PayPal Holdings, Inc. — Earnings Quality Grade C
PYPL · Financial Services
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 430 days, change -14 days YoY
AR growth 1.0% vs revenue growth 4.3%
Revenue 4.3%, CFFO -13.9%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 24.7% is >2x revenue growth 4.3%
SG&A/Gross Profit = 27.6%, excellent (<30%)
Gross margin 46.6%, change +0.5pp. Stable
Cash Flow Quality
CFFO/NI = 1.23. Profits backed by cash
FCF $5.6B, FCF/NI = 1.06
Accruals ratio = -1.5%. Low accruals
Cash $10.4B covers debt $10.0B
Balance Sheet Health
Goodwill+Intangibles $11.1B = 55% of equity. Over 50%
Debt/EBITDA = 1.3x. Healthy
Other assets 1.4% vs revenue 4.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -2.54 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score — Not Applicable
PayPal Holdings, Inc. is a financial company. Z-Score is designed for non-financial companies.
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09