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Posted on Jun 22, 2024

I need assistance calculating the Return on Equity (ROE) and the Return on Assets (ROA). I understand the calculations are: ROE = Net income/ Book

I need assistance calculating the Return on Equity (ROE) and the Return on Assets (ROA).

I understand the calculations are: ROE = Net income/ Book Value of Equity and ROA = (Net Income + Interest Expense) / Book value of Assets; however, I don't know which data points to utilize. Here's the data provided:

PYPL_balance-sheet_Annual_As_Originally_Reported 2013 2014 2015 Total Assets 19,160,000,000 21,917,000,000 28,881,000,000 Total Current Assets 14,620,000,000 17,565,000,000 20,648,000,000 Cash, Cash Equivalents and Short Term Investments 1,925,000,000 2,230,000,000 3,411,000,000 Cash and Cash Equivalents 1,604,000,000 2,201,000,000 1,393,000,000 Short Term Investments 321,000,000 00,000 2,018,000,000 Trade and Other Receivables, Current 12,428,000,000 14,957,000,000 16,582,000,000 TraderAccounts Receivable, Current 9,329,000,000 10,677,000,000 12,398,000,000 Loans Receivable, Current 2,789,000,000 3,586,000,000 4,184,000,000 Notes Receivable, Current 310,000,000 694,000,000 Prepayments and Deposits, Current 655,000,000 Other Current Assets 267,000,000 378,000,000 Total Non-Current Assets 4,540,000,000 4,352,000,000 8,233,000,000 Net Property, Plant and Equipment 858,000,000 922,000,000 1,344,000,000 Gross Property, Plant and Equipment 2,403,000,000 2,862,000,000 3,849,000,000 Properties 328,000,000 000,000 $49,000,000 Land and Improvements 162,000,000 162,000,000 352,000,000 Leasehold and Improvements 166,000,000 86,000,000 Buildings and Improvements 297,000,000 Machinery, Furniture and Equipment 1,983,000,000 2,350,000,000 3,067,000,000 Furniture, Fixtures and Office Equipment 1,983,000,000 2,350,000,000 3,067,000,000 Construction in Progress and Advance Payments 92,000,000 164,000,000 133,000,000 Accumulated Depreciation and Impairment 1,545,000,000 -1,940,000,000 2,505,000,000 Accumulated Depreciation -1,545,000,000 -1,940,000,000 2,505,000,000 Net Intangible Assets 3,445,000,000 3,345,000,000 4,427,000,000 Gross Goodwill and Other Intangible Assets 4,185,000,000 4,162,000,000 5,359,000,000 Goodwill 3,187,000,000 3,189,000,000 4,069,000,000 Intangibles other than Goodwill 898,000,000 73,000,000 ,290,000,000 Software and Technology 169,000,000 167,000,000 245,000,00 Other Intangible Assets 829,000,000 806,000,000 1,045,000,000 Accumulated Amortization and Impairment 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 196,000,000 31,000,000 2,348,000,000 Other Non-Current Assets 41,000,000 114,000,000 Total Liabilities 11,770,000,000 13,669,000,000 15,122,000,000 Total Current Liabilities 11,261,000,000 13,283,000,000 13,617,000,000 Payables and Accrued Expenses, Current 10,158,000,000 12,190,000,000 13,617,000,000 Trade and Other Payables, Current 9,387,000,000 10,756,000,000 12,438,000,000 TraderAccounts Payable, Current 9,350,000,000 ,000,000 12,406,000,000 Taxes Payable, Current 37,000,000 100,000 32,000,000 Accrued Expenses, Current 771,000,000 1,434,000,000 1,179,000,000 Financial Liabilities, Current 1,103,000,000 1,093,000,000 Current Debt and Capital Lease Obligation ,103,000,000 1,093,000,000 Current Debt 103,000,000 1,093,000,000 Notes Payable, Current Debt ,103,000,000 1,093,000,000 Total Non-Current Liabilities 509,000,000 386,000,000 1,505,000,000 Financial Liabilities, Non-Current 509,000,000 386,000,000 Long Term Debt and Capital Lease Obligation 509,000,000 386,000,000 Long Term Debt 509,000,000 386,000,000 Tax Liabilities, Non-Current 1,505,000,000 Deferred Tax Liabilities, Non-Current 1,505,000,000 Total Equity 100,000 8,248,000,000 13,759,000,000 Equity Attributable to Parent Stockholders 7,390,000,000 8,248,000,000 13,759,000,000 