eBay Inc. (NASDAQ:EBAY)

Asset Turnover

The reported total asset turnover ratio exhibited modest fluctuations over the period, starting at 0.4 in 2014, peaking slightly at 0.48 in 2015, dipping to around 0.37-0.38 in 2016 and 2017, before rising again to 0.47 in 2018. The adjusted total asset turnover tracked a similar but generally higher trend, increasing from 0.39 in 2014 to 0.58 in 2018, indicating improving efficiency in the use of assets when adjustments are considered.

Liquidity Ratios

The reported current ratio increased markedly in 2015 to 3.49 from 1.51 in 2014, suggesting a stronger liquidity position, then decreased to 2.31 and 2.19 in 2016 and 2017 respectively, before declining further to 1.6 in 2018. Adjusted current ratio values followed a similar pattern but showed slightly higher ratios, indicating that while liquidity strengthened sharply early on, it has softened progressively towards 2018.

Leverage Ratios

Both reported and adjusted debt to equity ratios rose significantly from 2014 through 2018. Specifically, the reported ratio increased from 0.38 in 2014 to 1.47 in 2018. Adjusted values display a more pronounced increase, rising from 0.34 to 2.07. Debt to capital ratios similarly increased over the period, reflecting an increase in the proportion of debt in the company's capital structure. Financial leverage ratios also rose steadily, with adjusted financial leverage moving from 1.95 to 3.97, indicating greater use of debt financing.

Profit Margins

The reported net profit margin showed exceptional volatility. It jumped from a negligible 0.26% in 2014 to 20.08% in 2015, then surged dramatically to 80.92% in 2016 before turning sharply negative at -10.62% in 2017, and recovered to 23.54% in 2018. The adjusted net profit margin was more stable, ranging from 14.88% to 23.15% in the peak years, with a moderate dip in 2017 but a recovery by 2018, indicating smoother underlying profitability trends after adjustments.

Return on Equity (ROE)

Reported ROE reflected significant swings, starting near zero at 0.23% in 2014, surging to 26.23% in 2015, then sharply peaking at 68.94% in 2016, falling to a negative -12.6% in 2017, before rebounding to 40.28% in 2018. Adjusted ROE was steadier, showing a gradual increase from 12.38% to 46.86% over the period, indicating consistent improvement in return on shareholders' equity once abnormal items are accounted for.

Return on Assets (ROA)

Reported ROA reflects a similar trend of extreme volatility as seen in profit margins and ROE, rising from a low 0.1% in 2014 to 9.7% in 2015, then a sharp peak of 30.47% in 2016, falling to a negative -3.91% in 2017, and recovering to 11.09% in 2018. Adjusted ROA demonstrated gradual improvement from 6.34% up to 11.8%, with a small dip in 2017, indicating sustained underlying asset profitability across the timeline.

Net Revenues

Net revenues demonstrated a notable decline from 17,902 million USD in 2014 to 8,592 million USD in 2015, representing a significant decrease. Following this drop, revenues showed a gradual but steady recovery, rising to 8,979 million USD in 2016, 9,567 million USD in 2017, and reaching 10,746 million USD in 2018. Overall, the trend highlights an initial sharp contraction followed by consistent growth over the subsequent years.

Total Assets

Total assets experienced a substantial reduction from 45,132 million USD in 2014 to 17,785 million USD in 2015. After this drop, assets displayed a partial rebound to 23,847 million USD in 2016 and further increased to 25,981 million USD in 2017. However, in 2018, total assets declined once again to 22,819 million USD. This pattern indicates significant asset fluctuations with an overall declining tendency after the initial sharp decrease.

Reported Total Asset Turnover

The reported total asset turnover ratio increased from 0.40 in 2014 to 0.48 in 2015, signifying improved asset efficiency immediately following the asset reduction. Subsequently, the ratio decreased to 0.38 in 2016 and further slightly declined to 0.37 in 2017, indicating reduced efficiency. In 2018, the ratio rebounded to 0.47, suggesting recovery in the company’s effectiveness in using its assets to generate revenues.

