Net Profit Margin
since 2005
Calculation
eBay Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Net revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2018 | 23.54% | = | 100 | × | 2,530) | ÷ | 10,746) |
| Dec 31, 2017 | -10.62% | = | 100 | × | (1,016) | ÷ | 9,567) |
| Dec 31, 2016 | 80.92% | = | 100 | × | 7,266) | ÷ | 8,979) |
| Dec 31, 2015 | 20.08% | = | 100 | × | 1,725) | ÷ | 8,592) |
| Dec 31, 2014 | 0.26% | = | 100 | × | 46) | ÷ | 17,902) |
| Dec 31, 2013 | 17.80% | = | 100 | × | 2,856) | ÷ | 16,047) |
| Dec 31, 2012 | 18.54% | = | 100 | × | 2,609) | ÷ | 14,072) |
| Dec 31, 2011 | 27.72% | = | 100 | × | 3,229) | ÷ | 11,652) |
| Dec 31, 2010 | 19.67% | = | 100 | × | 1,801) | ÷ | 9,156) |
| Dec 31, 2009 | 27.37% | = | 100 | × | 2,389) | ÷ | 8,727) |
| Dec 31, 2008 | 20.83% | = | 100 | × | 1,779) | ÷ | 8,541) |
| Dec 31, 2007 | 4.54% | = | 100 | × | 348) | ÷ | 7,672) |
| Dec 31, 2006 | 18.86% | = | 100 | × | 1,126) | ÷ | 5,970) |
| Dec 31, 2005 | 23.77% | = | 100 | × | 1,082) | ÷ | 4,552) |
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 financial performance from 2005 to 2018 is characterized by significant volatility in net profit margins, with the ratio experiencing extreme fluctuations that do not consistently correlate with net revenue growth.
- Early Margin Trends (2005–2011)
- A period of instability is observed initially, where the net profit margin declined from 23.77% in 2005 to a low of 4.54% in 2007, despite a steady increase in net revenues. A recovery followed, with margins returning to a range between 19% and 27%, peaking at 27.72% in 2011. This suggests a period of operational adjustment followed by a phase of improved efficiency.
- Margin Erosion and Revenue Divergence (2012–2014)
- Between 2012 and 2014, a marked divergence occurred between revenue and profitability. While net revenues reached a historical peak of 17.9 billion USD in 2014, the net profit margin collapsed to 0.26%. This indicates that the costs associated with generating increased revenue during this period nearly eliminated net income.
- Structural Volatility and Anomalies (2015–2018)
- The final period is defined by extreme variance. A sharp reduction in net revenues occurred in 2015, accompanied by a stabilization of the margin at 20.08%. In 2016, an extraordinary spike in net profit margin to 80.92% was recorded, resulting from a surge in net income to 7.26 billion USD despite modest revenues. This anomaly was followed by a transition into negative territory in 2017, with a net profit margin of -10.62%, before returning to a normalized level of 23.54% in 2018.
In summary, the data reveals a lack of linear stability in profitability. The most notable insight is the occurrence of non-operational impacts or structural changes between 2015 and 2017, where net income decoupled entirely from revenue trends, leading to both the highest and lowest margin points in the analyzed timeframe.
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Comparison to Competitors
eBay Inc., net profit margin, long-term trends, comparison to competitors
| eBay Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2018 | 23.54% | 4.33% | 8.55% | 5.02% | 7.27% |
| Dec 31, 2017 | -10.62% | 1.71% | 8.41% | 4.76% | 6.93% |
| Dec 31, 2016 | 80.92% | 1.74% | 7.92% | 4.31% | 7.36% |
| Dec 31, 2015 | 20.08% | 0.56% | 7.63% | 4.80% | 7.62% |
| Dec 31, 2014 | 0.26% | -0.27% | 6.83% | 4.28% | 7.79% |
| Dec 31, 2013 | 17.80% | 0.37% | 6.07% | 3.88% | 7.37% |
| Dec 31, 2012 | 18.54% | -0.06% | 5.52% | 3.66% | 6.45% |
| Dec 31, 2011 | 27.72% | 1.31% | 4.91% | 4.12% | 6.12% |
| Dec 31, 2010 | 19.67% | 3.37% | 4.02% | 3.78% | 5.98% |
| Dec 31, 2009 | 27.37% | 3.68% | 3.17% | 4.55% | 4.63% |
| Dec 31, 2008 | 20.83% | 3.37% | 5.68% | 5.82% | 4.14% |
| Dec 31, 2007 | 4.54% | 3.21% | 6.34% | 6.62% | 4.24% |
| Dec 31, 2006 | 18.86% | 1.77% | 7.16% | 6.41% | 4.30% |
| Dec 31, 2005 | 23.77% | 4.23% | 6.84% | 5.97% | 4.45% |
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., net profit margin, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| eBay Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Dec 31, 2018 | 23.54% | 5.65% |
| Dec 31, 2017 | -10.62% | 4.42% |
| Dec 31, 2016 | 80.92% | 4.52% |
| Dec 31, 2015 | 20.08% | 4.30% |
| Dec 31, 2014 | 0.26% | 3.85% |
| Dec 31, 2013 | 17.80% | 3.85% |
| Dec 31, 2012 | 18.54% | 3.50% |
| Dec 31, 2011 | 27.72% | 3.92% |
| Dec 31, 2010 | 19.67% | 4.06% |
| Dec 31, 2009 | 27.37% | 3.83% |
| Dec 31, 2008 | 20.83% | 5.27% |
| Dec 31, 2007 | 4.54% | 5.93% |
| Dec 31, 2006 | 18.86% | 6.26% |
| Dec 31, 2005 | 23.77% | 6.17% |
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., net profit margin, long-term trends, comparison to industry (consumer discretionary)
| eBay Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2018 | 23.54% | 6.19% |
| Dec 31, 2017 | -10.62% | 4.38% |
| Dec 31, 2016 | 80.92% | 5.77% |
| Dec 31, 2015 | 20.08% | 6.37% |
| Dec 31, 2014 | 0.26% | 4.66% |
| Dec 31, 2013 | 17.80% | 5.29% |
| Dec 31, 2012 | 18.54% | 5.32% |
| Dec 31, 2011 | 27.72% | 8.80% |
| Dec 31, 2010 | 19.67% | 5.80% |
| Dec 31, 2009 | 27.37% | 4.94% |
| Dec 31, 2008 | 20.83% | 0.22% |
| Dec 31, 2007 | 4.54% | 3.23% |
| Dec 31, 2006 | 18.86% | 0.73% |
| Dec 31, 2005 | 23.77% | 4.49% |
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).