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 Investments

Microsoft Excel

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

eBay Inc., adjustment to net income (loss)

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net income (loss) (as reported) 2,530 (1,016) 7,266 1,725 46
Add: Unrealized gains (losses) on investments, net (31) (43) (480) (131) 71
Net income (loss) (adjusted) 2,499 (1,059) 6,786 1,594 117

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

eBay Inc., adjusted profitability 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 23.26% -11.07% 75.58% 18.55% 0.65%
Return on Equity (ROE)
Reported ROE 40.28% -12.60% 68.94% 26.23% 0.23%
Adjusted ROE 39.79% -13.13% 64.39% 24.24% 0.59%
Return on Assets (ROA)
Reported ROA 11.09% -3.91% 30.47% 9.70% 0.10%
Adjusted ROA 10.95% -4.08% 28.46% 8.96% 0.26%

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).

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

eBay Inc., Profitability 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 2,499 (1,059) 6,786 1,594 117
Net revenues 10,746 9,567 8,979 8,592 17,902
Profitability Ratio
Adjusted net profit margin2 23.26% -11.07% 75.58% 18.55% 0.65%

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 × 2,499 ÷ 10,746 = 23.26%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. eBay Inc. adjusted net profit margin ratio deteriorated from 2016 to 2017 but then slightly improved 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 2,499 (1,059) 6,786 1,594 117
Stockholders’ equity 6,281 8,063 10,539 6,576 19,906
Profitability Ratio
Adjusted ROE2 39.79% -13.13% 64.39% 24.24% 0.59%

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) ÷ Stockholders’ equity
= 100 × 2,499 ÷ 6,281 = 39.79%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. eBay Inc. adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 2,499 (1,059) 6,786 1,594 117
Total assets 22,819 25,981 23,847 17,785 45,132
Profitability Ratio
Adjusted ROA2 10.95% -4.08% 28.46% 8.96% 0.26%

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) ÷ Total assets
= 100 × 2,499 ÷ 22,819 = 10.95%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. eBay Inc. adjusted ROA deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.