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 ...