Directions Place your ratio calculations in the PayPal Financial MS Excel on the Ratios sheet for 2013 -2015. Provide the formula used to calculate each ratio in the column to the right of your calculations. For example, for calculating the Gross Margin for a company, you would enter Gross Profit / Sales (gross profit divided by sales). . When calculating values, you should use the SUM function in MS Excel and reference the values directly from the accounting statements provided. You will find an example for the expectations for calculations and the formulas in the attached file with Gross Margin calculated for 2013 - 2015. PROFITABILITY RATIOS PYPL GROSS MARGIN PYPL OPERATION MARGIN PYPL NETPROFIT MARGIN LIQUIDITY RATIO PYPL CURRENT RATIO PYPL CASH RATIO LEVERAGE RATIOS PYPL DEBT TO EQUITY OPERATION RETURNS PYPL ROE PYPL ROA 2013 2014 2015 FORMULA 65.26% 64.91% 63.03% Gross Profit / Sales PYPL_income-statement_Annual_As_Originally_Reported Gross Profit Total Revenue Business Revenue Cost of Revenue Cost of Goods and Services Other Cost of Revenue Operating Income/Expenses Selling, General and Administrative Expenses General and Administrative Expenses Selling and Marketing Expenses Research and Development Expenses Depreciation, Amortization and Depletion Depreciation and Amortization Total Operating Profit/Loss Non-Operating Income/Expenses, Total Total Net Finance Income/Expense Net Interest Income/Expense Interest Expense Net of Capitalized Interest Interest Income Net Investment Income Gain/Loss on Investments and Other Financial Instruments Irregular Income/Expenses 2013 2014 2015 4,390,000,000 5,209,000,000 5,829,000,000 6,727,000,000 8,025,000,000 9,248,000,000 6,727,000,000 8,025,000,000 9,248,000,000 -2,337,000,000 -2,816,000,000 -3,419,000,000 -2,337,000,000 -2,816,000,000 -3,419,000,000 -3,299,000,000 -3,941,000,000 -4,320,000,000 -2,119,000,000 -2,535,000,000 -2,765,000,000 -1,328,000,000 -1,537,000,000 -1,780,000,000 -791,000,000 -998,000,000 -985,000,000 -727,000,000 -890,000,000 -947,000,000 -453,000,000 -516,000,000 -608,000,000 -453,000,000 -516,000,000 -608,000,000 1,091,000,000 -7,000,000 1,268,000,000 1,509,000,000 -7,000,000 -21,000,000 Restructuring and Reorganization Income/Expense Other Income/Expense, Non-Operating Pretax Income Provision for Income Tax Net Income from Continuing Operations 0 0 0 -48,000,000 -48,000,000 -7,000,000 -7,000,000 27,000,000 1,084,000,000 1,261,000,000 1,488,000,000 -129,000,000 -842,000,000 -260,000,000 955,000,000 419,000,000 1,228,000,000 955,000,000 Net Income after Extraordinary Items and Discontinued Operations Net Income after Non-Controlling/Minority Interests Net Income Available to Common Stockholders Diluted Net Income Available to Common Stockholders Total Revenue as Reported, Supplemental Operating Expense as Reported, Supplemental Total Operating Profit/Loss as Reported, Supplemental Reported Effective Tax Rate Reported Normalized Income Reported Normalized Operating Profit Basic EPS Basic EPS from Continuing Operations Diluted EPS Diluted EPS from Continuing Operations Basic Weighted Average Shares Outstanding Diluted Weighted Average Shares Outstanding Reported Normalized Diluted EPS Basic EPS Diluted EPS Basic WASO Diluted WASO Fiscal year ends in Dec 31 | USD 419,000,000 1,228,000,000 955,000,000 419,000,000 1,228,000,000 955,000,000 955,000,000 419,000,000 1,228,000,000 419,000,000 1,228,000,000 6,727,000,000 8,025,000,000 9,248,000,000 -5,636,000,000 -6,757,000,000 -7,787,000,000 1,091,000,000 0.119 