Ebay Case Study

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eBay: Brief History and Recent Success Review Imagine an older, online business where everyone was happily buying and selling from it. People are auctioning off valuables and goods while buying a range of items for a cheaper price. It stays this way on the same black and white website to this very day. EBay has been around since it was “Formed as a sole proprietorship in September 1995," via California. Its platform is meant to allow buyers and sellers with internet access to connect globally. It determines its success by the success of the people buying and selling through it. Unfortunately, today more people are choosing other online sellers. These competitors, similar to eBay, have bolder advertisements, offer well-matched bargains, as well…show more content…
EBay Inc. gains profits from stockholders, as well as a percentage of each good sold through it. In 2015, eBay’s annual report, as well as its balance sheet and income statement, expressed the income flows and profits over the last three to four years. Using the information gathered, the graph below can express trends which prove that eBay is losing business. The first thing shown is the cost of net revenues which were higher in 2015 than the previous three shown. The percentage of net revenues was also higher in the same year. However the net income was significantly lower in 2015 than in 2013 and 2012. The year 2014 appears to be a sign of struggle, in which case 2015 did result in a better outcome for eBay. This can also be seen when looking at the debt ratio which expressed how close the assets and liabilities are. Since the assets exceeded the liabilities (debt) closely, one could infer that this year was not viewed as profitable. In 2013, the assets were much higher than the liabilities which expressed that this was a better year than 2014 was. According to these figures, the hit eBay took in 2014 could possibly be why the stock dropped around $30 less. The price is currently going up but not by much at all. Some new efforts are likely to be the cause of the current stock price corresponding to the year before
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