Corporate Finance Company Profile Ebay Essay Example | Topics and Well Written Essays - 1250 words

Corporate Finance Company Profile Ebay - Essay Example A significant boost is recorded in the year 2008 mainly due to the control on revenue expenditures and also on the fixed charges which are in the form of interest expense. The credit mainly goes to the management who has taken corrective measures like controlling fixed and operating expenses which have made a significant impression on eBay’s net income. The slight increment in cash and cash equivalent in the year 2008 with 20% as compared to the year 2007, may be a result of the fact that the company has invested in securities, paying-off liabilities, etc. It is quite obvious that management has been able to implement effective cash management techniques. The cash flow of eBay from 2006 to 2008 suggests that its operating activities are slightly high in the year 2008, amounting to $2,881,995m in comparison with the rest of the years, due to its massive business volume and operations; there has been an increase in the operating activities of the company. EBay’s management has, however, made huge investments in property plant and equipment, because of which its investing activities are higher in the year 2008, primarily, due to the principal loans receivable, in comparison with the years 2006 and 2007. eBay’s financing activities mainly consist of repurchases of common stock. The sole reason behind treasury stock is to regain the market position by increasing the value of its stock. eBay’s management has never paid cash dividends on their stocks and also there is no clear indication of it happening in the near future. And hence it is impossible to observe the dividend yield and dividend growth pattern of eBay (Annual Reports, 2008). Due to the expansion in the business company require some fixed asset for maximum use of the resources for uplifting the business operation and meets the customer demand so there is a slight variation in the year 2008 with respect to other years.