Ebay Case Analysis

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)      .03918               X        .2941                    X 1.160
o    ROE= .013

Step 3: External Environment
?    Opportunities
1.    The changing lifestyles of people can help eBay penetrate the market even further and broaden their Customer base
2.    Look f ...
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