Paid in Capital 13,100,000,000 Capital Stock 13,100,000,000 Common Stock Preferred Stock Additional Paid in Capital/Share Premium 13,100,000,000 Treasury Stock Retained Earnings/Accumulated Deficit 668,000,000 Reserves Accumulated Comprehensive Income Losses -61,000,000 110,000,000 -3,000,000 Other Equity Interest 7,451,000,000 8,138,000,000 Non-Controlling/Minority InterestsPYPL_cash-flow_Annual_As_Originally_Reported 2013 2014 2015 Cash Flow from Operating Activities, Indirect 1,993,000,000 2,220,000,000 2,546,000,000 Net Cash Flow from Continuing Operating Activities, Indirect 1,993,000,000 2,220,000,000 2,546,000,000 Cash Generated from Operating Activities 1993,000,000 2,220,000,000 2,546,000,000 IncomerLoss before Non-Cash Adjustment 955,000,000 419,000,000 1,228,000,000 otal Adjustments for Non-Cash Items 184,000,000 2,100,000,0 1,824,000,000 Depreciation, Amortization and Depletion, Non-Cash Adjustment 453,000,000 516,000,000 608,000,000 Depreciation and Amortization, Non-Cash Adjustment $53,000,000 516,000,000 608,000,000 Stock-Based Compensation, Non-Cash Adjustment 253,000,000 8,000,000 346.000.00 Taxes, Non-Cash Adjustment 52,000,000 680,000,000 127,000,000 Other Provisions, Non-Cash Adjustment 502,000,000 646,000,000 809,000,000 Net Investment Income/Loss, Non-Cash Adjustment Gain/Loss on Financial Instruments, Non-Cash Adjustment Unrealized Gain/Loss on Financial Instruments, Non-Cash Adjustment Other Non-Cash Items Excess Tax Benefit from Stock-Based Compensation, Non-Cash Adjustment -76,000,000 -41,000,000 -26,000,000 rregular Income/Loss, Non-Cash Adjustment 40,000,000 Gain/Loss on Disposals, Non-Cash Adjustment 40,000,000 Gain Loss on Disposal/Sale of Other Assets, Non-Cash Adjustment -40,000,000 Changes in Operating Capital -146,000,000 -299,000,000 -506,000,000 Change in Trade and Other Receivables 80,000,000 37,000,000 113,000,000 Change in TraderAccounts Receivable ,000,000 -13,000,000 -22,000,000 Change in Loans Receivable 14,000,000 Change in Other Receivables 79,000,000 121,000,000 Change in Notes Receivable -24,000,000 Change in Other Current Assets -62,000,000 384,000,000 Change in Payables and Accrued Expenses 71,000,000 -223,000,001 -165,000,000 Change in Trade and Other Payables 71,000,000 77,000,000 165,000,000 Change in TraderAccounts Payable 13,000,000 42,000,000 2,000,000 Change in Takes Payable 41,000,000 37,000,000 40,000,000 Change in Other Payables 43,000,000 217,000,000 Change in Trade Notes Payable 2,000,00 Change in Accrued Expenses -300,000,000 Change in Other Current Liabilities 69,000,000 423,000,000 Change in Other Operating Capital 304,000,000 -39,000,000 -493,000,000 Cash Flow from Investing Activities -1,721,000,000 -1,546,000,000 -6,389,000,000 Cash Flow from Continuing Investing Activities -1,721,000,000 1,546,000,000 6,389,000,000 Payment for Loan Granted and Repayments Received, Net 793,000,000 1,023,000,000 819,000,000 PurchaserSale and Disposal of Property, Plant and Equipment, Net 391,000,000 492,000,000 -696,000,000 Purchase of Property, Plant and Equipment 391,000,000 -492,000,000 722,000,000 Sale and Disposal of Property, Plant and Equipment 26,000,000 PurchaserSale of Business, Net 731,000,000 2,000,000 -1,225,000,000 PurchaserAcquisition of Business 731,000,000 2,000,000 1,225,000,000 Purchase/Sale of Investments, Net 290,000,000 333,000,000 -4,224,000,000 Purchase of Investments 610,000,000 -76,000,000 -7,542,000,000 Bale of Investments 320,000,000 409,000,000 3,318,000,000 PurchaserSale of Other Non-Current Assets, Net Other Investing Cash Flow 484,000,000 362,000,000 575,000,000 Cash Flow from Financing Activities 85,000,000 51,000,000 3,079,000,000 Cash Flow from Continuing Financing Activities 85,000,000 -51,000,000 3,079,000,000 Issuance offPayments for Common Stock, Net 0 75,000,000 Proceeds from Issuance of Common