eBay Inc (EBAY)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,941,000 | 2,096,000 | 2,209,000 | 2,216,000 | 2,350,000 | 2,473,000 | 2,567,000 | 2,774,000 | 2,923,000 | 2,896,000 | 2,896,000 | 2,928,000 | 2,652,000 | 2,378,000 | 2,124,000 | 1,918,000 | 1,946,000 | 1,770,000 | 1,918,000 | 1,766,000 |
| Long-term debt | US$ in thousands | 6,973,000 | — | — | — | 7,721,000 | — | — | — | 7,727,000 | — | — | — | 7,740,000 | — | — | 7,724,000 | 6,738,000 | 7,235,000 | 7,243,000 | 7,700,000 |
| Total stockholders’ equity | US$ in thousands | 6,396,000 | 5,899,000 | 5,268,000 | 5,387,000 | 5,153,000 | 4,853,000 | 5,243,000 | 7,054,000 | 9,778,000 | 10,945,000 | 13,016,000 | 3,770,000 | 3,561,000 | 2,920,000 | 2,902,000 | 2,115,000 | 2,870,000 | 3,270,000 | 4,106,000 | 5,203,000 |
| Return on total capital | 14.52% | 35.53% | 41.93% | 41.14% | 18.25% | 50.96% | 48.96% | 39.33% | 16.70% | 26.46% | 22.25% | 77.67% | 23.47% | 81.44% | 73.19% | 19.49% | 20.25% | 16.85% | 16.90% | 13.69% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,941,000K ÷ ($6,973,000K + $6,396,000K)
= 14.52%
EBay Inc.'s return on total capital has shown significant variation over the quarters provided in the table. The return on total capital represents the percentage return generated by the company on its total invested capital, including both debt and equity.
In Q4 2023, the return on total capital was 13.75%, which indicates that EBay generated a return of 13.75% on its total invested capital during that period. This represents a slight decrease from the previous quarter's return of 17.61% in Q3 2023 but remains relatively strong.
Looking back over the past year, EBay has demonstrated a fluctuating performance in terms of return on total capital. The return was negative in Q4 2022 at -10.24% and continued to decline into Q1 2022 with a significant decrease to -12.24%. However, the company began to show improvement in the following quarters, with positive returns in Q2 2022, Q3 2022, and Q4 2023.
Overall, EBay's return on total capital has shown improvements and recovery from previous negative performances, demonstrating the company's ability to generate favorable returns on its invested capital in recent quarters. It is important for investors and stakeholders to continue monitoring this metric to assess the company's efficiency in generating profits relative to the capital invested.
Peer comparison
Dec 31, 2023