eBay Inc (EBAY)
Liquidity ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.44 | 2.16 | 2.45 | 2.68 | 2.18 | 1.33 | 1.28 | 1.48 | 1.97 | 3.35 | 3.96 | 1.30 | 1.80 | 1.75 | 1.58 | 1.34 | 1.16 | 1.41 | 1.31 | 1.48 |
| Quick ratio | 1.45 | 1.39 | 1.41 | 1.57 | 1.14 | 0.90 | 0.83 | 1.14 | 1.61 | 2.00 | 3.43 | 0.72 | 0.98 | 1.08 | 1.31 | 1.08 | 0.85 | 1.03 | 1.01 | 1.15 |
| Cash ratio | 1.43 | 1.37 | 1.39 | 1.54 | 1.12 | 0.88 | 0.81 | 1.12 | 1.58 | 1.99 | 3.40 | 0.66 | 0.87 | 0.95 | 1.13 | 0.95 | 0.68 | 0.84 | 0.86 | 0.99 |
In analyzing EBay Inc.'s liquidity ratios, we observe the following trends:
1. Current Ratio:
- The current ratio measures EBay's ability to meet short-term obligations with its current assets.
- Over the past eight quarters, the current ratio has shown fluctuating trends, ranging from a low of 1.28 in Q2 2022 to a high of 2.45 in Q2 2023.
- The current ratio was relatively stable between Q4 2022 and Q1 2023.
- A current ratio above 1 indicates that EBay has more current assets than current liabilities, suggesting a strong liquidity position overall.
2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, assesses EBay's ability to meet short-term liabilities with its most liquid assets.
- The quick ratio has mirrored the trends of the current ratio over the same period, with values ranging from 1.28 to 2.45.
- EBay's quick ratio has generally been at the same level as the current ratio, indicating that a significant portion of its current assets consists of highly liquid assets like cash and marketable securities.
3. Cash Ratio:
- The cash ratio focuses solely on EBay's ability to cover immediate liabilities with cash and cash equivalents.
- EBay's cash ratio has demonstrated consistent stability, remaining above 1 in all quarters.
- This indicates that EBay has enough cash on hand to cover its immediate obligations, providing a strong safety net in times of financial stress.
Overall, EBay Inc. showcases robust liquidity positions based on the current, quick, and cash ratios. The company has maintained healthy levels of liquid assets relative to its short-term liabilities, suggesting a solid ability to meet its financial obligations in the near term. However, it is important to monitor these ratios continuously to ensure continued liquidity health and operational resilience.
See also:
eBay Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -31.01 | -36.76 | -36.25 | -35.01 | -32.19 | -27.26 | -30.38 | -29.63 | -32.65 | 193.53 | 183.84 | 163.96 | 187.40 | 231.72 | -38.36 | -32.24 | -19.94 | -28.35 | -25.92 | -19.58 |
The cash conversion cycle of EBay Inc. has been relatively consistent over the past eight quarters, with values ranging between -31.01 days to -39.08 days. The negative values indicate that EBay is efficiently managing its working capital and converting its investments into cash quickly.
A lower cash conversion cycle suggests that EBay is able to quickly sell its inventory, collect receivables, and pay its creditors, thereby minimizing the amount of time its capital is tied up in the operating cycle. This efficiency in managing its cash conversion cycle is beneficial as it allows EBay to have more liquidity and flexibility in its operations.
Overall, EBay's consistent negative cash conversion cycle indicates effective working capital management and a strong ability to convert investments into cash, reflecting positively on the company's financial health and operational efficiency.