eBay Inc. (NASDAQ:EBAY)

Debt to Equity

The ratio exhibited a gradual increase from 0.21 in the first quarter of 2014 to about 0.39 by mid-2015, followed by a sharp rise to over 1.0 in late 2015. After peaking around 1.43 in early 2016, the ratio fluctuated between 0.77 and 1.24 through 2017 and 2018. From 2019 onwards, there was a notable and consistent upward trend, reaching 2.37 by the third quarter of 2019, indicating a growing reliance on debt relative to equity over the period.

Debt to Equity (Including Operating Lease Liability)

This ratio followed the same overall pattern as the standard debt to equity metric but was slightly higher from 2019, peaking at 2.52 by the third quarter of 2019. The inclusion of operating lease liabilities increased leverage ratios, reflecting the impact of recognizing lease obligations in financial commitments.

Debt to Capital

Debt to capital increased moderately from 0.17 in early 2014, doubling by late 2015 (0.53). It then held relatively steady, fluctuating within a range of about 0.44 to 0.60 from 2016 through early 2019. The measure trended upward toward the end of the period, reaching 0.70 in late 2019, indicating an increasing proportion of debt in the company's total capital structure.

Debt to Capital (Including Operating Lease Liability)

When including operating lease liabilities, this ratio matched the general trend but was consistently slightly higher during the later periods, ending at 0.72 in late 2019. This adjustment again signifies the increasing role of lease liabilities in the overall capital mix.

Debt to Assets

This ratio rose from 0.10 at the start of 2014 to about 0.41 by late 2015, then stabilized mostly in the range of 0.36 to 0.40 over the next several years. A slight upward movement was observed at the end of the period, reaching 0.41 in late 2019. This indicates a moderate increase in leverage with respect to asset base.

Debt to Assets (Including Operating Lease Liability)

With operating lease liabilities included, the ratio showed a similar pattern but with marginally higher values in the recent years, reaching 0.44 in the third quarter of 2019, reflecting the expanded debt recognition.

Financial Leverage

Financial leverage showed a rising trend through the entire period. Starting at 2.07 in early 2014, it increased steadily to about 3.1 by early 2016, then declined briefly to around 2.14 in early 2017. From 2017 onward, there was a pronounced upward trajectory, accelerating sharply to reach 5.72 by the third quarter of 2019. This indicates increasing use of debt financing relative to equity, amplifying financial risk.

Total Debt

The total debt shows notable volatility over the observed periods. Initially, it increased significantly from 4,128 million USD at March 31, 2014, reaching a peak of 7,596 million USD by September 30, 2014. After a modest fluctuation, debt rose again sharply around 2016, peaking at 11,466 million USD in June 30, 2017. Subsequently, the debt level exhibits a general decline, dropping to 7,753 million USD by September 30, 2019. This pattern indicates periods of increased leverage followed by deleveraging.

Stockholders’ Equity

Stockholders' equity began at 19,609 million USD on March 31, 2014, maintaining relatively stable values around 19,000 to 20,000 million USD until mid-2015. A sudden and substantial drop to 6,492 million USD by September 30, 2015 occurs and remains at lower levels in subsequent quarters. Although some recovery is seen, peaking at 11,595 million USD on March 31, 2017, the overall trend after 2015 is downward, ending at a markedly lower 3,270 million USD by September 30, 2019. This suggests possible stock repurchasing, dividends, losses, or other equity reductions during the period.

Debt to Equity Ratio

The debt to equity ratio increases markedly over the timeframe, reflecting the relative changes in debt and equity. Starting from a low of 0.21 in March 2014, the ratio rises steadily, surpassing 1.0 in September 2015 and remaining above 1.0 for most of the subsequent period. It peaks at 2.37 in September 2019, indicating that debt levels were more than double the stockholders’ equity at that time. This upward trend in leverage implies a higher reliance on debt financing relative to equity and potentially increased financial risk.

Overall Insights

The data reflect a company that has undergone significant financial restructuring or changes in capital structure between 2014 and 2019. The simultaneous decline in equity and fluctuations in total debt, coupled with a rising debt-to-equity ratio, suggest increasing leverage and a reduction in net equity base. These trends could indicate strategic borrowing, possibly linked to acquisitions, capital expenditures, or shareholder returns. The elevated leverage and lower equity base in later years highlight a potentially higher financial risk profile that may require careful monitoring.

The financial data reveals noteworthy fluctuations in total debt, stockholders’ equity, and the debt-to-equity ratio over the examined periods. These changes illustrate shifts in the company’s financial structure and leverage.

Total Debt (Including Operating Lease Liability)

Total debt exhibits a generally increasing trend from March 31, 2014, through June 30, 2017, rising from approximately $4.1 billion to a peak near $11.5 billion. Subsequent quarters show some volatility but generally maintain levels above $9 billion, with a notable decline in the last reported period to around $8.2 billion. This indicates periods of strategic borrowing or capital expenditure followed by attempts to moderate debt levels.

