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.
Peer comparison
Dec 31, 2023