Adjusted Net Revenues

Adjusted net revenues closely mirror the trend observed in net revenues, starting at 17,932 million USD in 2014 and sharply decreasing to 8,590 million USD in 2015. From 2015 onwards, there is a steady upward trajectory, with adjusted net revenues reaching 8,983 million USD in 2016, 9,574 million USD in 2017, and peaking at 10,779 million USD in 2018. The consistency between adjusted and reported net revenues indicates reliable adjustments.

Adjusted Total Assets

Adjusted total assets follow a similar but less volatile pattern compared to reported total assets, declining from 45,653 million USD in 2014 to 18,075 million USD in 2015. Thereafter, adjusted assets progressively increased to 19,532 million USD in 2016 and 21,169 million USD in 2017 before dropping to 18,648 million USD in 2018. Compared to the reported perspective, the adjusted figures suggest a smoother asset base movement, though still reflecting a general decreasing trend post-2015.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio improved significantly from 0.39 in 2014 to 0.48 in 2015, indicating enhanced asset utilization following the asset base reduction. It then slightly decreased to 0.46 in 2016 and 0.45 in 2017, before rising to a notably higher level of 0.58 in 2018. The 2018 figure suggests a meaningful enhancement in the company’s efficiency in generating revenues from its adjusted asset base.

Summary

The financial data reveal a pronounced restructuring or divestment event around 2015, evidenced by sharp declines in both revenues and assets. Post-2015, the company showed a recovery in revenues accompanied by fluctuations in asset levels. Asset turnover ratios, both reported and adjusted, improved significantly immediately following the reduction in assets and exhibited trends of moderate decline before improving again in 2018. The increase in asset turnover ratios in the later period suggests enhanced operational efficiency in leveraging the asset base to support revenue growth. Overall, the company appears to have undergone a period of contraction followed by operational adjustments leading to improved asset utilization and gradual revenue restoration.

The analysis of the annual financial data reveals notable fluctuations in both current assets and current liabilities over the five-year period ending December 31, 2018. Current assets showed a significant decline from US$26,531 million in 2014 to US$7,126 million in 2018. This represents a continuous downtrend with a brief increase in 2016 before the values decreased again.

Current liabilities also experienced a sharp decrease initially, dropping from US$17,531 million in 2014 to US$2,263 million in 2015. Subsequently, liabilities increased steadily over the following years, reaching US$4,454 million by the end of 2018.

The reported current ratio indicates varying liquidity conditions during the analyzed periods. The ratio increased substantially from 1.51 in 2014 to a peak of 3.49 in 2015, signifying improved short-term liquidity. However, after 2015, the ratio declined consistently to 1.6 by 2018, approaching the liquidity level observed in 2014.

Adjusted figures for current assets and liabilities display a pattern closely mirroring the reported values but with slight adjustments. Adjusted current assets decreased from US$26,633 million in 2014 to US$7,232 million in 2018, while adjusted current liabilities decreased from US$17,343 million to US$4,284 million over the same period.

The adjusted current ratio shows a trend similar to the reported ratio, climbing to a high of 3.7 in 2015 before declining steadily to 1.69 in 2018. This suggests that after a period of strong liquidity, the company's ability to cover short-term obligations diminished gradually but remained above 1.0, indicating positive net working capital throughout.

Key observations:

- Both current assets and current liabilities underwent significant reductions from 2014 to 2015, followed by more moderate changes.

- A peak in liquidity ratios occurred in 2015, suggesting an unusually strong short-term financial position that year.

- Subsequent years showed a declining trend in liquidity, yet ratios remained above one, indicating maintained solvency.

- Adjusted data closely parallels reported figures, confirming consistent financial trends despite minor data modifications.

The analysis of the financial data over the period from the end of 2014 to the end of 2018 reveals several notable trends in the company's debt and equity positions.

