eBay Inc (EBAY)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,365,000 | 19,915,000 | 20,378,000 | 21,418,000 | 21,620,000 | 21,184,000 | 19,956,000 | 20,004,000 | 20,850,000 | 19,097,000 | 19,653,000 | 22,980,000 | 26,626,000 | 29,257,000 | 31,823,000 | 18,731,000 | 19,310,000 | 18,421,000 | 20,014,000 | 18,929,000 |
| Total stockholders’ equity | US$ in thousands | 5,158,000 | 5,420,000 | 5,525,000 | 6,273,000 | 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 |
| Financial leverage ratio | 3.75 | 3.67 | 3.69 | 3.41 | 3.38 | 3.59 | 3.79 | 3.71 | 4.05 | 3.94 | 3.75 | 3.26 | 2.72 | 2.67 | 2.44 | 4.97 | 5.42 | 6.31 | 6.90 | 8.95 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,365,000K ÷ $5,158,000K
= 3.75
The financial leverage ratio of eBay Inc has shown a declining trend from March 31, 2020, where it was at a high of 8.95, to December 31, 2024, where it decreased to 3.75. This decline indicates that the company has reduced its reliance on debt financing over the years, leading to a stronger financial position with a lower proportion of debt compared to equity.
The ratio peaked in the first quarter of 2020 and has since then been on a decreasing trend, reaching its lowest point in the second and third quarters of 2021 at 2.44 and 2.67, respectively. Subsequently, the ratio gradually increased and stabilized around the 3.5 level from March 2023 to December 2024.
The declining trend in the financial leverage ratio indicates that eBay Inc has been successful in managing its debt levels and optimizing its capital structure. This could signify improved creditworthiness, lower financial risk, and potentially better financial performance in the long term.
Peer comparison
Dec 31, 2024