Financial Health of EBay
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Please review the financial information provided, and give your recommendation of the financial health of eBay. Please explain your reasoning. I have uploaded the finances over the last 3 years to help in recommendation.
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Please review the financial information provided, and give your recommendation of the financial health of eBay. Please explain your reasoning.
Income Statement Dec 06 Dec 05 Dec 04
Revenue 5969.7 4552.4 3271.3
Gross Profit 4713 3734.3 2656.9
Gross Profit Margin 0.789 0.82 0.812
Net Income After Taxes 1125.6 1082.1 784.3
Assets Dec 06 Dec 05 Dec 04
Total Current Assets 4,970.60 3,183.20 2,911.10
Net Fixed Assets 998.2 801.6 709.8
Other Noncurrent Assets 7,525.20 7,804.10 4,370.10
Total Assets 13,494.00 11,789.00 7,991.00
Liabilities Dec 06 Dec 05 Dec 04
Total Current Liabilities 2,518.40 1,484.90 1,084.90
Total Liabilities 2,589.40 1,741.00 1,262.70
Shareholder's Equity Dec 06 Dec 05 Dec 04
Total Shareholder's Equity 10,904.60 10,048.00 6,728.30
Shares Outstanding (mil.) 1,368.50 1,404.20 1,338.60
Cash Flow Dec 06 Dec 05 Dec 04
Net Operating Cash Flow 2,247.80 2,009.90 1,285.30
Net Investing Cash Flow 228.9 -2,452.70 -2,013.20
All dollar figures in millions
Liquidity Ratios:
Working capital
working capital is current assets minus current liabilities
For the year 2006 working capital = 4,970.60 - 2,518.40 = 2,452.20
For the year 2005 working capital = 3,183.20 - 1,484.90 = 1,698.30
Current ...
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