eBay Inc (EBAY)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	21,620,000	20,850,000	26,626,000	19,310,000	18,174,000
Total stockholders’ equity	US$ in thousands	6,396,000	5,153,000	9,778,000	3,561,000	2,870,000
Financial leverage ratio		3.38	4.05	2.72	5.42	6.33

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,620,000K ÷ $6,396,000K
= 3.38

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. A higher financial leverage ratio indicates a greater proportion of debt in the company's capital structure.

Over the past five years, EBay Inc.'s financial leverage ratio has fluctuated significantly. In 2019, the ratio was relatively high at 6.33, indicating a heavy reliance on debt to fund its business activities. However, in the following years, the ratio decreased, reaching 2.72 in 2021, suggesting a decrease in the company's debt burden.

Subsequently, in 2022, the financial leverage ratio increased to 4.05, indicating a higher level of debt relative to equity. The ratio further increased to 3.38 in 2023, though it remained lower than the levels observed in 2019 and 2020.

Overall, EBay Inc.'s financial leverage ratio has shown volatility over the years, reflecting changes in the company's financing strategy and capital structure. It is important for investors and stakeholders to monitor this ratio to assess the company's financial risk and stability.