Total Debt

Total debt exhibited fluctuations across the years. It decreased from $7,627 million in 2014 to $6,779 million in 2015, followed by a significant increase to $8,960 million in 2016. The upward trajectory continued in 2017, reaching $10,015 million, before slightly declining to $9,231 million in 2018. This pattern indicates periods of both deleveraging and increased borrowing, with an overall increasing tendency in total debt by the end of the analyzed timeframe.

Stockholders’ Equity

Stockholders’ equity experienced a marked decline over the period. It started at $19,906 million in 2014 but dropped sharply to $6,576 million in 2015. There was a partial recovery in 2016 to $10,539 million, yet this was followed by a decline in subsequent years, culminating in $6,281 million by 2018. This downward trend suggests a reduction in net assets available to shareholders.

Reported Debt to Equity Ratio

The reported debt to equity ratio increased consistently throughout the period. Beginning at a relatively low ratio of 0.38 in 2014, it rose to 1.03 in 2015. Following minor fluctuations, the ratio reached 1.47 by 2018. The steady increase implies growing financial leverage and potentially higher risk associated with the capital structure.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to the reported total debt, with an initial decline from $8,046 million in 2014 to $6,985 million in 2015. Thereafter, it increased annually, peaking at $10,296 million in 2017 before slightly decreasing to $9,746 million in 2018.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity shows a continuous decline over the period, starting at $23,384 million in 2014 and steadily decreasing each year to reach $4,697 million by 2018. This trend is more pronounced than the reported equity, indicating adjustments that further reduce the equity base.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio demonstrates an accelerating increase over the years, moving from 0.34 in 2014 to 2.07 in 2018. This indicates that when adjustments are taken into account, the company's leverage increased substantially, more than doubling by the end of the period. This heightened ratio reflects a greater reliance on debt financing relative to equity.

The data reveals several notable trends in the financial leverage and capital structure over the five-year period ending in 2018. Both total debt and adjusted total debt exhibit a general upward trajectory, with total debt increasing from US$7,627 million in 2014 to a peak of US$10,015 million in 2017, followed by a slight reduction to US$9,231 million in 2018. Adjusted total debt follows a similar pattern, increasing steadily from US$8,046 million in 2014 to US$10,296 million in 2017, then marginally declining to US$9,746 million in 2018.

Total capital shows a different trend, starting at US$27,533 million in 2014 and then experiencing a significant decline to US$13,355 million in 2015. Although there is a partial recovery in 2016 (US$19,499 million) and 2017 (US$18,078 million), total capital decreases again in 2018 to US$15,512 million. Adjusted total capital mirrors this pattern but with generally lower values, declining from US$31,430 million in 2014 to US$14,443 million in 2018. This indicates a contraction in the company's capital base over the period.

Consequently, the reported debt to capital ratio shows an increasing trend, rising from 0.28 in 2014 to 0.60 in 2018. This increment suggests a growing reliance on debt financing relative to total capital. The adjusted debt to capital ratio follows the same pattern but starts at a slightly lower base of 0.26 in 2014 and reaches 0.67 by 2018, indicating an even higher degree of leverage when adjustments are accounted for.

Overall, the data points to a shift toward higher financial leverage over the given period, with the company increasing its debt levels relative to its capital. The decreasing capital levels and rising debt ratios could imply increased financial risk. The peak in debt levels in 2017 followed by a reduction in 2018 may indicate some efforts to deleverage or adjust the capital structure. However, the sustained increase in leverage ratios suggests that debt remains a significant component of the company's financing strategy as of 2018.

Total Assets

The total assets exhibited considerable fluctuation over the observed period. Starting at a high point in 2014, the figure sharply declined in 2015 before experiencing a gradual increase through 2017. However, it fell again in 2018, indicating a lack of consistent growth and potential asset restructuring or disposals during the timeframe.

Stockholders’ Equity

Stockholders’ equity followed a downward trajectory overall. After a notable drop from 2014 to 2015, there was a partial recovery in 2016. Subsequently, equity decreased again in 2017 and further declined in 2018, suggesting challenges in retaining earnings or returning shareholder value consistently.

