eBay Inc (EBAY)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	10,112,000	9,795,000	10,420,000	8,894,000	7,429,000
Total current assets	US$ in thousands	11,016,000	9,290,000	9,111,000	7,190,000	4,706,000
Total current liabilities	US$ in thousands	4,520,000	4,271,000	4,622,000	4,002,000	4,066,000
Working capital turnover		1.56	1.95	2.32	2.79	11.61

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,112,000K ÷ ($11,016,000K – $4,520,000K)
= 1.56

EBay Inc.'s working capital turnover has shown a declining trend over the past five years. The ratio decreased from 16.88 in 2019 to 1.56 in 2023. This indicates that the company is generating less revenue relative to its working capital compared to previous years. A lower working capital turnover may suggest inefficiency in managing working capital to support revenue generation. It could also imply possible challenges in converting working capital into sales and cash flow. Further analysis and comparison with industry benchmarks may provide insights into the reasons behind this declining trend and help in identifying potential areas for improvement in EBay Inc.’s working capital management.