Stockholders’ Equity

Stockholders’ equity demonstrates a declining pattern over the timeframe, starting near $19.6 billion in early 2014 and reducing significantly to about $3.3 billion by September 30, 2019. The decline is especially steep from June 30, 2017, onward. This contraction in equity may reflect share repurchases, dividend payments exceeding net income, or losses impacting retained earnings, signaling a reduction in the company's net asset base.

Debt to Equity Ratio (Including Operating Lease Liability)

The debt-to-equity ratio shows substantial increases, rising from a low of 0.21 at the beginning of 2014 to above 2.5 by the end of the last reporting period. This sharp growth in leverage is chiefly driven by the aforementioned decline in equity combined with sustained or increased debt levels. Peaks and troughs display some volatility but the overall trajectory points to an increasingly leveraged capital structure.

In summary, the company has progressively increased its financial leverage throughout these periods, evidenced by rising total debt and a shrinking equity base, culminating in a more than tenfold increase in the debt-to-equity ratio. This trend suggests greater reliance on debt financing, which may have implications for financial risk and capital costs going forward.

Total Debt

The total debt exhibits a general upward trend from March 31, 2014, to June 30, 2017, increasing from approximately 4.1 billion to a peak of around 11.5 billion. After this peak, the debt level fluctuates but remains relatively high, staying mostly above 9 billion until mid-2019, where it then decreases to approximately 7.8 billion by September 30, 2019. This pattern indicates a significant increase in borrowing over the initial years followed by some deleveraging in the most recent quarter.

Total Capital

Total capital remains somewhat steady through early 2015, fluctuating between approximately 23.7 billion and 27.4 billion. However, a notable drop is observed in the second half of 2015, declining sharply to around 13.3 billion by December 31, 2015. From 2016 onwards, total capital gradually increases again, peaking near 22.9 billion in mid-2017, and then shows a decreasing trend from that point forward, falling consistently to just over 11 billion by September 2019. This implies volatility in capital structure with a significant contraction around late 2015 followed by a gradual recovery and then decline in subsequent years.

Debt to Capital Ratio

The ratio of debt to capital starts relatively low at 0.17 in the first quarter of 2014 but rises steadily to around 0.28 by the end of 2014, indicating a gradual increase in leverage. A sharp increase is evident in 2015, where the ratio jumps to approximately 0.53 and hovers near the 0.50-0.60 range through to 2017, suggesting leverage more than doubled compared to early 2014 levels. After 2017, the debt to capital ratio continues trending upward, reaching approximately 0.70 by the third quarter of 2019. This upward trajectory reflects increased reliance on debt financing relative to total capital over the period, particularly pronounced after the capital contraction observed in 2015.

Overall Insights

The data reveals a period of rising leverage with increasing total debt and a generally shrinking total capital base in the later years. The significant capital drop in late 2015 may point to asset sales, restructuring, or other balance sheet events that reduced total capital. Despite some recovery in capital, the sustained rise in the debt to capital ratio suggests a growing risk profile or strategic leverage increase. However, the recent reduction in total debt in the latest quarter may indicate measures taken to improve the capital structure and reduce borrowing levels.

Total Debt (including operating lease liability)

The total debt exhibits an overall increasing trend from March 2014 through June 2017, rising from $4,128 million to a peak of $11,466 million. After this peak, the debt fluctuates moderately, generally remaining around the $9,000 million mark through early 2018 to mid-2019, before experiencing a notable decline to $8,250 million by September 2019.

Total Capital (including operating lease liability)

Total capital initially trends upward from $23,737 million in March 2014 to a high of $27,427 million by mid-2015. Subsequently, there is a significant reduction in capital in late 2015, at which point the figures drop to approximately $13,931 million and $13,355 million. From early 2016 through mid-2017, capital levels fluctuate between $15,000 million and $23,000 million, peaking again around $22,940 million in mid-2017. Following this period, total capital displays a consistent downward trajectory through to September 2019, falling to $11,520 million.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio rises steadily from 0.17 in March 2014 to 0.28 by mid-2015, indicating an increase in leverage. A sharp jump occurs in late 2015, with the ratio peaking near 0.53, and it remains elevated around 0.50 to 0.60 in the subsequent quarters. The ratio continues to increase gradually, reaching 0.72 by September 2019. This trend suggests that the company's financial leverage has increased over the analyzed period, with debt comprising a greater proportion of total capital, especially after mid-2015.

Total Debt

The total debt exhibited a general upward trend from March 31, 2014, to June 30, 2017, increasing from $4,128 million to a peak of $11,466 million. Following this peak, total debt declined somewhat but remained relatively elevated, fluctuating between approximately $9,200 million and $10,000 million until mid-2019. By September 30, 2019, total debt decreased to $7,753 million, marking a notable reduction compared to previous quarters.

