What is PayPal Working Capital

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One of the top companies operating worldwide online payments system is known as PayPal. It enables its users to transfer money and serves millions of people daily to electronically send and receive money. It also provides its users a more reliable and efficient way for transactions as opposed to traditional methods like money orders and checks (cheques). It supports almost all countries except some countries which are not yet included in the PayPal’s network. Many of its users wants to know what is PayPal working capital. First it must be clear in mind that what is working capital? Working capital is the amount of resources available to a company to run its day-to-day operations. Working capital can be calculated using the following working capital formula

Working Capital = Current Assets — Current Liabilities

Working capital is also known as net working capital. An other term used, Gross working capital is simply the sum total of all current asset available to a company. Current assets include Cash, Cash equivalents, Short-term investments, Accounts receivable and Stock inventory. And working capital is the difference between current assets and current liabilities.

Now that the basic concept of working capital is clear, in order to know PayPal working capital we need PayPal balance sheet extract, which is given below.

PayPal working capitalFrom the above PayPal balance sheet extract, we need total current assets and current liabilities figures for working capital calculations. Here PayPal has total current asset $20,648,000 as of December 31, 2015 and total current liabilities $13,617,000 as of the same date. Now when we subtract current liabilities from current assets amount we get PayPal working capital of $7,031,000. Therefore, PayPal working capital is $7.031 Billion.

Now that you understand the concept and real value of PayPal working capital, if you want to apply for PayPal working capital follow this link.

PayPal Working Capital

 

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