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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- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
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eBay Inc., consolidated cash flow statement
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).
- Net Income (Loss)
- The net income exhibits significant variability over the five-year period, with a notable peak in 2016 at $7,266 million, followed by a steep decline into a loss of $1,016 million in 2017, before recovering moderately to $2,530 million in 2018. This suggests volatility in earnings performance during the period.
- Provision for Transaction Losses
- This expense remains relatively stable from 2014 to 2018, fluctuating modestly between $231 million and $958 million, with no clear trend of increase or decrease.
- Depreciation and Amortization
- Depreciation and amortization expense decreases sharply from $1,490 million in 2014 to around $676 million to $696 million in subsequent years, indicating a possible reduction in capital assets or change in amortization policies.
- Stock-Based Compensation
- The stock-based compensation expense trends upwards from $675 million in 2014 to $538 million in 2018, after a dip in 2015, indicating an overall increase in non-cash employee compensation costs.
- Investment Gains and Related Items
- Net gain (loss) on investments is volatile, with large negative impacts in 2015 (-$195 million), 2016 (-$1,236 million), followed by positive and then negative swings in later years. The gain on sale of business appears only in 2017 at -$167 million, which may be related to disposal activities. Deferred income taxes show substantial fluctuations, suggesting tax strategy changes or timing differences.
- Operating Assets and Liabilities
- Changes in accounts receivable and other current assets generally indicate negative adjustments, while accounts payable and accrued expenses display mixed and inconsistent changes year-over-year. Deferred revenue remains low and relatively steady, whereas income taxes payable rose sharply in 2017 before normalizing.
- Operating Cash Flow
- Net cash from operating activities shows a declining trend from $5,677 million in 2014 to $2,661 million in 2018, with some fluctuations. This suggests decreasing operational cash generation efficiency over the period.
- Investing Activities
- Purchases of property and equipment remain consistent and moderate. However, purchases of investments escalate significantly, especially by 2018, reaching -$28,115 million, with correspondingly large maturities and sales of investments increasing to $30,901 million. The net cash provided or used in investing activities shows a reversal in 2018 from net outflows to significant inflows, likely driven by investment sales.
- Financing Activities
- Proceeds from issuance of common stock decline gradually, while repurchases of common stock are substantial and increasing, peaking at -$4,502 million in 2018, indicating aggressive share buyback programs. Debt issuance and repayment activities are sporadic but notable in certain years. Overall, net cash used in financing activities grows markedly negative in 2018, reflecting heightened capital returns and debt repayments.
- Discontinued Operations and Activities
- Discontinued operations impact is minor but includes sporadic cash flows and income/loss items. Net cash used in discontinued activities is significant in 2015, indicating divestment or termination of business segments during that year.
- Cash Position
- Cash and cash equivalents fluctuate broadly, rising strongly in 2014, declining sharply in 2015, and remaining relatively stable through 2018. The net increase in cash is inconsistent, suggesting variable liquidity management and cash flow volatility.
- Overall Assessment
- The financial data reveals volatile profitability, aggressive investment and divestment activity, and substantial share repurchases. Operating cash flow appears to be under pressure toward the end of the period, while investing and financing activities reflect dynamic strategic moves. The company's cash balance remains relatively stable despite the high fluctuations in its cash-generating and financing activities.