Financial Analysis E-bay

EBay, the market leader in online auctions, has experienced tremendous harvest-festival since 1996. The undermentioned upshots from Exhibit 1 demonstrate eBays new-fangled reaping: - The number of users roseate from 41,000 in 1996 to 10,006,000 (525% yearly emergence rate) - Merchandise sales emergenced from $7 trillion in 1996 to $2.8 trillion (637% annual harvest-tide 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) balances and figures used for completing a financial analysis for eBay.         1996         1997         1998         1999 lettuce plebeian Growth         N/A         29.1%         108.2%         160.9% Operating put on (as % of receipts)         20.0%         25.9%         14.8%         -5.2% Operating outlay (as % of revenue)         58.7%         55.1%         66.5%         75.0% gross sales and Marketing cost (as % of revenue         41.0%         37.8%         41.8%         43.0% Marketing expenditure/Customer (regular users)         $320         $45.80         $16.50         $9.59 Marketing Expense/list         $45.46         $3.55         $1.07         $0.74 relapse on additions (Net Income as % of Assets)         N/A         125.6%         4.9%         1.1% Return on blondness (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 capital and Cash Equivalents (000s)         N/A         3,723         37,285         219,679 short investments (000s)         N/A         N/A         40,401         181,086 The financial statements of eBay in Exhibits 3 and 4 fracture that revenue change magnitude from $32,051,000 in 1996 to $224,724,000 in 1999, while terminal 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 staggering increase of 160.9%. However, for the first measure in the history of eBay, a disallow direct returns occurred in 1999. After diligent question of the ratios and figures, the negative operating profit can be in the main attributed to apace 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 requirement to get a bountiful essay, order it on our website: Ordercustompaper.com

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