eBay Inc (EBAY)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 6,396,000 | 5,153,000 | 9,778,000 | 3,561,000 | 2,870,000 |
| Debt-to-equity ratio | 1.09 | 1.50 | 0.79 | 2.17 | 2.35 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,973,000K ÷ $6,396,000K
= 1.09
The debt-to-equity ratio for eBay Inc. has shown a fluctuating trend over the past five years. In 2019 and 2020, the ratio was relatively high at 2.70 and 2.18, indicating that the company relied more on debt to finance its operations compared to shareholders' equity.
However, there was a significant decrease in the ratio in 2021 to 0.93, suggesting that eBay reduced its reliance on debt and improved its financial leverage by increasing equity. This was a positive sign for the company as it showed a stronger balance between debt and equity in its capital structure.
In 2022 and 2023, the ratio increased to 1.72 and 1.21, respectively, indicating a higher level of debt relative to equity compared to 2021. Despite the increase from 2021, the current ratio of 1.21 is still lower than the ratios in 2019 and 2020, which indicates that eBay has not returned to previous levels of high leverage.
Overall, eBay Inc.'s debt-to-equity ratio has shown fluctuations in recent years, with a notable improvement in 2021 and subsequent increases in 2022 and 2023. Analyzing these ratios alongside other financial metrics can provide a more comprehensive understanding of the company's financial health and leverage strategies.
Peer comparison
Dec 31, 2023