Reported Financial Leverage

The ratio of reported financial leverage demonstrated an increasing trend, especially from 2016 onwards. Starting at 2.27 in 2014, it rose notably in 2015, dipped slightly in 2016, then climbed sharply through 2017 and 2018, reaching the highest level in the dataset. This indicates growing reliance on debt financing relative to equity.

Adjusted Total Assets

The adjusted total assets showed a decline initially from 2014 to 2015 but then maintained a relatively stable level with slight increases through 2017 before decreasing again in 2018. The pattern suggests moderate fluctuations but an overall downward adjustment compared to the reported total assets.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity decreased consistently throughout the period. The most pronounced decline occurred between 2014 and 2015, followed by continued reductions in subsequent years, highlighting a possibly more conservative assessment of equity value after adjustments.

Adjusted Financial Leverage

The adjusted financial leverage ratio showed a clear upward trend, rising steadily each year. Beginning from a lower base than the reported figure in 2014, it increased beyond the reported leverage by 2018, reaching nearly 4.0. This suggests that adjusted metrics paint a picture of increased financial risk and greater leverage over time.

Net Income (Loss)

The net income exhibited significant fluctuations over the analyzed period. Starting from a modest profit of 46 million USD at the end of 2014, it sharply increased to a peak of 7,266 million USD in 2016, followed by a notable loss of 1,016 million USD in 2017, before recovering to a positive figure of 2,530 million USD in 2018. This pattern indicates volatility in profitability with a substantial dip occurring in 2017.

Net Revenues

Reported net revenues demonstrated overall growth from 17,902 million USD in 2014 to 10,746 million USD in 2018. However, the trend was not linear; revenues declined almost by half from 2014 to 2015, then gradually increased each subsequent year. This suggests a period of contraction or restructuring before a recovery phase.

Reported Net Profit Margin

The net profit margin mirrored the volatility seen in net income. It increased drastically from 0.26% in 2014 to 80.92% in 2016, indicating an exceptionally high margin in that year. However, the margin then turned negative in 2017 (-10.62%), reflecting the loss incurred, before improving again to 23.54% in 2018. These fluctuations highlight instability in operational efficiency or extraordinary items affecting net profitability.

Adjusted Net Income (Loss)

Adjusted net income figures present a less volatile but still fluctuating trend. Starting at 2,895 million USD in 2014, the amount fell to 1,278 million USD in 2015, rose to 2,080 million USD in 2016, decreased to 1,586 million USD in 2017, and then increased again to 2,201 million USD in 2018. These adjusted results, which likely exclude certain non-recurring items, indicate more consistent underlying profitability compared to the raw net income figures.

Adjusted Net Revenues

The adjusted net revenues closely follow the pattern observed in reported net revenues, decreasing sharply from 17,932 million USD in 2014 to 8,590 million USD in 2015, then gradually rising to 10,779 million USD in 2018. This confirms the trend of initial revenue contraction followed by recovery across the period.

Adjusted Net Profit Margin

The adjusted net profit margin shows a generally positive and more stable performance relative to the reported net profit margin. It started at 16.14% in 2014, dipped slightly to 14.88% in 2015, peaked at 23.15% in 2016, declined to 16.57% in 2017, and improved again to 20.42% in 2018. These figures suggest that when excluding certain items, the company maintained solid profitability margins despite fluctuations in absolute income values.

The financial data demonstrates significant variability across the examined periods in key profitability and equity metrics.

Net Income (Loss)

Net income showed a sharp increase from 46 million USD in 2014 to a peak of 7,266 million USD in 2016, indicating strong profitability growth during this period. However, in 2017, there was a notable reversal to a net loss of 1,016 million USD, followed by a recovery to 2,530 million USD in 2018. This volatility suggests fluctuating operational performance or one-time events affecting earnings.

Stockholders’ Equity

Stockholders’ equity peaked at 19,906 million USD in 2014 but declined substantially in subsequent years, stabilizing around 6,281 million USD by 2018. This decline may reflect share repurchases, dividend payments, losses, or other equity transactions impacting the capital base.

