Comparison and Financial Assessment of eBay, the Clorox Company, and Darden Restaurants

2264 Words Jan 15th, 2018 9 Pages
The report will look briefly at the background of each firm and undertake a financial analysis looking at a range of issues in order to compare the companies and then determine the appropriate capital structure for each company. The financial assessment will include an examination of the debt/equity ratios, profitability, liabilities and assets as well as risk.
The Nature of the Businesses eBay eBay was founded in 1995 and gained the first mover advantage establishing itself as the first major online auction site. The firm started out offering its' services as an intermediary, facilitating the auction of goods by providing a common platform to be used by buyers and sellers. Today the firm has evolved significantly, operating across the globe with more than 97 million different active users registered (eBay, 2012). In total, the organization facilitates the sale of more than US $2,000 every second of every day (eBay, 2012). The growth of the auction service has died classified the development as well as acquisition strategies to provide services and products that complement the core operations. For example, the acquisition of PayPal, the online payment provider has complimented the ability for consumers to pay for goods…
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