Analysis of Debt
Total Debt (Carrying Amount)
eBay Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
The annual reported debt data reveals the following trends for the company over the five-year period ending December 31, 2018.
- Short-term debt
- The short-term debt figures show considerable volatility. It started at 850 million US dollars in 2014, increased to 1,451 million in 2016 after a missing value in 2015, then decreased to 781 million in 2017 before rising sharply again to 1,546 million in 2018. This pattern suggests variability in the company's short-term financing needs or liquidity management approaches across these years.
- Long-term debt
- Long-term debt displayed a generally upward trajectory with some fluctuation. It was relatively stable between 2014 (6,777 million) and 2015 (6,779 million), then rose to 7,509 million in 2016 and peaked at 9,234 million in 2017. However, in 2018, it decreased to 7,685 million. This indicates that the company expanded its long-term borrowing significantly until 2017 before reducing it somewhat in the final year observed.
- Total debt (carrying amount)
- Total debt, combining short-term and long-term obligations, largely mirrored the trends in long-term debt due to its higher absolute values. Starting at 7,627 million in 2014, total debt decreased in 2015 to 6,779 million, then rose substantially to reach a peak of 10,015 million in 2017. By 2018, it had declined to 9,231 million. The increase up to 2017 suggests an expansion in overall leverage, followed by a modest deleveraging or refinancing in 2018.
Total Debt (Fair Value)
| Dec 31, 2018 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Senior notes | 9,000) |
| Other indebtedness, long-term | —) |
| Other indebtedness, short-term | 4) |
| Total debt (fair value) | 9,004) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.98 |
Based on: 10-K (reporting date: 2018-12-31).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt: 3.45%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.12% | 400) | 12) | |
| 3.50% | 400) | 14) | |
| 2.35% | 1,150) | 27) | |
| 3.39% | 500) | 17) | |
| 2.34% | 500) | 12) | |
| 2.99% | 750) | 22) | |
| 3.99% | 750) | 30) | |
| 2.68% | 1,000) | 27) | |
| 2.87% | 750) | 21) | |
| 3.53% | 750) | 26) | |
| 3.69% | 850) | 31) | |
| 4.11% | 750) | 31) | |
| 6.55% | 750) | 49) | |
| Total | 9,300) | 321) | |
| 3.45% | |||
Based on: 10-K (reporting date: 2018-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 321 ÷ 9,300 = 3.45%