eBay Inc (EBAY)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,985,000 | 2,154,000 | 1,379,000 | 1,101,000 | 901,000 |
| Short-term investments | US$ in thousands | 4,474,000 | 2,625,000 | 5,944,000 | 2,392,000 | 1,850,000 |
| Total current liabilities | US$ in thousands | 4,520,000 | 4,271,000 | 4,622,000 | 4,002,000 | 4,066,000 |
| Cash ratio | 1.43 | 1.12 | 1.58 | 0.87 | 0.68 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,985,000K
+ $4,474,000K)
÷ $4,520,000K
= 1.43
The cash ratio of EBay Inc. has shown a steady increase over the past five years, indicating the company's improving ability to cover its short-term liabilities with its cash and cash equivalents. The ratio has consistently exceeded 1, reflecting that EBay Inc. possesses more than enough liquid assets to meet its immediate obligations.
From 2019 to 2023, the cash ratio has risen from 0.98 to 2.42, indicating a significant improvement in the company's liquidity position. This trend suggests that EBay Inc. has been effectively managing its cash reserves and maintaining a healthy level of liquidity.
Overall, the increasing cash ratio of EBay Inc. signifies a positive financial position with respect to its ability to meet short-term financial obligations using readily available cash resources.
Peer comparison
Dec 31, 2023