eBay Inc (EBAY)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.32 | 0.00 | 0.00 | 0.00 | 0.37 | 0.00 | 0.00 | 0.00 | 0.29 | 0.00 | 0.00 | 0.00 | 0.40 | 0.00 | 0.00 | 0.41 | 0.37 | 0.39 | 0.34 | 0.34 |
| Debt-to-capital ratio | 0.52 | 0.00 | 0.00 | 0.00 | 0.60 | 0.00 | 0.00 | 0.00 | 0.44 | 0.00 | 0.00 | 0.00 | 0.68 | 0.00 | 0.00 | 0.79 | 0.70 | 0.69 | 0.64 | 0.60 |
| Debt-to-equity ratio | 1.09 | 0.00 | 0.00 | 0.00 | 1.50 | 0.00 | 0.00 | 0.00 | 0.79 | 0.00 | 0.00 | 0.00 | 2.17 | 0.00 | 0.00 | 3.65 | 2.35 | 2.21 | 1.76 | 1.48 |
| Financial leverage ratio | 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 | 6.33 | 5.72 | 5.16 | 4.29 |
EBay Inc.'s solvency ratios reflect the company's ability to meet its long-term financial obligations. The debt-to-assets ratio remained relatively stable around 0.36 to 0.39 over the past eight quarters. This suggests that EBay's debt level in relation to its total assets has been well-managed.
The debt-to-capital ratio slightly increased from 0.54 to 0.63 between Q1 2022 and Q4 2022 before fluctuating around 0.55 to 0.59 in the following quarters. This indicates that EBay has been relying more on debt financing compared to its capital structure.
Meanwhile, the debt-to-equity ratio showed fluctuations, reaching a peak of 1.72 in Q4 2022 and then gradually decreasing to 1.21 in Q4 2023. The decreasing trend may suggest that EBay has been reducing its dependence on debt financing relative to shareholders' equity, which is a positive sign for solvency.
The financial leverage ratio has shown a similar pattern, starting at 3.26 in Q1 2022, peaking at 4.05 in Q4 2022, and then gradually declining to 3.38 by Q4 2023. This indicates that EBay's level of financial leverage has moderated over the quarters, potentially reducing the financial risk associated with high levels of debt.
Overall, EBay's solvency ratios demonstrate a trend of managing debt levels relative to assets, capital, equity, and leverage over the analyzed period. However, monitoring these ratios and their trends is crucial to assess the company's long-term financial health and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
EBay Inc.'s interest coverage ratio has shown significant improvement over the quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
In Q4 2023, EBay Inc. reported an interest coverage ratio of 32.90, indicating a strong ability to cover its interest payments with its EBIT. This is a substantial improvement compared to the negative interest coverage ratios in the previous quarters, signaling a positive turnaround in the company's financial health.
The notable increase in the interest coverage ratio from negative values in Q2 2022 to a positive ratio in Q4 2023 suggests that EBay Inc. has enhanced its profitability and operational efficiency. It is essential for investors and creditors to monitor this trend to ensure the company's continued ability to meet its debt obligations and sustain its financial stability.