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.
Peer comparison
Dec 31, 2023