Etsy Inc (ETSY)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Receivables turnover		322.72	323.75	268.54	166.45	111.12	139.79	118.24	100.01	92.01	113.76	119.90	114.20	85.42	93.34	105.92	89.09	76.34	84.50	68.05	74.89
DSO	days	1.13	1.13	1.36	2.19	3.28	2.61	3.09	3.65	3.97	3.21	3.04	3.20	4.27	3.91	3.45	4.10	4.78	4.32	5.36	4.87

December 31, 2024 calculation

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

The Days Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect payment after a sale has been made. Lower DSO values indicate that a company is collecting payments more quickly, which can be a positive sign of efficient cash flow management.

Analyzing the DSO trend of Etsy Inc over the periods provided, we can observe a consistent decrease in DSO from March 31, 2020, to December 31, 2024. The DSO dropped from 4.87 days on March 31, 2020, to 1.13 days on December 31, 2024. This decreasing trend suggests that Etsy Inc has been effectively managing its accounts receivable and collecting payments more promptly over time.

The reduction in DSO indicates that Etsy Inc has been improving its collection efficiency and cash flow management. A lower DSO implies that the company is converting its credit sales into cash more quickly, which is a positive indicator of liquidity and financial health.

Overall, the declining trend in DSO for Etsy Inc reflects strong receivables management practices, implying that the company has been successfully streamlining its collection processes and maintaining healthy cash flows.