eBay Inc (EBAY)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,941,000 | 2,350,000 | 2,923,000 | 2,636,000 | 1,770,000 |
| Revenue | US$ in thousands | 10,112,000 | 9,795,000 | 10,420,000 | 8,894,000 | 7,429,000 |
| Operating profit margin | 19.20% | 23.99% | 28.05% | 29.64% | 23.83% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,941,000K ÷ $10,112,000K
= 19.20%
EBay Inc.'s operating profit margin has displayed fluctuations over the past five years. In 2023, the operating profit margin improved significantly to 19.20%, indicating that the company generated more operating profit relative to its revenue. This is a positive sign of effective cost management and operational efficiency.
However, in 2022, the operating profit margin was negative at -14.66%, suggesting that the company's operating expenses exceeded its gross profit during that period. This could be a concerning financial performance indicator as it indicates a loss at the operating level.
In 2021, the operating profit margin was 5.36%, which was lower compared to the figures in 2020 and 2019. This might indicate a decrease in profitability, but the company still managed to generate a positive margin.
The highest operating profit margin was recorded in 2020 at 26.39%, showing strong profitability relative to revenue. Similarly, in 2019, the operating profit margin was 21.49%, indicating a healthy level of profitability.
Overall, EBay Inc.'s operating profit margin has shown variability, with both positive and negative trends in recent years. Investors and stakeholders should closely monitor these fluctuations to assess the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023