eBay Inc (EBAY)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,283,000 | 10,112,000 | 9,795,000 | 10,420,000 | 8,894,000 |
| Total current assets | US$ in thousands | 7,567,000 | 11,016,000 | 9,290,000 | 9,111,000 | 7,190,000 |
| Total current liabilities | US$ in thousands | 6,098,000 | 4,520,000 | 4,271,000 | 4,622,000 | 4,002,000 |
| Working capital turnover | 7.00 | 1.56 | 1.95 | 2.32 | 2.79 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,283,000K ÷ ($7,567,000K – $6,098,000K)
= 7.00
Based on the data provided, the working capital turnover for eBay Inc has shown a fluctuating trend over the years. In 2020, the working capital turnover was 2.79, indicating that eBay was able to generate $2.79 in revenue for every dollar of working capital invested during that period.
However, this ratio decreased to 2.32 in 2021, and further declined to 1.95 in 2022, suggesting that eBay's efficiency in utilizing its working capital to generate revenue decreased during these years.
In 2023, the working capital turnover dropped to 1.56, indicating a further decline in efficiency in utilizing working capital to generate revenue. This may point towards potential inefficiencies in managing and utilizing the company's working capital resources.
Interestingly, in 2024, there was a sudden spike in the working capital turnover to 7.00, suggesting a significant improvement in efficiency in utilizing working capital to generate revenue. This could be attributed to improved working capital management practices or a change in business operations for eBay during that period.
Overall, the trend in eBay Inc's working capital turnover indicates fluctuations in efficiency in utilizing working capital resources to generate revenue over the years, with 2024 showing a notable improvement. It would be important for eBay to closely monitor and manage its working capital efficiently to sustain and improve its operational performance in the future.
Peer comparison
Dec 31, 2024