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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

eBay Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2019 60.86% = 10.63% × 5.72
Jun 30, 2019 58.48% = 11.34% × 5.16
Mar 31, 2019 50.76% = 11.83% × 4.29
Dec 31, 2018 40.28% = 11.09% × 3.63
Sep 30, 2018 -11.99% = -3.51% × 3.41
Jun 30, 2018 -14.40% = -4.29% × 3.36
Mar 31, 2018 -21.64% = -6.70% × 3.23
Dec 31, 2017 -12.60% = -3.91% × 3.22
Sep 30, 2017 66.66% = 28.99% × 2.30
Jun 30, 2017 64.59% = 26.97% × 2.40
Mar 31, 2017 67.43% = 31.52% × 2.14
Dec 31, 2016 68.94% = 30.47% × 2.26
Sep 30, 2016 26.50% = 8.81% × 3.01
Jun 30, 2016 29.96% = 9.67% × 3.10
Mar 31, 2016 25.03% = 8.06% × 3.10
Dec 31, 2015 26.23% = 9.70% × 2.70
Sep 30, 2015 34.98% = 12.38% × 2.82
Jun 30, 2015 12.14% = 5.27% × 2.31
Mar 31, 2015 15.34% = 6.69% × 2.30
Dec 31, 2014 0.23% = 0.10% × 2.27
Sep 30, 2014 — = — × 2.25
Jun 30, 2014 — = — × 2.20
Mar 31, 2014 — = — × 2.07

Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2019 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

eBay Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2019 60.86% = 18.33% × 0.58 × 5.72
Jun 30, 2019 58.48% = 22.12% × 0.51 × 5.16
Mar 31, 2019 50.76% = 24.43% × 0.48 × 4.29
Dec 31, 2018 40.28% = 23.54% × 0.47 × 3.63
Sep 30, 2018 -11.99% = -7.93% × 0.44 × 3.41
Jun 30, 2018 -14.40% = -10.05% × 0.43 × 3.36
Mar 31, 2018 -21.64% = -16.56% × 0.40 × 3.23
Dec 31, 2017 -12.60% = -10.62% × 0.37 × 3.22
Sep 30, 2017 66.66% = 80.45% × 0.36 × 2.30
Jun 30, 2017 64.59% = 80.93% × 0.33 × 2.40
Mar 31, 2017 67.43% = 86.31% × 0.37 × 2.14
Dec 31, 2016 68.94% = 80.92% × 0.38 × 2.26
Sep 30, 2016 26.50% = 20.29% × 0.43 × 3.01
Jun 30, 2016 29.96% = 22.00% × 0.44 × 3.10
Mar 31, 2016 25.03% = 18.24% × 0.44 × 3.10
Dec 31, 2015 26.23% = 20.08% × 0.48 × 2.70
Sep 30, 2015 34.98% = 20.29% × 0.61 × 2.82
Jun 30, 2015 12.14% = 17.89% × 0.29 × 2.31
Mar 31, 2015 15.34% = 19.09% × 0.35 × 2.30
Dec 31, 2014 0.23% = 0.26% × 0.40 × 2.27
Sep 30, 2014 — = — × — × 2.25
Jun 30, 2014 — = — × — × 2.20
Mar 31, 2014 — = — × — × 2.07

Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2019 is the increase in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

eBay Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2019 10.63% = 18.33% × 0.58
Jun 30, 2019 11.34% = 22.12% × 0.51
Mar 31, 2019 11.83% = 24.43% × 0.48
Dec 31, 2018 11.09% = 23.54% × 0.47
Sep 30, 2018 -3.51% = -7.93% × 0.44
Jun 30, 2018 -4.29% = -10.05% × 0.43
Mar 31, 2018 -6.70% = -16.56% × 0.40
Dec 31, 2017 -3.91% = -10.62% × 0.37
Sep 30, 2017 28.99% = 80.45% × 0.36
Jun 30, 2017 26.97% = 80.93% × 0.33
Mar 31, 2017 31.52% = 86.31% × 0.37
Dec 31, 2016 30.47% = 80.92% × 0.38
Sep 30, 2016 8.81% = 20.29% × 0.43
Jun 30, 2016 9.67% = 22.00% × 0.44
Mar 31, 2016 8.06% = 18.24% × 0.44
Dec 31, 2015 9.70% = 20.08% × 0.48
Sep 30, 2015 12.38% = 20.29% × 0.61
Jun 30, 2015 5.27% = 17.89% × 0.29
Mar 31, 2015 6.69% = 19.09% × 0.35
Dec 31, 2014 0.10% = 0.26% × 0.40
Sep 30, 2014 — = — × —
Jun 30, 2014 — = — × —
Mar 31, 2014 — = — × —

Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2019 is the decrease in profitability measured by net profit margin ratio.