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## Growth

1. **Revenue Growth**
- PayPal's revenue grew by 10% on a currency-neutral basis in Q1 2024, with total payment volume surging 14% to $403.9 billion.
- However, the company expects a slower revenue growth rate of 6.5-7% for Q2 2024 on an FX-neutral basis.
- Analysts estimate PayPal's revenue growth for the full year 2024 to be around 7%, a significant slowdown from the 13% annual growth over the past 5 years.
- The consensus among analysts projects PayPal's revenue to grow at a 7.8% rate in 2025 and a median growth rate of 8% over the next 5 years.

2. **Total Payment Volume (TPV) Growth**
- PayPal reported a 13% increase in TPV in 2023, exceeding $1.5 trillion, indicating an expanding transaction volume and deeper user engagement.

3. **User Growth**
- While PayPal's user base declined in recent years due to increased competition, it still connects 426 million active accounts as of the analysis, benefiting from significant network effects.

## Profitability

1. **Margins**
- PayPal's operating margins improved by 84 basis points to 18.2% in Q1 2024 on an adjusted basis, addressing investor concerns about margin compression.
- However, the company's net profit margin deteriorated from 15.6% in 2020 to 8.8% in 2022, indicating a decline in profitability.
- PayPal's gross profit margin was around 40% on a trailing twelve-month basis as of the latest quarter.

2. **Profitability Ratios**
- Return on Equity (ROE) declined from 19.2% in 2020 to 11.9% in 2022, reflecting lower profitability.
- Return on Assets (ROA) also decreased from 5.9% in 2020 to 3.1% in 2022.
- PayPal's profitability score, which consolidates various profitability metrics, is rated at 60/100 by some analysts.

3. **Earnings Growth**
- Analysts expect PayPal's earnings per share (EPS) to decline by 0.6% in 2024 but rebound with a 10.5% growth rate in 2025.
- The consensus forecasts a 19.8% annual EPS growth rate for PayPal over the next 5 years.

## Solvency

1. **Debt Levels**
- PayPal's debt-to-equity ratio increased from 0.31 in 2020 to 0.53 in 2022, indicating a higher reliance on debt financing.
- The company's debt-to-assets ratio also rose from 0.14 in 2020 to 0.14 in 2022.
- However, PayPal's interest coverage ratio remained strong at 12.07 in 2022, suggesting it can comfortably service its debt obligations.

2. **Liquidity**
- PayPal's current ratio, a measure of liquidity, was around 1.3 as of the latest quarter, indicating a reasonable ability to meet short-term obligations.
- The company's quick ratio, which excludes inventories, was 0.29, suggesting a lower level of liquid assets.

3. **Solvency Score**
- Some analysts rate PayPal's solvency score at 60/100, consolidating various solvency metrics into a single score.

In summary, while PayPal's growth and profitability have slowed in recent years, the company still maintains a strong market position and network effects. However, its increasing debt levels and declining margins are areas of concern. Analysts expect a recovery in growth and profitability over the next few years, but the company's ability to execute its strategic initiatives and navigate the competitive landscape will be crucial for its long-term success.