Paypal Accounting and Financial analysis Capstone Project Example

 PAYPAL 2 Financial Performance for 2012 to 2017 Generally, PayPal has experience growth over the five years from 2012 to 2016. In the year ending 31st December 2012, the net revenue for the company was 5.663 billion dollars ("PayPal Holdings - Annual Report", 2017). In the next four years, the revenue grew to 6.627, 8.025, 9.248 and 10.842 billion dollars respectively from 2013 to 2016 ("PayPal Holdings - Annual Report", 2017). The trend shows a continuous growth over time which is a promising indicator for business. There is also a rising trend in the value of assets owned by the company with the values shifting from 16.183 billion dollars in 2013 to 33.103 million dollars in 2017. This is accompanied by an increase in the value of liabilities which has shifted from 428 million dollars to 1.513 billion dollars. Below is a table that represents the performance of the company over the five years in this period. Source: https://investor.PayPal-corp.com/secfiling.cfm?filingID=1633917-17-27&CIK=1633917 In the period between 2013 and 2016, the company witnessed a reduction in cash worthiness of the company. However, the company rose in value in terms of marketable securities. As a result, there was a significant rise in the receivables for the company. In 2013 through to 2016, the cash value of the company was 1.6, 2.2, 1.39 and 1.59 billion dollars respectively ("PayPal Balance Sheet, Annual, 2016, 2015 - Amigobulls", 2017). The 2014 and 2015 results especially show a capstonewriting.com significant drop of almost a billion dollars ("PayPal Balance Sheet, Annual, 2016, 2015 - PAYPAL 3 Amigobulls", 2017). Below is a table that shows the performance of the company over the four years whose full results will be presented in the appendices of the paper. The fiscal year is Jan - Dec 2013 2014 2015 2016 Cash 1.6B 2.2B 1.39B 1.59B Marketable Securities 321M 29M 2.02B 3.39B Receivables 9.33B 10.68B 12.4B 14.58B Notes Receivable 3.1B 4.28B 4.18B 5.35B Other Current Assets 267M 378M 655M 833M Total Current Assets 14.62B 17.57B 20.65B 25.73B The graphical representation of the financial performance of t PayPal produces the following results(Cardenal, 2016) : capstonewriting.com ’ PAYPAL 4 Source: https://www.fool.com/investing/2016/09/19/PayPal-stock-in-5-charts.aspx Comparison with competitors Although PayPal was the pioneer in an era of digital payments, the field is becoming more attractive and therefore more tech giants are getting into the equation. Among the biggest competitors currently are Alipay, Amazon pay services, and JD finance (Gray, 2017). Payoneer and Skrill are also popular methods of sending and receiving money especially for individuals who work online. One major advantage that these companies have is that most of them affiliated with some form of e-commerce social providers. These companies can therefore easily tap on the capstonewriting.com PAYPAL 5 consumers who purchase from their website. There is an increased need to manage individual passwords and the increase in the possibility of using click-to-pay service the better (Tsukayama, 2013). These companies offer an easier option to pay when one is purchasing from these websites. The need for ease of payments has encouraged the rise of signing in with services such as Facebook and Google logins to access payment methods (Tsukayama, 2013). PayPal itself has been propelled to success through its previous relationship with eBay. It is therefore certain that an association with an e-commerce platform such as Amazon and Aliexpress for Alipay is a great advantage. Although competitors are increasing their muscle, the dominance already created by PayPal will be difficult to change. In 2016, PayPal received an increase of 21 million accounts compared to 12million new accounts for Amazon payments (Gray, 2017). Currently, the company has almost 200 million active accounts and 35million more accounts from merchants. On the other side, Amazon Payment has about 33 million accounts (Gray, 2017). PayPal is, therefore, expanding faster despite its already large consumer base. PayPal universal nature as an independent company from eBay is perhaps a propelling industry. To avoid having multiple accounts which increases the chances of forgetting passwords and suffering from fraud, individuals prefer payment methods that will fit across the board. It is, therefore, discouraging for consumers to choose a payment method such as Alipay which will only serve on a single e-commerce platform unless they shop extensively with the traders on the platform. With increased visibilities of global e-commerce platforms, many consumers are not loyal to a single selling point. The success of PayPal on e-Bay was largely due to the primacy of eBay as an e-commerce platform (Beulah, 2017). When PayPal was being established and its subsequent absorption into e-bay, the industry was still new with the limited online selling of which