eBay Inc (EBAY)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.44 | 2.18 | 1.97 | 1.80 | 1.16 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $11,016,000K ÷ $4,520,000K
= 2.44
The current ratio of EBay Inc. has been showing a consistent improving trend over the past five years, indicating the company's ability to cover its short-term obligations with its current assets. The current ratio has increased from 1.16 in 2019 to 2.44 in 2023, reflecting a strong liquidity position.
A current ratio above 2 suggests that EBay Inc. has more than enough current assets to cover its current liabilities, providing a buffer for unexpected expenses or economic downturns. This shows a positive sign of financial health and ability to meet short-term obligations without relying heavily on external sources of funding.
The improving current ratio trend of EBay Inc. over the years indicates efficient management of working capital and a strong balance sheet position, which can be attractive to investors and creditors. Overall, the company's current ratio highlights a solid liquidity position and financial stability.
Peer comparison
Dec 31, 2023