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
Analysis of the Return on Equity (ROE) from 2005 to 2018 reveals a transition from a period of steady equity accumulation and moderate returns to a period of high volatility characterized by aggressive equity reduction and erratic net income performance.
- Initial Growth and Stabilization Phase (2005–2013)
- Between 2005 and 2013, the ROE remained largely within a range of 10% to 18%, with the exception of a sharp decline to 2.98% in 2007. This period was marked by a consistent increase in stockholders' equity, which grew from 10.048 billion USD to a peak of 23.647 billion USD. The growth in the equity base provided a stabilizing effect on the return ratio despite fluctuations in annual net income.
- Equity Contraction and ROE Amplification (2014–2018)
- Starting in 2014, a significant reversal in equity trends occurred, with stockholders' equity falling from 19.906 billion USD to 6.281 billion USD by 2018. This contraction of the equity base served to amplify the impact of net income variations on the ROE. This is evidenced by the dramatic surge to 68.94% in 2016, which was driven by a peak net income of 7.266 billion USD against a reduced equity base of 10.539 billion USD.
- Income Volatility and Recent Recovery (2017–2018)
- The final two years of the period show extreme swings in profitability. A net loss of 1.016 billion USD in 2017 resulted in a negative ROE of -12.60%. Subsequently, a return to profitability in 2018, with net income reaching 2.530 billion USD, combined with a further reduction in equity to 6.281 billion USD, drove the ROE back up to 40.28%.
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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).