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 Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

eBay Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Customer lists and user base 519 458 434 419 1,641
Marketing-related 584 607 568 594 849
Developed technologies 278 273 263 238 579
All other 160 156 154 157 279
Intangible assets, gross carrying amount 1,541 1,494 1,419 1,408 3,348
Accumulated amortization (1,449) (1,425) (1,317) (1,318) (2,784)
Intangible assets, net carrying amount 92 69 102 90 564
Goodwill 5,160 4,773 4,501 4,451 9,094
Goodwill and intangible assets 5,252 4,842 4,603 4,541 9,658

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).

Item Description The company
Intangible assets, net carrying amount Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. eBay Inc. intangible assets, net carrying amount decreased from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. eBay Inc. goodwill increased from 2016 to 2017 and from 2017 to 2018.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. eBay Inc. goodwill and intangible assets increased from 2016 to 2017 and from 2017 to 2018.

Adjustments to Financial Statements: Removal of Goodwill

eBay Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Adjustment to Total Assets
Total assets (as reported) 22,819 25,981 23,847 17,785 45,132
Less: Goodwill 5,160 4,773 4,501 4,451 9,094
Total assets (adjusted) 17,659 21,208 19,346 13,334 36,038
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 6,281 8,063 10,539 6,576 19,906
Less: Goodwill 5,160 4,773 4,501 4,451 9,094
Stockholders’ equity (adjusted) 1,121 3,290 6,038 2,125 10,812

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).

eBay Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

eBay Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Total Asset Turnover
Reported total asset turnover 0.47 0.37 0.38 0.48 0.40
Adjusted total asset turnover 0.61 0.45 0.46 0.64 0.50
Financial Leverage
Reported financial leverage 3.63 3.22 2.26 2.70 2.27
Adjusted financial leverage 15.75 6.45 3.20 6.27 3.33
Return on Equity (ROE)
Reported ROE 40.28% -12.60% 68.94% 26.23% 0.23%
Adjusted ROE 225.69% -30.88% 120.34% 81.18% 0.43%
Return on Assets (ROA)
Reported ROA 11.09% -3.91% 30.47% 9.70% 0.10%
Adjusted ROA 14.33% -4.79% 37.56% 12.94% 0.13%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. eBay Inc. adjusted total asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 eBay Inc. adjusted financial leverage ratio increased from 2016 to 2017 and from 2017 to 2018.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. eBay Inc. adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. eBay Inc. adjusted ROA deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

eBay Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

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 revenues 10,746 9,567 8,979 8,592 17,902
Total assets 22,819 25,981 23,847 17,785 45,132
Activity Ratio
Total asset turnover1 0.47 0.37 0.38 0.48 0.40
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net revenues 10,746 9,567 8,979 8,592 17,902
Adjusted total assets 17,659 21,208 19,346 13,334 36,038
Activity Ratio
Adjusted total asset turnover2 0.61 0.45 0.46 0.64 0.50

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 Total asset turnover = Net revenues ÷ Total assets
= 10,746 ÷ 22,819 = 0.47

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 10,746 ÷ 17,659 = 0.61

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. eBay Inc. adjusted total asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Financial Leverage

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)
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
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 17,659 21,208 19,346 13,334 36,038
Adjusted stockholders’ equity 1,121 3,290 6,038 2,125 10,812
Solvency Ratio
Adjusted financial leverage2 15.75 6.45 3.20 6.27 3.33

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 Financial leverage = Total assets ÷ Stockholders’ equity
= 22,819 ÷ 6,281 = 3.63

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 17,659 ÷ 1,121 = 15.75

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 eBay Inc. adjusted financial leverage ratio increased from 2016 to 2017 and 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 for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) 2,530 (1,016) 7,266 1,725 46
Adjusted stockholders’ equity 1,121 3,290 6,038 2,125 10,812
Profitability Ratio
Adjusted ROE2 225.69% -30.88% 120.34% 81.18% 0.43%

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 × Net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 2,530 ÷ 1,121 = 225.69%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. eBay Inc. adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 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 for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) 2,530 (1,016) 7,266 1,725 46
Adjusted total assets 17,659 21,208 19,346 13,334 36,038
Profitability Ratio
Adjusted ROA2 14.33% -4.79% 37.56% 12.94% 0.13%

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 × Net income (loss) ÷ Adjusted total assets
= 100 × 2,530 ÷ 17,659 = 14.33%

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