Name: eBay Inc. (NASDAQ:EBAY) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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eBay Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net income (loss)	2,530)	(1,016)	7,266)	1,725)	46)
(Income) loss from discontinued operations, net of income taxes	(2)	4)	19)	222)	—)
Provision for transaction losses	286)	272)	231)	271)	958)
Depreciation and amortization	696)	676)	682)	687)	1,490)
Stock-based compensation	538)	483)	416)	379)	675)
(Gain) loss on investments, net	(572)	49)	(1,236)	(195)	—)
Gain on sale of business	—)	(167)	—)	—)	—)
Deferred income taxes	(153)	1,729)	(4,556)	(32)	2,808)
Change in fair value of warrant	(104)	—)	—)	—)	—)
Other	19)	—)	(15)	(74)	(115)
Accounts receivable	(98)	(195)	(48)	(105)	16)
Other current assets	(143)	(148)	23)	(143)	(183)
Other non-current assets	108)	19)	94)	143)	14)
Accounts payable	(47)	19)	(28)	226)	87)
Accrued expenses and other liabilities	(437)	206)	(130)	(202)	(347)
Deferred revenue	33)	6)	4)	9)	30)
Income taxes payable and other tax liabilities	7)	1,209)	105)	(34)	198)
Changes in assets and liabilities, net of acquisition effects	(577)	1,116)	20)	(106)	(185)
Adjustments	133)	4,158)	(4,458)	930)	5,631)
Net cash provided by operating activities	2,661)	3,146)	2,827)	2,877)	5,677)
Purchases of property and equipment	(651)	(666)	(626)	(668)	(1,271)
Purchases of investments	(28,115)	(14,599)	(11,212)	(6,744)	(8,834)
Maturities and sales of investments	30,901)	14,520)	10,063)	6,781)	8,524)
Equity investment in Flipkart	—)	(514)	—)	—)	—)
Proceeds from sale of equity investment in Flipkart	1,029)	—)	—)	—)	—)
Acquisitions, net of cash acquired	(302)	(34)	(212)	(24)	(59)
Changes in principal loans receivable, net	—)	—)	—)	—)	(1,020)
Other	32)	(3)	(21)	(18)	(13)
Net cash (used in) provided by investing activities	2,894)	(1,296)	(2,008)	(673)	(2,673)
Proceeds from issuance of common stock	109)	120)	102)	221)	300)
Repurchases of common stock	(4,502)	(2,746)	(2,943)	(2,149)	(4,658)
Tax withholdings related to net share settlements of restricted stock awards and units	(225)	(219)	(121)	(245)	(252)
Proceeds from issuance of long-term debt, net	—)	2,484)	2,216)	—)	3,482)
Repayment of debt	(750)	(1,452)	(20)	(850)	—)
Funds receivable and customer accounts, net	—)	—)	—)	—)	(1,285)
Funds payable and amounts due to customers, net	—)	—)	—)	—)	1,285)
Other	(30)	29)	22)	63)	106)
Net cash used in financing activities	(5,398)	(1,784)	(744)	(2,960)	(1,022)
Net cash provided by (used in) discontinued operating activities	(3)	—)	(1)	1,156)	—)
Net cash used in discontinued investing activities	—)	—)	—)	(2,938)	—)
Net cash used in discontinued financing activities	—)	—)	—)	(1,594)	—)
Net cash used in discontinued activities	(3)	—)	(1)	(3,376)	—)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(75)	238)	(90)	(364)	(148)
Net increase (decrease) in cash, cash equivalents and restricted cash	79)	304)	(16)	(4,496)	1,834)
Cash, cash equivalents and restricted cash at beginning of period	2,140)	1,816)	1,832)	6,328)	4,494)
Cash, cash equivalents and restricted cash at end of period	2,219)	2,120)	1,816)	1,832)	6,328)

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).

Operating cash flow demonstrated a general decline from a peak of 5,677 million US dollars in 2014, subsequently stabilizing between 2,661 million and 3,146 million US dollars from 2015 through 2018. While net income exhibited significant volatility—including a peak of 7,266 million US dollars in 2016 and a deficit of 1,016 million US dollars in 2017—the net cash provided by operating activities remained relatively consistent. This divergence is largely attributable to substantial non-cash adjustments, particularly deferred income taxes, which fluctuated significantly across the period.

Operating Activity Drivers: The stability in operating cash flows despite erratic net income is supported by consistent non-cash charges. Depreciation and amortization remained steady between 676 million and 696 million US dollars from 2015 to 2018. Stock-based compensation showed a gradual upward trend, increasing from 379 million US dollars in 2015 to 538 million US dollars in 2018, contributing positively to cash flow from operations.
Investing Activity Patterns: Net cash used in investing activities was negative for most of the period, shifting to a net inflow of 2,894 million US dollars in 2018. Capital expenditures for property and equipment remained consistent, averaging approximately 650 million US dollars annually from 2015 to 2018. High-volume turnover in investments is evident, with purchases and maturities often offsetting each other. Notably, 2018 saw a significant cash infusion from the sale of equity investments in Flipkart, totaling 1,029 million US dollars, following an initial investment of 514 million US dollars in 2017.
Financing Activity Trends: Financing activities resulted in net cash outflows throughout the five-year period, with the most significant outflow occurring in 2018 at 5,398 million US dollars. The primary driver of these outflows was the aggressive repurchase of common stock, which totaled 4,502 million US dollars in 2018 and 4,658 million US dollars in 2014. These buybacks were partially offset by the issuance of long-term debt in 2014, 2016, and 2017, though no new long-term debt was issued in 2018.
Liquidity and Cash Position: The overall cash, cash equivalents, and restricted cash position decreased over the analyzed period, falling from 6,328 million US dollars at the end of 2014 to 2,219 million US dollars by the end of 2018. The reduction in liquidity is primarily linked to the substantial capital returned to shareholders through stock repurchases, which consistently exceeded the cash generated from financing and investing activities in most years.

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