Etsy Inc (ETSY)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 322.72 | 111.12 | 92.01 | 85.42 | 76.34 |
| Payables turnover | 29.81 | 27.70 | 25.89 | 23.37 | 11.37 |
| Working capital turnover | 4.24 | 3.20 | 2.91 | 3.21 | 1.20 |
Etsy Inc's activity ratios provide insight into how efficiently the company is managing its assets and liabilities.
1. Inventory Turnover: The company did not provide data for inventory turnover for the years 2020 to 2024. This ratio typically measures how many times a company sells and replaces its inventory during a specific period. The absence of this data makes it difficult to assess how effectively Etsy is managing its inventory levels.
2. Receivables Turnover: Etsy's receivables turnover ratio has shown a consistent increase from 76.34 in 2020 to 322.72 in 2024. This indicates that the company is collecting its accounts receivable at a faster rate over the years, reflecting efficient management of credit sales and collection processes.
3. Payables Turnover: The payables turnover ratio has also been on an upward trend, increasing from 11.37 in 2020 to 29.81 in 2024. This suggests that Etsy is taking longer to pay its suppliers, which may indicate improved liquidity management or negotiation of better payment terms.
4. Working Capital Turnover: The working capital turnover ratio has shown fluctuations during the period, with a peak of 4.24 in 2024. This ratio reflects how efficiently the company is using its working capital to generate sales. The increasing trend indicates that Etsy is making more revenue per dollar of working capital invested.
Overall, Etsy Inc appears to be managing its receivables and payables efficiently, as indicated by the increasing turnover ratios. However, the lack of inventory turnover data limits a complete evaluation of the company's overall activity and efficiency in managing its assets.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 1.13 | 3.28 | 3.97 | 4.27 | 4.78 |
| Number of days of payables | days | 12.24 | 13.18 | 14.10 | 15.62 | 32.11 |
Etsy Inc's activity ratios provide insights into its efficiency in managing inventory, collecting receivables, and paying its suppliers.
1. Days of Inventory on Hand (DOH): The data provided does not contain specific values for Etsy's DOH, making it challenging to analyze the company's inventory management efficiency.
2. Days of Sales Outstanding (DSO): Etsy's DSO has shown a decreasing trend over the years, declining from 4.78 days as of December 31, 2020, to 1.13 days as of December 31, 2024. This indicates that the company has been able to collect its accounts receivable more quickly, which is a positive sign of efficient credit management.
3. Number of Days of Payables: Etsy has managed to reduce its days of payables from 32.11 days as of December 31, 2020, to 12.24 days as of December 31, 2024. This suggests that the company is taking longer to pay off its suppliers, potentially improving its cash flow position but also indicating a shorter credit period with suppliers.
Overall, the decreasing DSO and number of days of payables for Etsy Inc suggest a positive trend in managing receivables and payables efficiently, which can have implications for the company's working capital management and overall financial health.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 19.02 | 17.80 | 17.39 | 14.04 | 27.73 |
| Total asset turnover | 1.16 | 1.02 | 0.97 | 0.61 | 0.72 |
The Fixed Asset Turnover ratio measures how efficiently the company is utilizing its fixed assets to generate sales. In the case of Etsy Inc, the ratio has shown fluctuations over the years, starting at 27.73 in 2020 and decreasing to 14.04 in 2021, before gradually increasing to 19.02 in 2024. This indicates that Etsy is becoming more efficient in generating revenue from its fixed assets over time.
On the other hand, the Total Asset Turnover ratio reflects the company's ability to generate sales from its total assets. Etsy's Total Asset Turnover ratio started at 0.72 in 2020, dipped to 0.61 in 2021, and then notably increased to 1.16 in 2024. This trend indicates that Etsy has been able to significantly improve its efficiency in utilizing its total assets to drive sales growth.
Overall, the trend in both the Fixed Asset Turnover and Total Asset Turnover ratios suggests that Etsy Inc has been improving its asset utilization and efficiency in generating sales over the years, which is a positive sign for the company's long-term operational performance.