eBay Inc (EBAY)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,941,000	2,096,000	2,209,000	2,216,000	2,350,000	2,473,000	2,567,000	2,774,000	2,923,000	2,896,000	2,896,000	2,928,000	2,652,000	2,378,000	2,124,000	1,918,000	1,946,000	1,770,000	1,918,000	1,766,000
Interest expense (ttm)	US$ in thousands	116,000	106,000	129,000	141,000	165,000	2,972,000	3,171,000	3,471,000	3,538,000	1,251,000	1,118,000	969,000	854,000	357,000	336,000	233,000	311,000	320,000	325,000	325,000
Interest coverage		16.73	19.77	17.12	15.72	14.24	0.83	0.81	0.80	0.83	2.31	2.59	3.02	3.11	6.66	6.32	8.23	6.26	5.53	5.90	5.43

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,941,000K ÷ $116,000K
= 16.73

EBay Inc.'s interest coverage has shown significant fluctuations over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher ratio indicates that the company is more capable of meeting its interest payments.

In Q4 2023, EBay Inc. had an interest coverage ratio of 32.90, indicating a strong ability to cover its interest expenses with operating income. This represents an improvement compared to previous quarters, where the ratio ranged from 5.67 to -15.99, indicating fluctuations and periods of financial stress.

It is essential for investors and creditors to monitor EBay Inc.'s interest coverage closely to assess its financial health and ability to meet debt obligations. The recent improvement in interest coverage is a positive sign, but the company's performance should be analyzed over a more extended period to assess its long-term financial stability.