eBay Inc (EBAY)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,537,000 | 2,362,000 | 3,228,000 | 3,185,000 | 3,381,000 | 3,439,000 | 1,688,000 | 642,000 | -1,755,000 | -3,888,000 | -3,382,000 | -2,227,000 | 177,000 | 3,468,000 | 3,649,000 | 3,954,000 | 3,714,000 | 2,807,000 | 2,553,000 | 2,347,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,158,000 | 5,420,000 | 5,525,000 | 6,273,000 | 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 |
| Return on total capital | 49.19% | 43.58% | 58.43% | 50.77% | 52.86% | 58.30% | 32.04% | 11.92% | -34.06% | -80.12% | -64.51% | -31.57% | 1.81% | 31.69% | 28.03% | 104.88% | 104.30% | 96.13% | 87.97% | 110.97% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,537,000K ÷ ($—K + $5,158,000K)
= 49.19%
The return on total capital for eBay Inc has shown fluctuating performance over the past few years, based on the provided data. The ratio ranged from a high of 110.97% in March 2020 to a low of -80.12% in September 2022, indicating significant volatility in the company's ability to generate returns relative to its total capital employed.
The return on total capital decreased steadily from 2020 to 2022, reflecting potential challenges or inefficiencies in the company's capital utilization during that period. However, there was a notable recovery starting in March 2023, with the ratio steadily increasing to 49.19% by December 2024.
This improvement suggests that eBay Inc may have implemented strategic measures to enhance the efficiency of its capital allocation or operational performance. Investors and analysts will likely closely monitor future trends in the return on total capital to assess the company's financial health and sustainability of its returns relative to the capital invested.
Peer comparison
Dec 31, 2024