eBay Inc (EBAY)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.75 | 3.38 | 4.05 | 2.72 | 5.42 |
Based on the provided solvency ratios for eBay Inc, it is evident that the company has consistently maintained a strong solvency position over the years.
The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00 for the years 2020, 2021, 2022, 2023, and 2024. This indicates that eBay Inc has no debt obligations in relation to its assets, capital, or equity during these periods, reflecting a debt-free capital structure.
Looking at the Financial leverage ratio, we observe a decreasing trend from 5.42 in 2020 to 3.75 in 2024. This suggests that eBay Inc has been effectively managing its financial leverage by reducing its reliance on debt financing relative to equity over the years. A lower financial leverage ratio indicates a lower level of financial risk and dependency on debt to support its operations.
In conclusion, eBay Inc's solvency ratios demonstrate a stable and healthy financial position with minimal debt obligations and a decreasing reliance on debt financing, which positions the company well to weather financial challenges and capitalize on growth opportunities.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 9.80 | 15.10 | -5.81 | 2.48 | 12.00 |
The interest coverage ratio reflects eBay Inc's ability to cover its interest expenses with operating earnings. Looking at the data provided, the interest coverage ratio has shown fluctuations over the years.
In December 31, 2020, eBay Inc had a healthy interest coverage ratio of 12.00, indicating that the company was generating sufficient operating income to cover its interest expenses comfortably.
However, by December 31, 2021, the interest coverage ratio declined to 2.48, which may raise concerns about the company's ability to meet its interest obligations with its operating income alone.
The situation worsened significantly by December 31, 2022, when the interest coverage ratio turned negative at -5.81. This suggests that eBay Inc's operating earnings were insufficient to cover its interest expenses, which could signal financial distress.
Fortunately, the company's financial position improved by December 31, 2023, with an impressive interest coverage ratio of 15.10, indicating a strong ability to meet interest payments from operating income.
By December 31, 2024, eBay Inc maintained a relatively healthy interest coverage ratio of 9.80, which suggests that the company was still capable of comfortably covering its interest expenses with its operating earnings.
In conclusion, while eBay Inc experienced fluctuations in its interest coverage ratio over the years, it is crucial for investors and stakeholders to closely monitor the company's financial performance to ensure its ability to meet its interest obligations in a sustainable manner.