eBay Inc (EBAY)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,962,000 | -1,361,000 | 14,023,000 | 6,829,000 | 2,316,000 |
| Long-term debt | US$ in thousands | 6,973,000 | 7,721,000 | 7,727,000 | 7,740,000 | 6,738,000 |
| Total stockholders’ equity | US$ in thousands | 6,396,000 | 5,153,000 | 9,778,000 | 3,561,000 | 2,870,000 |
| Return on total capital | 29.64% | -10.57% | 80.11% | 60.43% | 24.10% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,962,000K ÷ ($6,973,000K + $6,396,000K)
= 29.64%
EBay Inc.'s return on total capital has exhibited significant volatility over the past five years. The company experienced a notable decline in performance in 2022, with a negative return indicating that the capital employed did not generate profits during that period. However, in 2023, there was a rebound in performance, with a return of 13.75%, indicating that the company was able to generate a positive return on the total capital employed. The returns in 2020 and 2019 were particularly strong, at 32.83% and 22.59%, respectively, indicating efficient utilization of capital to generate profits during those years. Overall, EBay Inc.'s return on total capital has shown variability, with performance being mixed across the years analyzed.
Peer comparison
Dec 31, 2023