Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
eBay Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | eBay Inc. debt to equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | eBay Inc. debt to capital ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | eBay Inc. debt to assets ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | eBay Inc. financial leverage ratio increased from 2016 to 2017 and from 2017 to 2018. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | eBay Inc. interest coverage ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | eBay Inc. fixed charge coverage ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018. |
Debt to Equity
eBay Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 1,546) | 781) | 1,451) | —) | 850) | |
| Long-term debt | 7,685) | 9,234) | 7,509) | 6,779) | 6,777) | |
| Total debt | 9,231) | 10,015) | 8,960) | 6,779) | 7,627) | |
| Stockholders’ equity | 6,281) | 8,063) | 10,539) | 6,576) | 19,906) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.47 | 1.24 | 0.85 | 1.03 | 0.38 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Amazon.com Inc. | — | — | — | — | — | |
| Home Depot Inc. | — | — | — | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | |
| TJX Cos. Inc. | — | — | — | — | — | |
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).
1 2018 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 9,231 ÷ 6,281 = 1.47
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | eBay Inc. debt to equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Debt to Capital
eBay Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 1,546) | 781) | 1,451) | —) | 850) | |
| Long-term debt | 7,685) | 9,234) | 7,509) | 6,779) | 6,777) | |
| Total debt | 9,231) | 10,015) | 8,960) | 6,779) | 7,627) | |
| Stockholders’ equity | 6,281) | 8,063) | 10,539) | 6,576) | 19,906) | |
| Total capital | 15,512) | 18,078) | 19,499) | 13,355) | 27,533) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.60 | 0.55 | 0.46 | 0.51 | 0.28 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Amazon.com Inc. | — | — | — | — | — | |
| Home Depot Inc. | — | — | — | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | |
| TJX Cos. Inc. | — | — | — | — | — | |
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).
1 2018 Calculation
Debt to capital = Total debt ÷ Total capital
= 9,231 ÷ 15,512 = 0.60
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | eBay Inc. debt to capital ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Debt to Assets
eBay Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 1,546) | 781) | 1,451) | —) | 850) | |
| Long-term debt | 7,685) | 9,234) | 7,509) | 6,779) | 6,777) | |
| Total debt | 9,231) | 10,015) | 8,960) | 6,779) | 7,627) | |
| Total assets | 22,819) | 25,981) | 23,847) | 17,785) | 45,132) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.40 | 0.39 | 0.38 | 0.38 | 0.17 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Amazon.com Inc. | — | — | — | — | — | |
| Home Depot Inc. | — | — | — | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | |
| TJX Cos. Inc. | — | — | — | — | — | |
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).
1 2018 Calculation
Debt to assets = Total debt ÷ Total assets
= 9,231 ÷ 22,819 = 0.40
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | eBay Inc. debt to assets ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Financial Leverage
eBay Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Amazon.com Inc. | — | — | — | — | — | |
| Home Depot Inc. | — | — | — | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | |
| TJX Cos. Inc. | — | — | — | — | — | |
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).
1 2018 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 22,819 ÷ 6,281 = 3.63
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | eBay Inc. financial leverage ratio increased from 2016 to 2017 and from 2017 to 2018. |
Interest Coverage
eBay Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 2,530) | (1,016) | 7,266) | 1,725) | 46) | |
| Less: Income (loss) from discontinued operations, net of income taxes | 2) | (4) | (19) | (222) | —) | |
| Add: Income tax expense | 190) | 3,288) | (3,634) | 459) | 3,485) | |
| Add: Interest expense | 326) | 292) | 225) | 144) | 123) | |
| Earnings before interest and tax (EBIT) | 3,044) | 2,568) | 3,876) | 2,550) | 3,654) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 9.34 | 8.79 | 17.23 | 17.71 | 29.71 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Amazon.com Inc. | — | — | — | — | — | |
| Home Depot Inc. | — | — | — | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | |
| TJX Cos. Inc. | — | — | — | — | — | |
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).
1 2018 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,044 ÷ 326 = 9.34
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | eBay Inc. interest coverage ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018. |
Fixed Charge Coverage
eBay Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 2,530) | (1,016) | 7,266) | 1,725) | 46) | |
| Less: Income (loss) from discontinued operations, net of income taxes | 2) | (4) | (19) | (222) | —) | |
| Add: Income tax expense | 190) | 3,288) | (3,634) | 459) | 3,485) | |
| Add: Interest expense | 326) | 292) | 225) | 144) | 123) | |
| Earnings before interest and tax (EBIT) | 3,044) | 2,568) | 3,876) | 2,550) | 3,654) | |
| Add: Rent expense | 118) | 105) | 84) | 79) | 159) | |
| Earnings before fixed charges and tax | 3,162) | 2,673) | 3,960) | 2,629) | 3,813) | |
| Interest expense | 326) | 292) | 225) | 144) | 123) | |
| Rent expense | 118) | 105) | 84) | 79) | 159) | |
| Fixed charges | 444) | 397) | 309) | 223) | 282) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 7.12 | 6.73 | 12.82 | 11.79 | 13.52 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Amazon.com Inc. | — | — | — | — | — | |
| Home Depot Inc. | — | — | — | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | |
| TJX Cos. Inc. | — | — | — | — | — | |
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).
1 2018 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,162 ÷ 444 = 7.12
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | eBay Inc. fixed charge coverage ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018. |