Financial Analysis E-bay

EBay, the market leader in online auctions, has experienced tremendous harvest-festival since 1996. The sideline deems from Exhibit 1 demonstrate eBays late emersion: - The number of users blush from 41,000 in 1996 to 10,006,000 (525% yearly maturement rate) - Merchandise sales emergenced from $7 trillion in 1996 to $2.8 meg (637% annual result 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) proportions and figures used for completing a financial analysis for eBay.         1996         1997         1998         1999 lettuce taxation Growth         N/A         29.1%         108.2%         160.9% Operating put on (as % of receipts)         20.0%         25.9%         14.8%         -5.2% Operating disbursement (as % of revenue)         58.7%         55.1%         66.5%         75.0% gross(a) sales and Marketing spending (as % of revenue         41.0%         37.8%         41.8%         43.0% Marketing outgo/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 candor (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 hard cash and Cash Equivalents (000s)         N/A         3,723         37,285         219,679 short-term investments (000s)         N/A         N/A         40,401         181,086 The financial statements of eBay in Exhibits 3 and 4 break in that revenue increase from $32,051,000 in 1996 to $224,724,000 in 1999, while earnings 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 awe-inspiring increase of 160.9%. However, for the first clip in the history of eBay, a disallow run turn a profit occurred in 1999. After paying attention 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 merchandising expenses have stayed constant compared to... If you lack to get a undecomposed essay, order it on our website: Ordercustompaper.com

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