Stock Analysis on Net
Stock Analysis on Net

eBay Inc. (NASDAQ:EBAY)

This company has been moved to the archive! The financial data has not been updated since October 24, 2019.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

eBay Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Federal 73 1,426 689 363 492
State and local 25 (17) 55 22 20
Foreign 245 150 178 106 165
Current 343 1,559 922 491 677
Federal (488) 1,788 77 (53) 2,808
State and local (10) 4 — (2) 14
Foreign 345 (63) (4,633) 23 (14)
Deferred (153) 1,729 (4,556) (32) 2,808
Provision (benefit) for income taxes 190 3,288 (3,634) 459 3,485

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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. eBay Inc. current increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. eBay Inc. deferred increased from 2016 to 2017 but then slightly decreased from 2017 to 2018.
Provision (benefit) for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. eBay Inc. provision (benefit) for income taxes increased from 2016 to 2017 but then slightly decreased from 2017 to 2018.

Effective Income Tax Rate (EITR)

eBay Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Federal statutory tax rate 21.00% 35.00% 35.00% 35.00% 35.00%
Effective income tax rate 6.99% 35.00% 35.00% 19.08% 98.70%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

Components of Deferred Tax Assets and Liabilities

eBay Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net operating loss, capital loss and credits 136 86 78 206 172
Accruals and allowances 168 129 222 209 371
Stock-based compensation 22 40 65 65 161
Amortizable tax basis in intangibles 4,757 5,164 4,621 — —
Net unrealized losses — — — 8 19
Net deferred tax assets 5,083 5,419 4,986 488 723
Valuation allowance (65) (19) (37) (41) (49)
Deferred tax assets 5,018 5,400 4,949 447 674
Unremitted foreign earnings (2,930) (3,514) (1,578) (1,656) (2,995)
Acquisition-related intangibles (46) (24) (29) (19) (160)
Depreciation and amortization (132) (89) (158) (190) (398)
Net unrealized gain (27) (2) — — —
Available-for-sale securities (15) (2) (29) (251) (285)
Other — — — — (24)
Deferred tax liabilities (3,150) (3,631) (1,794) (2,116) (3,862)
Net deferred tax assets and liabilities 1,868 1,769 3,155 (1,669) (3,188)

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).

Item Description The company
Net deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. eBay Inc. net deferred tax assets increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. eBay Inc. deferred tax assets increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level.
Net deferred tax assets and liabilities Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. eBay Inc. net deferred tax assets and liabilities decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.

Adjustments to Financial Statements: Removal of Deferred Taxes

eBay Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Adjustment to Total Assets
Total assets (as reported) 22,819 25,981 23,847 17,785 45,132
Less: Noncurrent deferred tax assets, net 4,792 5,195 4,608 — —
Total assets (adjusted) 18,027 20,786 19,239 17,785 45,132
Adjustment to Total Liabilities
Total liabilities (as reported) 16,538 17,918 13,308 11,209 25,226
Less: Noncurrent deferred tax liabilities, net 2,925 3,425 1,888 2,092 792
Total liabilities (adjusted) 13,613 14,493 11,420 9,117 24,434
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 6,281 8,063 10,539 6,576 19,906
Less: Net deferred tax assets (liabilities) 1,868 1,769 3,155 (1,669) (3,188)
Stockholders’ equity (adjusted) 4,413 6,294 7,384 8,245 23,094
Adjustment to Net Income (loss)
Net income (loss) (as reported) 2,530 (1,016) 7,266 1,725 46
Add: Deferred income tax expense (benefit) (153) 1,729 (4,556) (32) 2,808
Net income (loss) (adjusted) 2,377 713 2,710 1,693 2,854

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).

