eBay Inc (EBAY)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,973,000 | 7,721,000 | 7,727,000 | 7,740,000 | 6,738,000 |
| Total assets | US$ in thousands | 21,620,000 | 20,850,000 | 26,626,000 | 19,310,000 | 18,174,000 |
| Debt-to-assets ratio | 0.32 | 0.37 | 0.29 | 0.40 | 0.37 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,973,000K ÷ $21,620,000K
= 0.32
The debt-to-assets ratio of EBay Inc. has fluctuated over the past five years. In 2023, the ratio decreased to 0.36 from 0.43 in 2022. This indicates that EBay relied less on debt financing relative to its total assets in 2023 compared to the previous year. Further back, in 2021, the ratio was at 0.34, showing a lower level of debt compared to both 2020 and 2019, where the ratios were 0.40 and 0.43, respectively.
Overall, the trend suggests that EBay has been managing its debt levels efficiently over the years. A decreasing trend in the debt-to-assets ratio may indicate that the company has been reducing its reliance on debt to finance its operations and investments, which could signify a stronger financial position and lower risk of financial distress. However, it is essential to consider other factors such as interest rates, economic conditions, and industry benchmarks to gain a more holistic understanding of EBay's debt management strategy.
Peer comparison
Dec 31, 2023