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.