Stock Analysis on Net
Stock Analysis on Net

eBay Inc. (NASDAQ:EBAY)

$22.49

This company has been moved to the archive! The financial data has not been updated since October 24, 2019.

Common-Size Income Statement

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eBay Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net revenues
Cost of net revenues
Gross profit
Sales and marketing
Product development
General and administrative
Provision for transaction losses
Amortization of acquired intangible assets
Operating expenses
Income from operations
Interest income
Interest expense
Gains on investments and sale of business
Other
Interest and other, net
Income from continuing operations before income taxes
Income tax (provision) benefit
Income (loss) from continuing operations
Income (loss) from discontinued operations, net of income taxes
Net income (loss)

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).

Gross Profit and Cost of Net Revenues
Gross profit as a percentage of net revenues showed a generally high level, starting at 67.98% in 2014 and increasing to a peak of 79.39% in 2015. Thereafter, it stabilized somewhat, fluctuating slightly and ending at 77.83% in 2018. Correspondingly, the cost of net revenues decreased sharply from -32.02% in 2014 to -20.61% in 2015, and then remained relatively stable, hovering around -22% through to 2018.
Operating Expenses
Operating expenses (combined sales and marketing, product development, general and administrative, provision for transaction losses, and amortization of intangibles) expressed as a percentage of net revenues increased from -48.35% in 2014 to -57.16% in 2018. Sales and marketing expenses rose significantly, particularly peaking at -31.56% in 2018. Product development costs remained relatively steady, fluctuating close to -11% to -13%. General and administrative expenses showed volatility but generally stayed near -10% to -13%. Provision for transaction losses decreased consistently, from -5.35% to around -2.66%, and amortization costs remained minimal and declining over time.
Income from Operations
Income from operations as a percentage of net revenues saw an upward trend from 19.63% in 2014, reaching a high of 25.89% in 2016, before declining to 20.68% in 2018. This pattern indicates moderate profitability with some fluctuations influenced by operational expenditure trends.
Interest Income and Expense
Interest income steadily increased from 0.74% in 2014 to a peak of 1.85% in 2017, before slightly declining to 1.64% in 2018. In contrast, interest expense steadily grew larger in magnitude from -0.69% to about -3.05% during the period, suggesting increased borrowing costs or debt levels.
Gains on Investments and Other Income
Gains on investments and sale of business contributed positively in some years, notably peaking at 14.96% in 2016 but generally fluctuating. Other income components were inconsistent, with notable positive spikes in 2016 and 2018 but generally minor overall impact.
Income from Continuing Operations Before Taxes
This metric exhibited significant fluctuations, peaking at 40.66% in 2016, then decreasing to 23.79% in 2017 and slightly increasing to 25.29% in 2018. Such variation indicates variability in operational efficiency or one-time income items around those years.
Income Tax Provision
Income tax as a percentage of net revenues showed extreme volatility, ranging from a significant negative impact of -19.47% in 2014 to a large positive benefit of 40.47% in 2016 and sharp negative swings in 2017. This variability may reflect tax adjustments, benefits, or liabilities causing substantial effects on net income.
Net Income Trends
Net income as a percentage of net revenues increased sharply from a negligible 0.26% in 2014 to a strong 80.92% in 2016. However, it declined drastically into negative territory in 2017 at -10.62%, followed by recovery to 23.54% in 2018. This indicates significant volatility in profitability, influenced likely by tax effects and volatile gains on investments or other non-operating income sources.