eBay Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

eBay Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net Profit Margin
Reported net profit margin 23.54% -10.62% 80.92% 20.08% 0.26%
Adjusted net profit margin 22.12% 7.45% 30.18% 19.70% 15.94%
Total Asset Turnover
Reported total asset turnover 0.47 0.37 0.38 0.48 0.40
Adjusted total asset turnover 0.60 0.46 0.47 0.48 0.40
Financial Leverage
Reported financial leverage 3.63 3.22 2.26 2.70 2.27
Adjusted financial leverage 4.08 3.30 2.61 2.16 1.95
Return on Equity (ROE)
Reported ROE 40.28% -12.60% 68.94% 26.23% 0.23%
Adjusted ROE 53.86% 11.33% 36.70% 20.53% 12.36%
Return on Assets (ROA)
Reported ROA 11.09% -3.91% 30.47% 9.70% 0.10%
Adjusted ROA 13.19% 3.43% 14.09% 9.52% 6.32%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. eBay Inc. adjusted net profit margin ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. eBay Inc. adjusted total asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 eBay Inc. adjusted financial leverage ratio increased from 2016 to 2017 and from 2017 to 2018.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. eBay Inc. adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. eBay Inc. adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

eBay Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 2,530 (1,016) 7,266 1,725 46
Net revenues 10,746 9,567 8,979 8,592 17,902
Profitability Ratio
Net profit margin1 23.54% -10.62% 80.92% 20.08% 0.26%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 2,377 713 2,710 1,693 2,854
Net revenues 10,746 9,567 8,979 8,592 17,902
Profitability Ratio
Adjusted net profit margin2 22.12% 7.45% 30.18% 19.70% 15.94%

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).

2018 Calculations

1 Net profit margin = 100 × Net income (loss) ÷ Net revenues
= 100 × 2,530 ÷ 10,746 = 23.54%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Net revenues
= 100 × 2,377 ÷ 10,746 = 22.12%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. eBay Inc. adjusted net profit margin ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net revenues 10,746 9,567 8,979 8,592 17,902
Total assets 22,819 25,981 23,847 17,785 45,132
Activity Ratio
Total asset turnover1 0.47 0.37 0.38 0.48 0.40
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net revenues 10,746 9,567 8,979 8,592 17,902
Adjusted total assets 18,027 20,786 19,239 17,785 45,132
Activity Ratio
Adjusted total asset turnover2 0.60 0.46 0.47 0.48 0.40

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).

2018 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 10,746 ÷ 22,819 = 0.47

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 10,746 ÷ 18,027 = 0.60

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. eBay Inc. adjusted total asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Total assets 22,819 25,981 23,847 17,785 45,132
Stockholders’ equity 6,281 8,063 10,539 6,576 19,906
Solvency Ratio
Financial leverage1 3.63 3.22 2.26 2.70 2.27
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 18,027 20,786 19,239 17,785 45,132
Adjusted stockholders’ equity 4,413 6,294 7,384 8,245 23,094
Solvency Ratio
Adjusted financial leverage2 4.08 3.30 2.61 2.16 1.95

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).

2018 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 22,819 ÷ 6,281 = 3.63

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 18,027 ÷ 4,413 = 4.08

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 eBay Inc. adjusted financial leverage ratio increased from 2016 to 2017 and from 2017 to 2018.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 2,530 (1,016) 7,266 1,725 46
Stockholders’ equity 6,281 8,063 10,539 6,576 19,906
Profitability Ratio
ROE1 40.28% -12.60% 68.94% 26.23% 0.23%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 2,377 713 2,710 1,693 2,854
Adjusted stockholders’ equity 4,413 6,294 7,384 8,245 23,094
Profitability Ratio
Adjusted ROE2 53.86% 11.33% 36.70% 20.53% 12.36%

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).

2018 Calculations

1 ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 2,530 ÷ 6,281 = 40.28%

2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 2,377 ÷ 4,413 = 53.86%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. eBay Inc. adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 2,530 (1,016) 7,266 1,725 46
Total assets 22,819 25,981 23,847 17,785 45,132
Profitability Ratio
ROA1 11.09% -3.91% 30.47% 9.70% 0.10%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 2,377 713 2,710 1,693 2,854
Adjusted total assets 18,027 20,786 19,239 17,785 45,132
Profitability Ratio
Adjusted ROA2 13.19% 3.43% 14.09% 9.52% 6.32%

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).

2018 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 2,530 ÷ 22,819 = 11.09%

2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 2,377 ÷ 18,027 = 13.19%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. eBay Inc. adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.