eBay Inc (EBAY)
Debt-to-equity 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-equity ratio | 1.09 | 0.00 | 0.00 | 0.00 | 1.50 | 0.00 | 0.00 | 0.00 | 0.79 | 0.00 | 0.00 | 0.00 | 2.17 | 0.00 | 0.00 | 3.65 | 2.35 | 2.21 | 1.76 | 1.48 |
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 exhibited fluctuations over the past eight quarters, ranging from a low of 1.18 in Q1 2022 to a high of 1.72 in Q4 2022. This ratio measures the proportion of debt and equity used to finance the company's assets, indicating the level of financial leverage. A higher ratio suggests that the company is relying more on debt to finance its operations, which can increase financial risk due to higher interest payments and potential cash flow constraints. Conversely, a lower ratio indicates a stronger financial position with a greater proportion of equity financing.
EBay's debt-to-equity ratio peaked at 1.72 in Q4 2022, indicating a higher reliance on debt during that period. However, the ratio decreased in subsequent quarters, reaching 1.18 in Q1 2022, reflecting a more conservative financing structure with a higher proportion of equity. It rose consistently over the next three quarters, reaching 1.47 in Q2 2023.
Overall, the fluctuations in EBay's debt-to-equity ratio suggest varying levels of risk management and capital structure decisions by the company. It is important for stakeholders to monitor these changes to assess the company's risk profile and financial stability.
Peer comparison
Dec 31, 2023