Financial Analysis E-bay

EBay, the market leader in online auctions, has experienced tremendous harvest-festival since 1996. The avocation numbers from Exhibit 1 demonstrate eBays late step-up: - The number of users rose from 41,000 in 1996 to 10,006,000 (525% yearly harvest-home rate) - Merchandise sales emergenced from $7 trillion in 1996 to $2.8 one thousand thousand (637% annual harvest-home 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 Revenue Growth         N/A         29.1%         108.2%         160.9% Operating put on (as % of receipts)         20.0%         25.9%         14.8%         -5.2% Oper ating disbursement (as % of revenue)         58.7%         55.1%         66.5%         75.0% realize sales and Marketing Expense (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 Assets (Net Income as % of Assets)         N/A         125.6%         4.9%         1.1% Return on virtue (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 Ass! et Ratio         N/A         0.10         0.33         0.03 Debt to Equity Ratio         N/A         0.55         0.006         0.

006 silver 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 let out that revenue increased from $32, 051,000 in 1996 to $224,724,000 in 1999, while pull in 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 astonishing increase of 160.9%. However, for the first clock time in the history of eBay, a disallow run service occurred in 1999. After careful question of the ratios and figures, the negative operating profit can be in the main attributed to speedily rising operating expenses compared to revenues and the ever-increasing hyper-competition in the online auction industry. Sales and market expenses have stayed constant compared to... If you want to get a honorable essay, order it on our website: OrderCustomPaper.com

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