Financial Analysis E-bay

EBay, the market leader in online auctions, has experienced tremendous harvest-festival since 1996. The future(a) takingss from Exhibit 1 demonstrate eBays upstart egress: - The number of users move up from 41,000 in 1996 to 10,006,000 (525% yearly suppu dimensionn rate) - Merchandise sales emergenced from $7 trillion in 1996 to $2.8 one thousand thousand (637% annual product rate) - The number of auctions jumped from 289,000 in 1996 to 129,560,000 (665% annual growth rate) The chart below focuses on the of the essence(p) ratios and figures used for completing a financial analysis for eBay.         1996         1997         1998         1999 lettuce tax revenue Growth         N/A         29.1%         108.2%         160.9% Operating put on (as % of receipts)         20.0%         25.9%         14.8%         -5.2% Operating write down (as % of revenue)         58.7%         55.1%         66.5%         75.0% primitive sales and Marketing depreciate (as % of revenue         41.0%         37.8%         41.8%         43.0% Marketing expense/Customer (regular users)         $320         $45.80         $16.50         $9.59 Marketing Expense/list         $45.46         $3.55         $1.07         $0.74 relapse on pluss (Net Income as % of Assets)         N/A         125.6%         4.9%         1.1% Return on uprightness (Net Profit as % of Equity)         N/A         695.7%         7.2%         1.3% Current ratio         N/A         4.42         3.96         5.17 Debt to Asset Ratio         N/A         0.10         0.33         0.03 Debt to Equity Ratio         N/A         0.55         0.006         0.

006 notes and Cash Equivalents (000s)         N/A         3,723         37,285         219,679 short-run investments (000s)         N/A         N/A         40,401         181,086 The financial statements of eBay in Exhibits 3 and 4 peril that revenue change magnitude from $32,051,000 in 1996 to $224,724,000 in 1999, while earn income for the same period increased from $3,338,000 to $10,828,000. EBays revenue growth in 1999, from the previous year, had an amazing increase of 160.9%. However, for the first clipping in the history of eBay, a disallow run clams occurred in 1999. After careful question of the ratios and figures, the negative operating profit can be in the main attributed to right away rising operating expenses compared to revenues and the ever-increasing hyper-competition in the online auction industry. Sales and merchandise expenses have stayed constant compared to... If you trust to get a plentiful essay, order it on our website: Ordercustompaper.com

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