eBay Inc (EBAY)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 2,433,000 1,985,000 2,154,000 1,379,000 1,428,000
Short-term investments US$ in thousands 3,457,000 7,030,000 5,317,000 5,944,000 2,398,000
Total current liabilities US$ in thousands 6,098,000 4,520,000 4,271,000 4,622,000 4,002,000
Cash ratio 0.97 1.99 1.75 1.58 0.96

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,433,000K + $3,457,000K) ÷ $6,098,000K
= 0.97

The cash ratio of eBay Inc has shown fluctuation over the past five years. Starting at 0.96 in December 2020, the ratio increased steadily to 1.58 in December 2021, further improving to 1.75 by December 2022, and reaching its peak at 1.99 by December 2023. However, there was a slight dip to 0.97 by December 2024.

The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations using liquid assets. While eBay Inc experienced a notable increase in its cash ratio over the analyzed period, the slight decline in December 2024 suggests potential fluctuations in the company's liquidity position.

It is essential for investors and stakeholders to monitor the cash ratio alongside other liquidity ratios to gain a comprehensive understanding of eBay Inc's financial health and ability to meet its short-term obligations in the future.


See also:

eBay Inc Cash Ratio