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.