Stock 75,000,000 Payments for Common Stock Issuance offRepayments for Debt, Net -133,000,000 21,000,000 -862,000,000 Issuance offRepayments for Long Term Debt, Net -21,000,000 Proceeds from Issuance of Long Term Debt Repayments for Long Term Debt ssuance of/Repayments for Short Term Debt, Net -133,000,000 -862,000,000 Repayments for Short Term Debt 133,000,000 862,000,000 Other Financing Cash Flow 0 18,000,000 Excess Tax Benefit from Share-Based Compensation, Financing Activities 76,000,000 41,000,000 26,000,000 Net Movement in Non-Controlling Minority Interest 28,000,000 -71,000,000 3,858,000,000 Cash and Cash Equivalents, End of Period ,604,000,000 2,201,000,000 1,393,000,000 Change in Cash 87,000,000 623,000,000 764,000,000 Effect of Exchange Rate Changes 3,000,000 -26,000,000 -44,000,000 Cash and Cash Equivalents, Beginning of Period 1,414,000,000 1,604,000,000 2,201,000,000 Change in Cash as Reported, Supplemental 190,000,000 597,000,00 808,000,000 Income Tax Paid, Supplemental 28,000,000 47,000,000 -216,000,000 Interest Paid, Supplemental -14,000,000 -19,000,000 -16,000,000PYPL_income-statement_Annual_As_Originally_Reported 2013 2014 2015 Gross Profit 4,390,000,000 5,209,000,000 5,829,000,000 Total Revenue 6,727,000,000 8.025,000,000 9.248,000,000 Business Revenue 6,727,000,000 8,025,000,000 9,248,000,000 Cost of Revenue 2,337,000,000 2,816,000,000 -3,419,000,000 Cost of Goods and Services -2,337,000,000 -2,816,000,000 -3,419,000,000 Other Cost of Revenue Operating Income/Expenses -3,299,000,000 -3,941,000,000 -4,320,000,000 Selling, General and Administrative Expenses -2,119,000,000 -2,535,000,000 -2,765,000,000 General and Administrative Expenses -1,328,000,000 -1,537,000,000 1,780,000,000 Selling and Marketing Expenses -791,000,000 998,000,000 -985,000,000 Research and Development Expenses -727,000,000 -890,000,000 947,000,000 Depreciation, Amortization and Depletion -453,000,000 -516,000,000 -608,000,000 Depreciation and Amortization -453,000,000 -516,000,000 -608,000,000 Total Operating Profit/Loss 1,091,000,000 1,268,000,000 1,509,000,000 Non-Operating Income/Expenses, Total -7,000,000 -7,000,000 -21,000,000 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 0 -48,000,000 Restructuring and Reorganization Income/Expense 48,000,000 Other Income/Expense, Non-Operating -7,000,000 -7,000,000 27,000,000 Pretax Income 1,084,000,000 1,261,000,000 1,488,000,000 Provision for Income Tax -129,000,000 842,000,000 -260,000,000 Net Income from Continuing Operations 955,000,000 419,000,000 1,228,000,000 Net Income after Extraordinary Items and Discontinued Operations 955,000,000 419,000,000 1,228,000,000 Net Income after Non-Controlling/Minority Interests 955,000,000 419,000,000 1,228,000,000 Net Income Available to Common Stockholders 955,000,000 419,000,000 1,228,000,000 Diluted Net Income Available to Common Stockholders 955,000,000 419,000,000 1,228,000,000 Total Revenue as Reported, Supplemental 6,727,000,000 8,025,000,000 9,248,000,000 Operating Expense as Reported, Supplemental -5,636,000,000 6,757,000,000 -7,787,000,000 Total Operating Profit/Loss as Reported, Supplemental 1,091,000,000 1,268,000,000 1,461,000,000 Reported Effective Tax Rate 0.119 0.67 0.175 Reported Normalized Income 1,186,000,000 1,343,000,000 1,588,000,000 Reported Normalized Operating Profit 1,411,000,000 1,648,000,000 1,975,000,000 Basic EPS 0.31 1.00 Basic EPS from Continuing Operations 0.31 1.00 Diluted EPS 0.31 1.00 Diluted EPS from Continuing Operations 0.31 1.00 Basic Weighted Average Shares Outstanding 1,251,000,000 1,222,000,000 Diluted Weighted Average Shares Outstanding 1,262,000,000 1,229,000,000 Reported Normalized Diluted EPS 1.10 1.29 Basic EPS 0.31 1.00 Diluted EPS 0.31 1.00 Basic WASO 1,251,000,000 1,222,000,000 Diluted WASO ,262,000,000 1,229,000,000 Fiscal year ends in Dec 31 | USD