Current Ratio
since 2005
Calculation
eBay Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2018 | 1.60 | = | 7,126) | ÷ | 4,454) |
| Dec 31, 2017 | 2.19 | = | 7,743) | ÷ | 3,539) |
| Dec 31, 2016 | 2.31 | = | 8,875) | ÷ | 3,847) |
| Dec 31, 2015 | 3.49 | = | 7,904) | ÷ | 2,263) |
| Dec 31, 2014 | 1.51 | = | 26,531) | ÷ | 17,531) |
| Dec 31, 2013 | 1.84 | = | 23,283) | ÷ | 12,639) |
| Dec 31, 2012 | 1.96 | = | 21,398) | ÷ | 10,924) |
| Dec 31, 2011 | 1.88 | = | 12,661) | ÷ | 6,734) |
| Dec 31, 2010 | 2.45 | = | 11,065) | ÷ | 4,517) |
| Dec 31, 2009 | 2.32 | = | 8,460) | ÷ | 3,642) |
| Dec 31, 2008 | 1.70 | = | 6,287) | ÷ | 3,705) |
| Dec 31, 2007 | 2.30 | = | 7,123) | ÷ | 3,100) |
| Dec 31, 2006 | 1.97 | = | 4,971) | ÷ | 2,518) |
| Dec 31, 2005 | 2.14 | = | 3,183) | ÷ | 1,485) |
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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The liquidity profile of the organization from 2005 to 2018 is characterized by two distinct operational phases, separated by a significant structural shift in 2015. Throughout the entire period, the current ratio remained above 1.50, indicating a consistent ability to cover short-term obligations with current assets.
- Expansion Phase (2005–2014)
- During this period, both current assets and current liabilities experienced substantial growth. Current assets increased from 3,183 million US$ in 2005 to a peak of 26,531 million US$ in 2014. Current liabilities followed a similar upward trajectory, rising from 1,485 million US$ to 17,531 million US$. Despite this growth in scale, the current ratio fluctuated within a range of 1.51 to 2.45, suggesting a managed balance between short-term resource accumulation and obligation growth.
- Structural Reconfiguration (2015)
- A sharp contraction in the balance sheet occurred in 2015, with current assets dropping to 7,904 million US$ and current liabilities falling to 2,263 million US$. This simultaneous reduction resulted in the highest recorded liquidity peak in the analyzed period, with the current ratio spiking to 3.49. This suggests a significant divestiture or accounting restructuring that disproportionately reduced short-term liabilities compared to short-term assets.
- Stabilization and Recent Trend (2016–2018)
- Following the 2015 peak, a downward trend in the current ratio is observed, moving from 2.31 in 2016 to 1.60 by December 31, 2018. This decline is primarily driven by a steady increase in current liabilities, which grew from 2,263 million US$ in 2015 to 4,454 million US$ in 2018, while current assets remained relatively stagnant, ending the period at 7,126 million US$.
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Comparison to Competitors
eBay Inc., current ratio, long-term trends, comparison to competitors
| eBay Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2018 | 1.60 | 1.10 | 1.17 | 1.06 | 1.66 |
| Dec 31, 2017 | 2.19 | 1.04 | 1.25 | 1.00 | 1.63 |
| Dec 31, 2016 | 2.31 | 1.04 | 1.36 | 1.01 | 1.54 |
| Dec 31, 2015 | 3.49 | 1.08 | 1.36 | 1.08 | 1.71 |
| Dec 31, 2014 | 1.51 | 1.12 | 1.42 | 1.16 | 1.72 |
| Dec 31, 2013 | 1.84 | 1.07 | 1.34 | 1.27 | 1.52 |
| Dec 31, 2012 | 1.96 | 1.12 | 1.55 | 1.28 | 1.68 |
| Dec 31, 2011 | 1.88 | 1.17 | 1.33 | 1.40 | 1.63 |
| Dec 31, 2010 | 2.45 | 1.33 | 1.34 | 1.32 | 1.66 |
| Dec 31, 2009 | 2.32 | 1.33 | 1.20 | 1.15 | 1.31 |
| Dec 31, 2008 | 1.70 | 1.30 | 1.15 | 1.12 | 1.45 |
| Dec 31, 2007 | 2.30 | 1.39 | 1.39 | 1.27 | 1.57 |
| Dec 31, 2006 | 1.97 | 1.33 | 1.19 | 1.34 | 1.39 |
| Dec 31, 2005 | 2.14 | 1.52 | 1.35 | 1.22 | 1.32 |
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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
eBay Inc., current ratio, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| eBay Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Dec 31, 2018 | 1.60 | 1.13 |
| Dec 31, 2017 | 2.19 | 1.10 |
| Dec 31, 2016 | 2.31 | 1.12 |
| Dec 31, 2015 | 3.49 | 1.17 |
| Dec 31, 2014 | 1.51 | 1.23 |
| Dec 31, 2013 | 1.84 | 1.21 |
| Dec 31, 2012 | 1.96 | 1.30 |
| Dec 31, 2011 | 1.88 | 1.31 |
| Dec 31, 2010 | 2.45 | 1.36 |
| Dec 31, 2009 | 2.32 | 1.23 |
| Dec 31, 2008 | 1.70 | 1.20 |
| Dec 31, 2007 | 2.30 | 1.38 |
| Dec 31, 2006 | 1.97 | 1.26 |
| Dec 31, 2005 | 2.14 | 1.32 |
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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Discretionary)
eBay Inc., current ratio, long-term trends, comparison to industry (consumer discretionary)
| eBay Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2018 | 1.60 | 1.15 |
| Dec 31, 2017 | 2.19 | 1.15 |
| Dec 31, 2016 | 2.31 | 1.12 |
| Dec 31, 2015 | 3.49 | 1.25 |
| Dec 31, 2014 | 1.51 | 1.11 |
| Dec 31, 2013 | 1.84 | 1.15 |
| Dec 31, 2012 | 1.96 | 1.14 |
| Dec 31, 2011 | 1.88 | 1.31 |
| Dec 31, 2010 | 2.45 | 1.24 |
| Dec 31, 2009 | 2.32 | 1.25 |
| Dec 31, 2008 | 1.70 | 0.96 |
| Dec 31, 2007 | 2.30 | 1.21 |
| Dec 31, 2006 | 1.97 | 1.15 |
| Dec 31, 2005 | 2.14 | 1.10 |
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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).