Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
eBay Inc., liquidity ratios
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.60 | 2.19 | 2.31 | 3.49 | 1.51 | |
| Quick ratio | 1.26 | 1.85 | 2.01 | 2.98 | 1.43 | |
| Cash ratio | 1.10 | 1.66 | 1.86 | 2.71 | 0.58 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | eBay Inc. current ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | eBay Inc. quick ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | eBay Inc. cash ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Current Ratio
eBay Inc., current ratio 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) | |
| Current liabilities | 4,454) | 3,539) | 3,847) | 2,263) | 17,531) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.60 | 2.19 | 2.31 | 3.49 | 1.51 | |
| Benchmarks | ||||||
| Current Ratio, 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
Current ratio = Current assets ÷ Current liabilities
= 7,126 ÷ 4,454 = 1.60
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | eBay Inc. current ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Quick Ratio
eBay Inc., quick ratio 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) | ||||||
| Cash and cash equivalents | 2,202) | 2,120) | 1,816) | 1,832) | 6,328) | |
| Short-term investments | 2,713) | 3,743) | 5,333) | 4,299) | 3,770) | |
| Accounts receivable, net | 712) | 695) | 592) | 619) | 797) | |
| Loans and interest receivable, net | —) | —) | —) | —) | 3,600) | |
| Funds receivable and customer accounts | —) | —) | —) | —) | 10,545) | |
| Total quick assets | 5,627) | 6,558) | 7,741) | 6,750) | 25,040) | |
| Current liabilities | 4,454) | 3,539) | 3,847) | 2,263) | 17,531) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.26 | 1.85 | 2.01 | 2.98 | 1.43 | |
| Benchmarks | ||||||
| Quick Ratio, 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
Quick ratio = Total quick assets ÷ Current liabilities
= 5,627 ÷ 4,454 = 1.26
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | eBay Inc. quick ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Cash Ratio
eBay Inc., cash ratio 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) | ||||||
| Cash and cash equivalents | 2,202) | 2,120) | 1,816) | 1,832) | 6,328) | |
| Short-term investments | 2,713) | 3,743) | 5,333) | 4,299) | 3,770) | |
| Total cash assets | 4,915) | 5,863) | 7,149) | 6,131) | 10,098) | |
| Current liabilities | 4,454) | 3,539) | 3,847) | 2,263) | 17,531) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 1.10 | 1.66 | 1.86 | 2.71 | 0.58 | |
| Benchmarks | ||||||
| Cash Ratio, 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
Cash ratio = Total cash assets ÷ Current liabilities
= 4,915 ÷ 4,454 = 1.10
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | eBay Inc. cash ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |