Microsoft Excel LibreOffice Calc

Liquidity Analysis

Difficulty: Beginner


Ratios (Summary)

eBay Inc., liquidity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Current ratio 2.19 2.31 3.49 1.51 1.84
Quick ratio 1.85 2.01 2.98 1.43 1.74
Cash ratio 1.66 1.86 2.71 0.58 0.71

Source: Based on data from eBay Inc. Annual Reports

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. eBay Inc.'s current ratio deteriorated from 2015 to 2016 and from 2016 to 2017.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. eBay Inc.'s quick ratio deteriorated from 2015 to 2016 and from 2016 to 2017.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. eBay Inc.'s cash ratio deteriorated from 2015 to 2016 and from 2016 to 2017.

Current Ratio

eBay Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Current assets 7,743  8,875  7,904  26,531  23,283 
Current liabilities 3,539  3,847  2,263  17,531  12,639 
Ratio
Current ratio1 2.19 2.31 3.49 1.51 1.84
Benchmarks
Current Ratio, Competitors
Amazon.com Inc. 1.04 1.04 1.08 1.12 1.07
Costco Wholesale Corp. 0.99 0.98 1.05 1.22 1.19
Home Depot Inc. 1.25 1.36 1.36 1.42 1.34
Lowe's Cos. Inc. 1.00 1.01 1.08 1.16 1.27
Netflix Inc. 1.40 1.25 1.54 1.48 1.42
Target Corp. 0.94 1.12 1.20 0.91 1.17
TJX Cos. Inc. 1.63 1.54 1.71 1.72 1.52
Walmart Inc. 0.86 0.93 0.97 0.88 0.83
Current Ratio, Sector
General Retailers 1.03 1.07 1.12 1.09 1.09
Current Ratio, Industry
Consumer Services 0.98 1.05 1.12 1.11 1.13

Source: Based on data from eBay Inc. Annual Reports

2017 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 7,743 ÷ 3,539 = 2.19

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. eBay Inc.'s current ratio deteriorated from 2015 to 2016 and from 2016 to 2017.

Quick Ratio

eBay Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 2,120  1,816  1,832  6,328  4,494 
Short-term investments 3,743  5,333  4,299  3,770  4,531 
Accounts receivable, net 695  592  619  797  899 
Loans and interest receivable, net 3,600  2,789 
Funds receivable and customer accounts 10,545  9,260 
Total quick assets 6,558  7,741  6,750  25,040  21,973 
Current liabilities 3,539  3,847  2,263  17,531  12,639 
Ratio
Quick ratio1 1.85 2.01 2.98 1.43 1.74
Benchmarks
Quick Ratio, Competitors
Amazon.com Inc. 0.70 0.74 0.71 0.74 0.67
Costco Wholesale Corp. 0.41 0.38 0.46 0.59 0.55
Home Depot Inc. 0.32 0.33 0.28 0.31 0.34
Lowe's Cos. Inc. 0.05 0.07 0.06 0.06 0.09
Netflix Inc. 0.52 0.38 0.65 0.60 0.56
Target Corp. 0.20 0.32 0.19 0.05 0.47
TJX Cos. Inc. 0.78 0.61 0.76 0.75 0.60
Walmart Inc. 0.19 0.22 0.24 0.20 0.20
Quick Ratio, Sector
General Retailers 0.42 0.43 0.42 0.46 0.46
Quick Ratio, Industry
Consumer Services 0.50 0.54 0.55 0.55 0.58

Source: Based on data from eBay Inc. Annual Reports

2017 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= 6,558 ÷ 3,539 = 1.85

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. eBay Inc.'s quick ratio deteriorated from 2015 to 2016 and from 2016 to 2017.

Cash Ratio

eBay Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 2,120  1,816  1,832  6,328  4,494 
Short-term investments 3,743  5,333  4,299  3,770  4,531 
Total cash assets 5,863  7,149  6,131  10,098  9,025 
Current liabilities 3,539  3,847  2,263  17,531  12,639 
Ratio
Cash ratio1 1.66 1.86 2.71 0.58 0.71
Benchmarks
Cash Ratio, Competitors
Amazon.com Inc. 0.54 0.59 0.58 0.62 0.54
Costco Wholesale Corp. 0.33 0.30 0.39 0.51 0.46
Home Depot Inc. 0.18 0.18 0.15 0.18 0.22
Lowe's Cos. Inc. 0.05 0.07 0.06 0.06 0.09
Netflix Inc. 0.52 0.38 0.65 0.60 0.56
Target Corp. 0.20 0.32 0.19 0.05 0.06
TJX Cos. Inc. 0.73 0.56 0.71 0.69 0.54
Walmart Inc. 0.10 0.13 0.14 0.10 0.11
Cash Ratio, Sector
General Retailers 0.32 0.33 0.32 0.29 0.27
Cash Ratio, Industry
Consumer Services 0.28 0.32 0.32 0.30 0.31

Source: Based on data from eBay Inc. Annual Reports

2017 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= 5,863 ÷ 3,539 = 1.66

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. eBay Inc.'s cash ratio deteriorated from 2015 to 2016 and from 2016 to 2017.