1,268,000,000 0.67 1,461,000,000 0.175 1,186,000,000 1,343,000,000 1,588,000,000 1,411,000,000 1,648,000,000 1,975,000,000 0.31 1.00 0.31 1.00 0.31 1.00 0.31 1.00 1,251,000,000 1,222,000,000 1,262,000,000 1,229,000,000 1.10 1.29 0.31 1.00 0.31 1.00 1,251,000,000 1,222,000,000 1,262,000,000 1,229,000,000 Total Assets PYPL_balance-sheet_Annual_As_Originally_Reported Total Current Assets Cash, Cash Equivalents and Short Term Investments Cash and Cash Equivalents Short Term Investments Trade and Other Receivables, Current Trade/Accounts Receivable, Current Loans Receivable, Current Notes Receivable, Current Prepayments and Deposits, Current Other Current Assets Total Non-Current Assets Net Property, Plant and Equipment Gross Property, Plant and Equipment Properties Land and Improvements Leasehold and Improvements Buildings and Improvements Machinery, Furniture and Equipment Furniture, Fixtures and Office Equipment Construction in Progress and Advance Payments Accumulated Depreciation and Impairment Accumulated Depreciation Net Intangible Assets Gross Goodwill and Other Intangible Assets Goodwill Intangibles other than Goodwill Software and Technology 2013 2014 2015 19,160,000,000 21,917,000,000 28,881,000,000 14,620,000,000 17,565,000,000 20,648,000,000 1,925,000,000 2,230,000,000 3,411,000,000 1,604,000,000 2,201,000,000 1,393,000,000 29,000,000 2,018,000,000 321,000,000 12,428,000,000 14,957,000,000 16,582,000,000 9,329,000,000 10,677,000,000 12,398,000,000 2,789,000,000 3,586,000,000 4,184,000,000 310,000,000 267,000,000 694,000,000 0 655,000,000 378,000,000 4,540,000,000 4,352,000,000 8,233,000,000 858,000,000 2,403,000,000 2,862,000,000 3,849,000,000 348,000,000 649,000,000 922,000,000 1,344,000,000 328,000,000 162,000,000 162,000,000 352,000,000 166,000,000 186,000,000 297,000,000 1,983,000,000 2,350,000,000 3,067,000,000 1,983,000,000 2,350,000,000 3,067,000,000 92,000,000 164,000,000 133,000,000 -1,940,000,000 -2,505,000,000 -1,545,000,000 -1,545,000,000 -1,940,000,000 -2,505,000,000 3,445,000,000 3,345,000,000 4,427,000,000 4,185,000,000 4,162,000,000 5,359,000,000 3,187,000,000 998,000,000 3,189,000,000 4,069,000,000 973,000,000 1,290,000,000 169,000,000 167,000,000 245,000,000 Other Intangible Assets Accumulated Amortization and Impairment 829,000,000 806,000,000 1,045,000,000 -740,000,000 -817,000,000 -932,000,000 Accumulated Amortization of Intangible Assets -740,000,000 -817,000,000 -932,000,000 Accumulated Amortization of Intangibles other than Goodwill -740,000,000 -817,000,000 -932,000,000 Accumulated Amortization of Software and Technology -136,000,000 -153,000,000 -176,000,000 Accumulated Amortization of Other Intangible Assets -604,000,000 -664,000,000 -756,000,000 Total Long Term Investments Other Non-Current Assets Total Liabilities Total Current Liabilities Payables and Accrued Expenses, Current Trade and Other Payables, Current Trade/Accounts Payable, Current Taxes Payable, Current Accrued Expenses, Current Financial Liabilities, Current Current Debt and Capital Lease Obligation Current Debt Notes Payable, Current Debt 1,103,000,000 1,093,000,000 1,103,000,000 1,093,000,000 1,103,000,000 196,000,000 31,000,000 2,348,000,000 41,000,000 54,000,000 114,000,000 11,770,000,000 13,669,000,000 15,122,000,000 11,261,000,000 13,283,000,000 13,617,000,000 10,158,000,000 12,190,000,000 13,617,000,000 9,387,000,000 10,756,000,000 12,438,000,000 9,350,000,000 10,727,000,000 12,406,000,000 37,000,000 32,000,000 771,000,000 1,434,000,000 1,179,000,000 29,000,000 1,103,000,000 