eBay Inc (EBAY)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,537,000 | 3,970,000 | -1,366,000 | 667,000 | 3,649,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,158,000 | 6,396,000 | 5,153,000 | 9,778,000 | 3,561,000 |
| Return on total capital | 49.19% | 62.07% | -26.51% | 6.82% | 102.47% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,537,000K ÷ ($—K + $5,158,000K)
= 49.19%
eBay Inc's return on total capital has experienced fluctuations over the past five years. In December 2020, the return was exceptionally high at 102.47%, indicating that the company generated significantly more profit relative to its total capital invested. However, this strong performance was not sustained as the return dropped to 6.82% by December 2021, suggesting a significant decline in profitability.
The trend worsened in December 2022 when the return on total capital turned negative at -26.51%, indicating that the company was not effectively utilizing its capital to generate profits. eBay Inc's performance improved in December 2023 with a return on total capital of 62.07%, signaling a recovery in profitability.
By December 2024, the return on total capital stood at 49.19%, showing a slight decrease from the previous year but still reflecting a reasonably healthy profitability level. Overall, eBay Inc's return on total capital has exhibited volatility, with periods of both strong performance and challenges in effectively leveraging its capital to generate returns.
Peer comparison
Dec 31, 2024