Return on Equity (ROE)
since 2005
Calculation
eBay Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2018 | 40.28% | = | 100 | × | 2,530) | ÷ | 6,281) |
| Dec 31, 2017 | -12.60% | = | 100 | × | (1,016) | ÷ | 8,063) |
| Dec 31, 2016 | 68.94% | = | 100 | × | 7,266) | ÷ | 10,539) |
| Dec 31, 2015 | 26.23% | = | 100 | × | 1,725) | ÷ | 6,576) |
| Dec 31, 2014 | 0.23% | = | 100 | × | 46) | ÷ | 19,906) |
| Dec 31, 2013 | 12.08% | = | 100 | × | 2,856) | ÷ | 23,647) |
| Dec 31, 2012 | 12.50% | = | 100 | × | 2,609) | ÷ | 20,865) |
| Dec 31, 2011 | 18.01% | = | 100 | × | 3,229) | ÷ | 17,930) |
| Dec 31, 2010 | 11.77% | = | 100 | × | 1,801) | ÷ | 15,302) |
| Dec 31, 2009 | 17.33% | = | 100 | × | 2,389) | ÷ | 13,788) |
| Dec 31, 2008 | 16.05% | = | 100 | × | 1,779) | ÷ | 11,084) |
| Dec 31, 2007 | 2.98% | = | 100 | × | 348) | ÷ | 11,705) |
| Dec 31, 2006 | 10.32% | = | 100 | × | 1,126) | ÷ | 10,905) |
| Dec 31, 2005 | 10.77% | = | 100 | × | 1,082) | ÷ | 10,048) |
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
- Net Income (Loss) Trends
- The net income demonstrated considerable fluctuation over the period. Initially, from 2005 to 2007, net income showed a decline, reaching a notable low in 2007. However, this was followed by a strong upward trend peaking in 2011. Subsequent years exhibited volatility, marked by a significant dip in 2014, a robust recovery in 2016, and an extraordinary peak in 2017, driven by a notably high net income value. A sharp loss occurred in 2018, which rebounded partially by the end of the period.
- Stockholders' Equity Progression
- Stockholders’ equity generally increased from 2005 to 2013, peaking in 2013 with a consistent year-over-year upward trend. From 2014 onwards, there was a notable decline, with equity dropping sharply in 2015. Although there was some recovery in the following years, equity remained well below earlier highs by 2018, indicating possible capital withdrawals, losses, or other factors affecting the equity base.
- Return on Equity (ROE) Patterns
- The return on equity presented high variability across the years. Initially stable but low in the early years, ROE experienced significant peaks, particularly in 2011 and 2016, suggesting periods of high efficiency in generating profit from equity. The 2017 figure was negative, reflecting the net loss reported, while 2018 saw a substantial rebound. The wide swings in ROE align closely with the trends observed in net income and equity changes.
- Overall Financial Insights
- The data reveals a company undergoing phases of strong profitability interspersed with volatility. The sharp fluctuations in net income and ROE, alongside declines in equity after 2013, may suggest exposure to operational or market risks during this period. The pronounced loss in 2017 is notable and impacts the financial ratios significantly. The variability in these metrics indicates the importance of further qualitative analysis to understand underlying causes, such as market conditions, restructuring, or investment activities.
Comparison to Competitors
eBay Inc., ROE, long-term trends, comparison to competitors
| eBay Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2018 | 40.28% | 23.13% | 593.54% | 58.69% | 50.66% |
| Dec 31, 2017 | -12.60% | 10.95% | 183.64% | 48.07% | 50.95% |
| Dec 31, 2016 | 68.94% | 12.29% | 110.97% | 33.26% | 52.88% |
| Dec 31, 2015 | 26.23% | 4.45% | 68.06% | 27.07% | 51.95% |
| Dec 31, 2014 | 0.23% | -2.24% | 43.00% | 19.29% | 50.53% |
| Dec 31, 2013 | 12.08% | 2.81% | 25.51% | 14.14% | 52.01% |
| Dec 31, 2012 | 12.50% | -0.48% | 21.70% | 11.12% | 46.62% |
| Dec 31, 2011 | 18.01% | 8.13% | 17.67% | 11.10% | 43.33% |
| Dec 31, 2010 | 11.77% | 16.78% | 13.72% | 9.35% | 42.00% |
| Dec 31, 2009 | 17.33% | 17.16% | 12.71% | 12.16% | 41.26% |
| Dec 31, 2008 | 16.05% | 24.14% | 24.81% | 17.45% | 36.21% |
| Dec 31, 2007 | 2.98% | 39.77% | 23.02% | 19.75% | 32.23% |
| Dec 31, 2006 | 10.32% | 44.08% | 21.70% | 19.32% | 36.48% |
| Dec 31, 2005 | 10.77% | 145.93% | 20.70% | 18.86% | 40.17% |
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 Sector (Consumer Discretionary Distribution & Retail)
eBay Inc., ROE, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| eBay Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Dec 31, 2018 | 40.28% | 44.19% |
| Dec 31, 2017 | -12.60% | 38.11% |
| Dec 31, 2016 | 68.94% | 37.81% |
| Dec 31, 2015 | 26.23% | 32.09% |
| Dec 31, 2014 | 0.23% | 24.32% |
| Dec 31, 2013 | 12.08% | 19.26% |
| Dec 31, 2012 | 12.50% | 15.66% |
| Dec 31, 2011 | 18.01% | 15.30% |
| Dec 31, 2010 | 11.77% | 14.12% |
| Dec 31, 2009 | 17.33% | 14.43% |
| Dec 31, 2008 | 16.05% | 22.32% |
| Dec 31, 2007 | 2.98% | 22.78% |
| Dec 31, 2006 | 10.32% | 21.78% |
| Dec 31, 2005 | 10.77% | 21.81% |
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., ROE, long-term trends, comparison to industry (consumer discretionary)
| eBay Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2018 | 40.28% | 34.33% |
| Dec 31, 2017 | -12.60% | 22.85% |
| Dec 31, 2016 | 68.94% | 28.74% |
| Dec 31, 2015 | 26.23% | 29.03% |
| Dec 31, 2014 | 0.23% | 20.60% |
| Dec 31, 2013 | 12.08% | 20.34% |
| Dec 31, 2012 | 12.50% | 21.97% |
| Dec 31, 2011 | 18.01% | 34.92% |
| Dec 31, 2010 | 11.77% | 24.34% |
| Dec 31, 2009 | 17.33% | 25.32% |
| Dec 31, 2008 | 16.05% | 1.64% |
| Dec 31, 2007 | 2.98% | 16.06% |
| Dec 31, 2006 | 10.32% | 3.84% |
| Dec 31, 2005 | 10.77% | 19.92% |
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).