1,093,000,000 0 Total Non-Current Liabilities Financial Liabilities, Non-Current Long Term Debt and Capital Lease Obligation Long Term Debt 1,093,000,000 509,000,000 386,000,000 1,505,000,000 509,000,000 386,000,000 509,000,000 386,000,000 509,000,000 386,000,000 Long Term Debt Tax Liabilities, Non-Current Deferred Tax Liabilities, Non-Current Total Equity Equity Attributable to Parent Stockholders Paid in Capital Capital Stock Common Stock Preferred Stock Additional Paid in Capital/Share Premium Treasury Stock Retained Earnings/Accumulated Deficit Reserves/Accumulated Comprehensive Income/Losses Other Equity Interest Non-Controlling/Minority Interests Debt Maturity Schedule Total Debt due in Year 1 Debt due in Year 2 Debt due in Year 3 Debt due in Year 4 Debt due in Year 5 Debt due Beyond Debt - Interests Charges and Other Adjustments Operating Lease Obligation Maturity Schedule Total Operating Lease due in Year 1 Operating Lease due in Year 2 Operating Lease due in Year 3 Operating Lease due in Year 4 Operating Lease due in Year 5 Operating Lease due Beyond Operating Lease - Interests Charges and Other Adjustments Other Contractual Obligations Maturity Schedule Total Other Contractual Obligations due in Year 1 Other Contractual Obligations due in Year 2 Other Contractual Obligations due in Year 3 Other Contractual Obligations due in Year 4 Other Contractual Obligations due in Year 5 Other Contractual Obligations due Beyond Total Lease Liability Total Lease Liability C Due in year 1 Total Lease Liability C Due in year 2 Total Lease Liability +C Due in year 3 509,000,000 386,000,000 1,505,000,000 1,505,000,000 7,390,000,000 8,248,000,000 13,759,000,000 7,390,000,000 8,248,000,000 13,759,000,000 -61,000,000 110,000,000 7,451,000,000 8,138,000,000 13,100,000,000 13,100,000,000 0 13,100,000,000 668,000,000 -9,000,000 0 Total Lease Liability C Due in year 4 Total Lease Liability C Due in year 5 Total Lease Liability C Beyond Total Lease Liability C Interest Charges and Other Adjustments Total Contractual Obligations Total Contractual Obligations due in year 1 Total Contractual Obligations due in year 2 Total Contractual Obligations due in year 3 Total Contractual Obligations due in year 4 Total Contractual Obligations due in year 5 Total Contractual Obligations due Beyond Total Contractual Obligations - Interests Charges and Other Adjustments Fiscal year ends in Dec 31 | USD PYPL_cash-flow_Annual_As Originally_Reported Cash Flow from Operating Activities, Indirect Net Cash Flow from Continuing Operating Activities, Indirect Cash Generated from Operating Activities Income/Loss before Non-Cash Adjustment Total Adjustments for Non-Cash Items Depreciation, Amortization and Depletion, Non-Cash Adjustment Depreciation and Amortization, Non-Cash Adjustment Stock-Based Compensation, Non-Cash Adjustment Taxes, Non-Cash Adjustment Other Provisions, Non-Cash Adjustment Net Investment Income/Loss, Non-Cash Adjustment Gain/Loss on Financial Instruments, Non-Cash Adjustment 2013 1,993,000,000 2014 2,220,000,000 2,546,000,000 2015 1,993,000,000 2,220,000,000 2,546,000,000 1,993,000,000 2,220,000,000 2,546,000,000 419,000,000 1,228,000,000 955,000,000 1,184,000,000 2,100,000,000 1,824,000,000 453,000,000 516,000,000 608,000,000 453,000,000 516,000,000 608,000,000 299,000,000 346,000,000 253,000,000 52,000,000 680,000,000 127,000,000 502,000,000 646,000,000 809,000,000 Changes in Operating Capital Change in Trade and Other Receivables Change in Trade/Accounts Receivable Change in Loans Receivable