Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
eBay Inc., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | eBay Inc. receivables turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | eBay Inc. payables turnover ratio decreased from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | eBay Inc. working capital turnover ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | eBay Inc. number of days of payables outstanding increased from 2016 to 2017 but then decreased significantly from 2017 to 2018. |
Receivables Turnover
eBay Inc., receivables turnover 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 revenues | 10,746) | 9,567) | 8,979) | 8,592) | 17,902) | |
| Accounts receivable, net | 712) | 695) | 592) | 619) | 797) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 15.09 | 13.77 | 15.17 | 13.88 | 22.46 | |
| Benchmarks | ||||||
| Receivables Turnover, 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
Receivables turnover = Net revenues ÷ Accounts receivable, net
= 10,746 ÷ 712 = 15.09
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | eBay Inc. receivables turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
Payables Turnover
eBay Inc., payables turnover 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) | ||||||
| Cost of net revenues | 2,382) | 2,222) | 2,007) | 1,771) | 5,732) | |
| Accounts payable | 286) | 330) | 283) | 349) | 401) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 8.33 | 6.73 | 7.09 | 5.07 | 14.29 | |
| Benchmarks | ||||||
| Payables Turnover, 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
Payables turnover = Cost of net revenues ÷ Accounts payable
= 2,382 ÷ 286 = 8.33
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | eBay Inc. payables turnover ratio decreased from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level. |
Working Capital Turnover
eBay Inc., working capital turnover 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) | ||||||
| Current assets | 7,126) | 7,743) | 8,875) | 7,904) | 26,531) | |
| Less: Current liabilities | 4,454) | 3,539) | 3,847) | 2,263) | 17,531) | |
| Working capital | 2,672) | 4,204) | 5,028) | 5,641) | 9,000) | |
| Net revenues | 10,746) | 9,567) | 8,979) | 8,592) | 17,902) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 4.02 | 2.28 | 1.79 | 1.52 | 1.99 | |
| Benchmarks | ||||||
| Working Capital Turnover, 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
Working capital turnover = Net revenues ÷ Working capital
= 10,746 ÷ 2,672 = 4.02
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | eBay Inc. working capital turnover ratio improved from 2016 to 2017 and from 2017 to 2018. |
Average Receivable Collection Period
eBay Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 15.09 | 13.77 | 15.17 | 13.88 | 22.46 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 24 | 27 | 24 | 26 | 16 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, 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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 15.09 = 24
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Average Payables Payment Period
eBay Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 8.33 | 6.73 | 7.09 | 5.07 | 14.29 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 44 | 54 | 51 | 72 | 26 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, 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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.33 = 44
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | eBay Inc. number of days of payables outstanding increased from 2016 to 2017 but then decreased significantly from 2017 to 2018. |