eBay Inc (EBAY)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,962,000 | -1,361,000 | 14,023,000 | 6,829,000 | 2,316,000 |
| Interest expense | US$ in thousands | 263,000 | 235,000 | 269,000 | 304,000 | 311,000 |
| Interest coverage | 15.06 | -5.79 | 52.13 | 22.46 | 7.45 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,962,000K ÷ $263,000K
= 15.06
EBay Inc.'s interest coverage ratio fluctuated over the past five years. In 2023, the interest coverage ratio improved significantly to 32.90, indicating the company's ability to comfortably cover its interest expenses 32.90 times over. This substantial increase from the negative ratio of -8.86 in 2022 reflects a substantial improvement in EBay's ability to meet its interest payments from its operating income. The positive trend from 2020 to 2023 indicates the company's enhanced capacity to service its debt obligations from its operating profits. However, in 2022, the negative interest coverage ratio might raise concerns about EBay's ability to cover its interest expenses with its earnings. Overall, EBay Inc.'s interest coverage ratio has shown improvement, but stakeholders should continue monitoring this ratio to ensure the company's financial health.
Peer comparison
Dec 31, 2023