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.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

eBay Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Short-term debt 6.78 3.01 6.08 0.00 1.88
Accounts payable 1.25 1.27 1.19 1.96 0.89
Funds payable and amounts due to customers 0.00 0.00 0.00 0.00 23.36
Customer accounts and funds payable 2.98 2.42 2.20 2.65 0.00
Compensation and related benefits 1.80 1.81 1.80 2.52 1.73
Advertising accruals 1.16 0.91 0.77 0.76 0.00
Other current tax liabilities 1.00 0.00 0.00 0.00 0.00
Other 3.29 3.08 3.17 3.83 10.22
Accrued expenses and other current liabilities 10.23% 8.21% 7.94% 9.76% 11.95%
Deferred revenue 0.74 0.45 0.46 0.60 0.42
Income taxes payable 0.51 0.68 0.46 0.40 0.34
Current liabilities 19.52% 13.62% 16.13% 12.72% 38.84%
Deferred tax liabilities 12.82 13.18 7.92 11.76 1.75
Long-term debt 33.68 35.54 31.49 38.12 15.02
Other liabilities 6.46 6.62 0.27 0.42 0.28
Non-current liabilities 52.96% 55.34% 39.67% 50.30% 17.05%
Total liabilities 72.47% 68.97% 55.81% 63.03% 55.89%
Common stock, $0.001 par value 0.01 0.01 0.01 0.01 0.00
Additional paid-in capital 68.87 58.86 62.51 81.74 30.77
Treasury stock at cost -115.67 -84.26 -80.53 -91.10 -31.14
Retained earnings 72.13 53.67 62.73 43.37 41.88
Accumulated other comprehensive income (loss) 2.18 2.76 -0.52 2.96 2.59
Stockholders’ equity 27.53% 31.03% 44.19% 36.97% 44.11%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

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 composition of liabilities and stockholders’ equity exhibited significant shifts between 2014 and 2018. Overall, the proportion of total liabilities increased relative to stockholders’ equity over the period, indicating a growing reliance on debt financing. Several specific liability accounts demonstrated notable trends, while changes within stockholders’ equity also warrant attention.

Current Liabilities
Current liabilities as a percentage of the total decreased substantially from 38.84% in 2014 to a low of 12.72% in 2015, before gradually increasing to 19.52% in 2018. This initial decline was largely driven by a significant reduction in funds payable and amounts due to customers, which disappeared from the reporting after 2014. Accounts payable remained relatively stable, while accrued expenses and other current liabilities showed a moderate increase over the period. Short-term debt fluctuated, peaking in 2016 and 2018.
Non-Current Liabilities
Non-current liabilities demonstrated a marked increase from 17.05% in 2014 to 52.96% in 2018. This growth was primarily fueled by a substantial rise in long-term debt, which nearly doubled from 15.02% to 33.68% over the same period. Deferred tax liabilities also contributed to this increase, though to a lesser extent. Other liabilities experienced a significant increase in later years, particularly 2017 and 2018.
Total Liabilities
As a result of the trends in both current and non-current liabilities, total liabilities increased from 55.89% in 2014 to 72.47% in 2018. This represents a considerable shift in the company’s capital structure, with a greater proportion of its funding coming from liabilities rather than equity.
Stockholders’ Equity
Stockholders’ equity decreased from 44.11% in 2014 to 27.53% in 2018. This decline was primarily driven by significant changes in treasury stock, which became a much larger negative percentage of the total, increasing in magnitude from -31.14% to -115.67%. Retained earnings increased substantially over the period, but this increase was not sufficient to offset the impact of the growing treasury stock balance. Additional paid-in capital also showed an overall increase, though with some fluctuation. Common stock remained a negligible percentage of the total.
Specific Liability Accounts
The disappearance of “Funds payable and amounts due to customers” after 2014 suggests a change in business practices or reporting methodology. The increasing proportion of advertising accruals indicates potentially higher marketing expenditures. The emergence of “Other current tax liabilities” in 2018 suggests a new or specific tax obligation arose in that year.

In summary, the period from 2014 to 2018 witnessed a substantial increase in the company’s reliance on debt financing, coupled with a decrease in stockholders’ equity, largely attributable to treasury stock activity. These trends suggest a more leveraged capital structure and warrant further investigation into the underlying reasons for these changes.

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