Analysis of Debt
Total Debt (Carrying Amount)
eBay Inc., balance sheet: debt
US$ in millions
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).
The total carrying amount of debt exhibited a non-linear trajectory between 2014 and 2018, characterized by a period of expansion followed by a partial contraction. Total obligations decreased slightly from US$ 7,627 million in 2014 to US$ 6,779 million in 2015, before entering a growth phase that peaked at US$ 10,015 million in 2017. By the end of 2018, the total debt carrying amount declined to US$ 9,231 million.
- Long-term Debt Dynamics
- Long-term debt acted as the primary driver of the total debt balance. After remaining stable between 2014 and 2015 at approximately US$ 6,777 million, long-term liabilities increased progressively over the next two years, reaching a maximum of US$ 9,234 million in 2017. A significant reduction occurred in 2018, with the balance falling to US$ 7,685 million, indicating a substantial repayment or restructuring of long-term obligations.
- Short-term Debt Volatility
- Short-term debt displayed considerable volatility throughout the reporting period. Following a period of missing data in 2015, balances rose to US$ 1,451 million in 2016, dropped to US$ 781 million in 2017, and then increased sharply to a five-year peak of US$ 1,546 million in 2018. These fluctuations suggest inconsistent reliance on short-term credit facilities or changes in liquidity management strategies.
- Debt Composition and Maturity Profile
- The overall debt structure remained heavily skewed toward long-term obligations for the majority of the period. However, 2018 marked a notable shift in the maturity profile; while long-term debt was reduced, short-term debt increased to its highest level in the provided timeframe. This inverse movement suggests a shift in the timing of debt settlements or a strategic move toward shorter-term financing during the final year of the analysis.
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Total Debt (Fair Value)
| Dec 31, 2018 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Senior notes | 9,000) |
| Other indebtedness, long-term | —) |
| Other indebtedness, short-term | 4) |
| Total debt (fair value) | 9,004) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.98 |
Based on: 10-K (reporting date: 2018-12-31).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt: 3.45%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.12% | 400) | 12) | |
| 3.50% | 400) | 14) | |
| 2.35% | 1,150) | 27) | |
| 3.39% | 500) | 17) | |
| 2.34% | 500) | 12) | |
| 2.99% | 750) | 22) | |
| 3.99% | 750) | 30) | |
| 2.68% | 1,000) | 27) | |
| 2.87% | 750) | 21) | |
| 3.53% | 750) | 26) | |
| 3.69% | 850) | 31) | |
| 4.11% | 750) | 31) | |
| 6.55% | 750) | 49) | |
| Total | 9,300) | 321) | |
| 3.45% | |||
Based on: 10-K (reporting date: 2018-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 321 ÷ 9,300 = 3.45%