Total Assets

Total assets showed variability with a general downward trend from December 31, 2015, onwards. Initially, assets were stable and high, around $44,000–$45,000 million between 2014 and 2015, before sharply declining to approximately $17,785 million at the end of 2015, which represents a significant drop. Assets then experienced gradual recovery and increased to about $27,483 million by June 30, 2017. From this point forward, there was a gradual decline in total assets, reaching $18,714 million by September 30, 2019.

Debt to Assets Ratio

The debt to assets ratio rose notably from 0.10 in March 2014 to a high of 0.46 in March 2016, reflecting an increased reliance on debt relative to assets. This elevated level continued through 2016 and early 2017 with ratios mostly above 0.38. There was a brief decline to 0.36 by March 2017, followed by fluctuations between 0.38 and 0.44 up to mid-2019. The ratio ended near 0.41 in September 2019, indicating that despite some reduction in debt and asset values, leverage remained relatively high and stable compared to the earlier period.

Summary

Overall, the company demonstrated an increasing debt load from 2014 to mid-2017, coinciding with a volatile asset base that saw a major decrease around late 2015. The rising debt to assets ratio during this period suggests increasing financial leverage and potentially greater financial risk. After mid-2017, total debt showed signs of moderation and a reduction by the third quarter of 2019, while total assets decreased steadily, resulting in continued moderately high leverage ratios. The trends indicate a period of significant financial restructuring or asset revaluation, followed by efforts to manage and reduce the debt burden while facing declining asset levels.

The financial data reveals notable trends in the company's debt levels, asset base, and leverage ratios over the analyzed periods.

Total Debt (including operating lease liability)

The total debt exhibited considerable fluctuations throughout the observed quarters. Beginning at $4,128 million in the first quarter of 2014, the debt increased substantially to a peak of $11,466 million by mid-2017. Following this peak, the debt experienced a downward adjustment, settling around $8,250 million by the third quarter of 2019. This pattern indicates phases of aggressive debt accumulation followed by deleveraging.

Total Assets

Total assets showed growth initially, rising from approximately $40,545 million in early 2014 to a high of about $27,483 million by mid-2017. However, after reaching this peak, a consistent decline followed, with total assets reducing to roughly $18,714 million by late 2019. This downward trend suggests asset base contractions or possible divestitures during the latter periods.

Debt to Assets Ratio (including operating lease liability)

The debt-to-assets ratio increased progressively from 0.10 in early 2014 to a high of around 0.46 by late 2016. After some oscillation, the ratio maintained elevated levels between 0.38 and 0.46 through 2017 to 2019, signaling sustained relatively high leverage. This indicates that debt grew disproportionately relative to assets, particularly following the asset base reduction observed in the later periods.

Overall, the data suggests a period of expansion financed through increased borrowing up until mid-2017, accompanied by growth in assets. Subsequently, both debt and assets decreased, but leverage remained elevated. This pattern may reflect strategic financial restructuring, shifts in capital allocation, or changing operational conditions affecting the company's balance sheet composition.

The analysis of the quarterly financial data reveals several noteworthy trends in the company's asset base, equity position, and leverage over the observed periods.

Total Assets

Total assets exhibited fluctuations with an initial upward trend from approximately $40.5 billion to about $45.7 billion in the course of 2014 to mid-2015. Subsequently, there was a sharp decline in the second half of 2015, dropping below $18.4 billion. After this drop, assets showed a recovery trend into 2017, reaching a peak near $27.5 billion by mid-2017. The following quarters saw a gradual decline again, decreasing steadily to around $18.7 billion by late 2019.

Stockholders' Equity

Equity followed a somewhat parallel pattern to assets but with more pronounced decreases in certain periods. Starting from about $19.6 billion, equity diminished to approximately $19.8 billion by late 2014, then sharply declined in the latter half of 2015 to under $6.5 billion. A recovery phase ensued, with equity peaking at nearly $11.6 billion in mid-2017 before declining gradually again. By the end of the period in late 2019, equity had decreased substantially to just above $3.2 billion, indicating a significant reduction in shareholders' residual claim on assets.

Financial Leverage

Financial leverage showed a general increasing trend over the entire period, indicating a growing use of debt relative to equity. Initially, leverage ratios were around 2.0x to 2.3x in early periods but rose sharply during the asset and equity declines around 2015, peaking near 2.82. After a temporary reduction to near 2.1x-2.4x in 2016-2017, the company experienced a continuous increase in leverage from 2018 onwards. By late 2019, leverage escalated significantly to nearly 5.7x, more than doubling from initial levels, reflecting increased reliance on debt or decreased equity base.

In summary, the data indicates that after steady asset growth and maintained equity in the early periods, the company faced considerable contractions in both assets and equity around mid-2015. Although partial recoveries occurred, a downtrend prevailed towards the end of the period. The notably increasing financial leverage points to rising financial risk as the company depended more heavily on debt financing relative to equity over time.