Etsy Inc (ETSY)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		322.72	111.12	92.01	85.42	76.34
DSO	days	1.13	3.28	3.97	4.27	4.78

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 322.72
= 1.13

Etsy Inc's Days of Sales Outstanding (DSO) has shown a decreasing trend over the past five years, indicating an improvement in the company's accounts receivable management.

As of December 31, 2020, the DSO was 4.78 days, which decreased to 4.27 days by December 31, 2021. The downward trend continued with further reductions to 3.97 days by December 31, 2022, 3.28 days by December 31, 2023, and a substantial decrease to just 1.13 days by December 31, 2024.

This indicates that Etsy Inc has been able to collect its outstanding sales revenue more quickly over the years, reflecting efficient credit management and timely collection of receivables. The downward trend in DSO suggests that the company has been successful in optimizing its working capital and improving its cash flows.