Ebay Case Analysis Essay

Words: 1238
Pages: 5

EBay Case Analysis

Step One: Read.

Step 2: Dupont Ratio and Financial Analysis o Two year Financial Ratio o Short Term o Current Ratio
• 2002: 1,468,458/386,224= 3.8
• 2001= 4.9 o Long Term o Total Debt Ratio
• Total ass. – Total equity/ Total ass.
• 2002= .1377
• 2001= .1485771 o Asset Utilization, or turnover ratios o Total Asset Turnover
• Sales/ total assets
• 2002= .29
• 2001= o Profitability o Return on assets= net income/ total assets o 2002= .0117 o 2001= .053885 o Market Value o Price earnings ratio= price per share/ earnings per share

o Du Pont Ratio o ROE= (Net Profit/ Sales) X (Sales/ Assets) X (Assets/ Equity) o 2002 ROE= (48,294/1213000) X (1,213,000/ 4,124,444) X (4,124,444/ 3,556,473)
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Step Nine:

Invest lots of time and money to stay on the cutting edge of security and get involved with partners who have low risk and lower your risk.
Create plans for growth to ensure and steady gain. Also they should get involved in the Internet business and start bringing the Internet to places that don't have it yet but have a large population so that they can create more Internet users who will in turn become EBay