2025), PayPal Holdings, Inc.'s return on invested capital has grown at a 18.7% compound annual growth rate (CAGR), from 66% to 131%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.