EBay Bonds

EBAY -  USA Stock  

USD 75.97  1.25  1.67%

EBay's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. EBay's financial risk is the risk to EBay stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Continue to the analysis of EBay Fundamentals Over Time.

EBay Bonds 

 
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EBay Debt Current is fairly stable at the moment as compared to the past year. EBay reported Debt Current of 6 Million in 2020. Long Term Debt to Equity is likely to rise to 2.34 in 2021, whereas Total Debt is likely to drop slightly above 8 B in 2021.

EBay Current Financial Burden

EBay's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. EBay's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps EBay Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect EBay's stakeholders.

Asset vs Debt

Equity vs Debt

For most companies, including EBay, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for the executing running EBay Inc the most critical issue when dealing with liquidity needs is whether the current assets are properly aligned with its current liabilities. If not, management will need to obtain alternative financing to ensure that there are always enough cash equivalents on the balance sheet in reserve to pay for obligations.
Given that EBay's debt-to-equity ratio measures a company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which EBay is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of EBay to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, EBay is said to be less leveraged. If creditors hold a majority of EBay's assets, the company is said to be highly leveraged.

EBay Quarterly Debt to Equity Ratio

1.445Share
Given the importance of EBay's capital structure, the first step in the capital decision process is for the management of EBay to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of EBay Inc to issue bonds at a reasonable cost.

EBay Bond Ratings

EBay Inc bond ratings play a critical role in determining how much EBay have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for EBay's borrowing costs.
Overall Bond Rating
Strong
Average S&P Rating
A
Piotroski F Score
6  Healthy
Beneish M Score

EBay Inc Debt to Cash Allocation

As EBay Inc follows its natural business cycle, the capital allocation decisions will not magically go away. EBay's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company currently holds 9.35 B in liabilities with Debt to Equity (D/E) ratio of 0.72, which is about average as compared to similar companies. EBay Inc has a current ratio of 3.88, suggesting that it is liquid enough and is able to pay its financial obligations when due.

EBay Receivables Over Time

EBay Assets Financed by Debt

The debt-to-assets ratio shows the degree to which EBay uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.

EBay Debt Ratio

    
  36.9   
It appears slightly above 63% of EBay's assets are financed through equity. Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the EBay's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of EBay, which in turn will lower the firm's financial flexibility. Like all other financial ratios, an EBay debt ratio should be compared their industry average or other competing firms.
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EBay Corporate Bonds Issued

EBay issues bonds to finance its operations. Corporate bonds make up one of the most significant components of the U.S. bond market and are considered the world's largest securities market. EBay Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most EBay bonds can be classified according to their maturity, which is the date when EBay Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Issue DateMaturityCouponRef Coupon  Rating
EBAY INC 2607/24/201207/15/20222.62.0
A
EBAY INC 407/24/201207/15/20424.03.0
A
EBAY INC 34507/28/201408/01/20243.452.25
A

EBay Inc Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of EBay, understanding its historical liability is critical in projecting EBay's future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how EBay uses its financing power over time.

Understaning EBay Use of Financial Leverage

EBay financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures EBay's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of EBay assets, the company is considered highly leveraged. Understanding the composition and structure of overall EBay debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it.
Please read more on our technical analysis page.
Last ReportedProjected for 2021
Total Debt8.1 BB
Debt CurrentM6.2 M
Debt Non Current8.1 B7.6 B
Issuance Repayment of Debt Securities-6 M-6.2 M
Long Term Debt to Equity 2.17  2.34 
Debt to Equity Ratio 4.42  4.77 
eBay Inc. operates marketplace platforms that connect buyers and sellers worldwide. The company was founded in 1995 and is headquartered in San Jose, California. EBay operates under Internet Retail classification in the United States and is traded on NASDAQ Exchange. It employs 12700 people.

EBay Investors Sentiment

The influence of EBay's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in EBay. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Current Sentiment - EBAY

EBay Inc Investor Sentiment

Majority of Macroaxis users are currently bullish on EBay Inc. What is your opinion about investing in EBay Inc? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Pair Trading with EBay

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if EBay position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in EBay will appreciate offsetting losses from the drop in the long position's value.

EBay Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for EBay and Mercadolibre. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Continue to the analysis of EBay Fundamentals Over Time. Note that the EBay Inc information on this page should be used as a complementary analysis to other EBay's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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When running EBay Inc price analysis, check to measure EBay's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy EBay is operating at the current time. Most of EBay's value examination focuses on studying past and present price action to predict the probability of EBay's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move EBay's price. Additionally, you may evaluate how the addition of EBay to your portfolios can decrease your overall portfolio volatility.
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The market value of EBay Inc is measured differently than its book value, which is the value of EBay that is recorded on the company's balance sheet. Investors also form their own opinion of EBay's value that differs from its market value or its book value, called intrinsic value, which is EBay's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because EBay's market value can be influenced by many factors that don't directly affect EBay Inc underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between EBay's value and its price as these two are different measures arrived at by different means. Investors typically determine EBay value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, EBay's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.