eBay Inc (EBAY)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.52 | 0.00 | 0.00 | 0.00 | 0.60 | 0.00 | 0.00 | 0.00 | 0.44 | 0.00 | 0.00 | 0.00 | 0.68 | 0.00 | 0.00 | 0.79 | 0.70 | 0.69 | 0.64 | 0.60 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,973,000K ÷ ($6,973,000K + $6,396,000K)
= 0.52
Based on the data provided, the debt-to-capital ratio of EBay Inc. has shown some fluctuations over the past eight quarters. The ratio ranged from 0.54 to 0.63 during this period.
Overall, the trend indicates that the company's reliance on debt in its capital structure has been relatively stable with a slight upward trend in recent quarters. A debt-to-capital ratio of 0.55 to 0.59 suggests that EBay relies on debt for approximately 55% to 59% of its total capital, while the remaining percentage represents the equity portion.
It is worth noting that a higher debt-to-capital ratio indicates a higher level of financial risk due to the increased dependence on debt financing. However, a moderate level of debt can also be beneficial as it allows the company to benefit from the tax advantages of debt and potentially achieve higher returns on equity.
In conclusion, from the observed fluctuations in the debt-to-capital ratio of EBay Inc., it appears that the company has maintained a balanced approach to financing its operations through a mix of debt and equity. However, investors and stakeholders should continue to monitor this ratio alongside other financial metrics to assess the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023