One of the more important ratios that E-bay must try to look into is that of the asset utilization ratios. This ratio is of prime important to E-Bay as it is the indicator of the performance of the E-Bay. It has to be kept in mind that the nature of the business in which E-Bay is involved, the utilization of the asset is of the prime importance, they have to consider the type of issues and problems that they are considering when conducting their business operations. If one looks at the nature of the business of E-Bay, it is pretty evident that the better utilization of assets is, the better are the chances about their efficiency and this will eventually reflect into their performance.
It is the online technology company that is enabling its users to commune trade and commerce activities through their reportable segments. There are marketplaces and market segments as well as the GSI that are the core business are of the E-Bay. The type of competency and the nature of the business imply that there must not be any wastage of the resources. The asset utilization rations means that how well the company is using some of its resources to make profits and how they can increase their efficiency with the help of these assets so it can make money. For instance, for E-Bay, it would be more important to know what the recievables from the customers are and how they can offer such goods and services that can in turn provide them with profits. As a matter of fact, these ratios are more important to them as compared to some of the profitability ratios as while profitability ratios would be able to provide the profits that they earn in certain context, the far better picture about the viability of the E-Bay can be seen if one looks at their utilization of assets.
Answer - 2
Organization's ability to meet its Financial Obligations
As far as the ability of the E-Bay to cover some of its financial obligations is concerned, it is important to look at the debt ration to get the better perspective of where the company is heading towards as far as covering some of its financial obligations is concerned. If one looks at these ratios, it is pretty evident that with each increasing year, E-Bay's ability to meet some ...