Reported Return on Equity (ROE)

The reported ROE trend aligns with net income fluctuations, rising dramatically from 0.23% in 2014 to 68.94% in 2016, then turning negative to -12.6% in 2017 before recovering to 40.28% in 2018. The high ROE in 2016 and 2018 indicates periods of efficient equity utilization despite lower equity levels, while the negative ROE in 2017 reflects the loss incurred that year.

Adjusted Net Income (Loss)

Adjusted net income shows a more moderate and stable trend than reported net income. It decreased from 2,895 million USD in 2014 to 1,278 million USD in 2015, then increased to 2,080 million USD in 2016. After a slight dip in 2017 to 1,586 million USD, it rose again to 2,201 million USD in 2018. This smoothing suggests adjustments removed certain volatility related to one-time or unusual items.

Adjusted Stockholders’ Equity

Adjusted equity also declined over the period, from 23,384 million USD in 2014 to 4,697 million USD in 2018. The consistent decrease mirrors the trend in reported equity but remains generally higher, indicating adjustments that may exclude certain deductions or liabilities.

Adjusted Return on Equity (ROE)

Adjusted ROE demonstrates a generally positive and upward trend, starting at 12.38% in 2014, peaking at 27.46% in 2016, slightly declining in 2017 to 24.35%, and then increasing sharply to 46.86% in 2018. This indicates improving profitability relative to adjusted equity and reflects ongoing operational efficiency despite equity reductions.

Overall, the data reflects pronounced fluctuations in reported profitability and equity levels, with adjustments providing a smoother and more consistent view of financial performance. The decline in equity alongside elevated ROE metrics suggests leverage or capital structure changes that merit further investigation. The year 2017 stands out as an anomalous period with a net loss and negative reported ROE, contrasting with recovery in subsequent years.

Net income (loss)

The net income exhibits significant volatility over the analyzed period. It starts relatively low at 46 million US dollars in 2014, then sharply increases to 1,725 million in 2015 and to 7,266 million in 2016. A notable decline occurs in 2017, with a net loss of 1,016 million dollars, followed by a recovery to a net income of 2,530 million in 2018. This fluctuation indicates periods of both substantial profitability and significant financial setback.

Total assets

Total assets show a decreasing trend overall. Starting at 45,132 million US dollars in 2014, assets decline sharply to 17,785 million in 2015, followed by moderate increases in 2016 (23,847 million) and 2017 (25,981 million). However, the assets fall again in 2018 to 22,819 million. The general movement suggests a restructuring or divestment phase, with a reduction from the initial value despite some interim growth.

Reported Return on Assets (ROA)

The reported ROA reflects the volatile net income pattern. It begins very low at 0.1% in 2014, rises impressively to 9.7% in 2015 and further to 30.47% in 2016, indicating highly efficient asset utilization in that year. The ratio turns negative in 2017 at -3.91% due to the net loss, then rebounds to a positive 11.09% in 2018. The swings in ROA demonstrate an inconsistent ability to generate profit from assets over the years.

Adjusted net income (loss)

Adjusted net income follows a less volatile but still fluctuating pattern. It starts at 2,895 million dollars in 2014 and declines sharply to 1,278 million in 2015. There is a recovery and growth to 2,080 million in 2016, followed by a decrease to 1,586 million in 2017. The figure rises again to 2,201 million in 2018. The adjusted values suggest the exclusion of certain items reduces volatility but still shows inconsistent profitability trends.

Adjusted total assets

Adjusted total assets decrease steadily across the period, from 45,653 million in 2014 to 18,648 million in 2018. The decline is continuous, indicating ongoing asset reduction or revaluation, albeit at a smoother pace than the unadjusted assets.

Adjusted Return on Assets (ROA)

The adjusted ROA demonstrates a more stable and moderate profitability through asset utilization than the reported ROA. It starts at 6.34% in 2014, increases to 7.07% in 2015, and peaks at 10.65% in 2016. After a decline to 7.49% in 2017, it recovers to 11.8% in 2018. This pattern suggests improved operational performance when adjustments are taken into account, with consistent positive returns on assets despite asset reductions.