Change in Other Receivables Unrealized Gain/Loss on Financial Instruments, Non-Cash Adjustment Other Non-Cash Items Excess Tax Benefit from Stock-Based Compensation, Non-Cash Adjustment Irregular Income/Loss, Non-Cash Adjustment -78,000,000 -41,000,000 -26,000,000 0 -40,000,000 Gain/Loss on Disposals, Non-Cash Adjustment 0 -40,000,000 Gain/Loss on Disposal/Sale of Other Assets, Non-Cash Adjustment 0 -40,000,000 -148,000,000 -299,000,000 -506,000,000 80,000,000 -37,000,000 113,000,000 1,000,000 -13,000,000 -22,000,000 0 14,000,000 79,000,000 121,000,000 -24,000,000 -82,000,000 -384,000,000 71,000,000 -223,000,000 -165,000,000 71,000,000 77,000,000 -165,000,000 -13,000,000 42,000,000 12,000,000 41,000,000 37,000,000 40,000,000 43,000,000 -217,000,000 -2,000,000 -300,000,000 69,000,000 423,000,000 -304,000,000 -39,000,000 -493,000,000 -8,389,000,000 Change in Notes Receivable Change in Other Current Assets Change in Payables and Accrued Expenses Change in Trade and Other Payables Change in Trade/Accounts Payable Change in Taxes Payable Change in Other Payables Change in Trade Notes Payable Change in Accrued Expenses Change in Other Current Liabilities Change in Other Operating Capital Cash Flow from Investing Activities Cash Flow from Continuing Investing Activities Payment for Loan Granted and Repayments Received, Net Purchase/Sale and Disposal of Property, Plant and Equipment, Net Purchase of Property, Plant and Equipment Sale and Disposal of Property, Plant and Equipment Purchase/Sale of Business, Net Purchase/Acquisition of Business Purchase/Sale of Investments, Net Purchase of Investments Sale of Investments Purchase/Sale of Other Non-Current Assets, Net Other Investing Cash Flow Cash Flow from Financing Activities Cash Flow from Continuing Financing Activities Issuance of/Payments for Common Stock, Net Proceeds from Issuance of Common Stock Payments for Common Stock Issuance of/Repayments for Debt, Net Issuance of Repayments for Long Term Debt, Net -1,721,000,000 -1,548,000,000 -1,721,000,000 -1,546,000,000 -6,389,000,000 -793,000,000 -1,023,000,000 -391,000,000 -492,000,000 -819,000,000 -696,000,000 -391,000,000 -492,000,000 -722,000,000 0 -731,000,000 28,000,000 -2,000,000 -1,225,000,000 -731,000,000 -2,000,000 -1,225,000,000 -290,000,000 333,000,000 -4,224,000,000 -810,000,000 -76,000,000 -7,542,000,000 320,000,000 409,000,000 3,318,000,000 575,000,000 -51,000,000 3,079,000,000 -51,000,000 3,079,000,000 484,000,000 -362,000,000 -85,000,000 -85,000,000 0 75,000,000 0 75,000,000 -133,000,000 -21,000,000 -21,000,000 -882,000,000 Proceeds from Issuance of Long Term Debt Repayments for Long Term Debt Issuance of/Repayments for Short Term Debt, Net Repayments for Short Term Debt Other Financing Cash Flow Excess Tax Benefit from Share-Based Compensation, Financing Activities Net Movement in Non-Controlling/Minority Interest Cash and Cash Equivalents, End of Period Change in Cash Effect of Exchange Rate Changes Cash and Cash Equivalents, Beginning of Period Change in Cash as Reported, Supplemental Income Tax Paid, Supplemental Interest Paid, Supplemental Fiscal year ends in Dec 31 | USD -133,000,000 -133,000,000 -882,000,000 -882,000,000 0 0 -18,000,000 76,000,000 -28,000,000 41,000,000 -71,000,000 26,000,000 3,858,000,000 1,604,000,000 2,201,000,000 1,393,000,000 187,000,000 3,000,000 1,414,000,000 190,000,000 623,000,000 -764,000,000 -26,000,000 -44,000,000 1,604,000,000 597,000,000 2,201,000,000 -808,000,000 -28,000,000 -47,000,000 -216,000,000 -14,000,000 -19,000,000 -16,000,000