eBay Inc (EBAY)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,537,000 | 2,362,000 | 3,228,000 | 3,185,000 | 3,381,000 | 3,439,000 | 1,688,000 | 642,000 | -1,755,000 | -3,888,000 | -3,382,000 | -2,227,000 | 177,000 | 3,468,000 | 3,649,000 | 3,954,000 | 3,714,000 | 2,807,000 | 2,553,000 | 2,347,000 |
| Interest expense (ttm) | US$ in thousands | 259,000 | 259,000 | 261,000 | 261,000 | 263,000 | 253,000 | 217,000 | 183,000 | 165,000 | 2,972,000 | 2,990,000 | 3,017,000 | 3,048,000 | 761,000 | 809,000 | 933,000 | 854,000 | 357,000 | 404,000 | 301,000 |
| Interest coverage | 9.80 | 9.12 | 12.37 | 12.20 | 12.86 | 13.59 | 7.78 | 3.51 | -10.64 | -1.31 | -1.13 | -0.74 | 0.06 | 4.56 | 4.51 | 4.24 | 4.35 | 7.86 | 6.32 | 7.80 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,537,000K ÷ $259,000K
= 9.80
The interest coverage ratio of eBay Inc has fluctuated significantly over the reported periods. The interest coverage ratio indicates the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher ratio implies better financial health and lower risk of default on interest payments.
From March 2020 to December 2021, eBay Inc's interest coverage ratio showed a declining trend, dropping from 7.80 to 0.06. This steep decline could indicate a deteriorating ability to cover interest expenses with operating income.
However, in the following periods from March 2022 to June 2024, there was a notable improvement in the interest coverage ratio, with the ratio increasing consistently to reach values ranging between 9.12 and 12.37. This improvement suggests that eBay Inc's earnings were more than sufficient to cover its interest expenses during those periods.
Overall, it is crucial for investors and stakeholders to closely monitor eBay Inc's interest coverage ratio to assess the company's financial health and ability to service its debt obligations. The recent positive trend in the interest coverage ratio indicates a potential strengthening of eBay Inc's financial position, but continued monitoring is essential to ensure sustained financial stability.
Peer comparison
Dec 31, 2024