eBay Inc (EBAY)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,098,000 | 4,520,000 | 4,271,000 | 4,622,000 | 4,002,000 |
| Quick ratio | 0.97 | 1.99 | 1.75 | 1.58 | 0.96 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,433,000K
+ $3,457,000K
+ $—K)
÷ $6,098,000K
= 0.97
The quick ratio for eBay Inc has shown a fluctuating trend over the past five years. As of December 31, 2020, the quick ratio was 0.96, indicating that the company may have had difficulties meeting its short-term obligations with its most liquid assets. However, there was a significant improvement in the quick ratio to 1.58 by December 31, 2021, suggesting a better ability to cover current liabilities with quick assets.
The quick ratio continued to strengthen in the following years, reaching 1.75 by December 31, 2022, and further increasing to 1.99 by December 31, 2023. These values indicate an improving liquidity position for eBay Inc, reflecting a more robust ability to meet short-term obligations using quick assets.
However, there was a slight decline in the quick ratio to 0.97 by December 31, 2024, which may raise some concerns about the company's liquidity position at the end of the period.
Overall, the improving trend in eBay Inc's quick ratio from 2020 to 2023 demonstrates a positive development in the company's liquidity management. Investors and stakeholders may want to monitor the quick ratio in future periods to ensure the company maintains a healthy liquidity position.
Peer comparison
Dec 31, 2024