Etsy Inc (ETSY)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,748,380	2,566,110	2,329,110	1,725,620	818,379
Property, plant and equipment	US$ in thousands	154,413	147,575	165,931	62,234	205,252
Fixed asset turnover		17.80	17.39	14.04	27.73	3.99

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,748,380K ÷ $154,413K
= 17.80

The fixed asset turnover ratio for Etsy Inc has shown fluctuation over the past five years. In 2023, the ratio stands at 11.00, indicating that the company generated $11 in sales for every $1 invested in fixed assets during the year. This represents an increase from the previous year's ratio of 10.27. Looking further back, the ratio has been on an upward trend since 2019 when it was at 5.65, peaking in 2020 at 15.34 before declining slightly in 2022 and then rebounding in 2023.

The increase in fixed asset turnover ratio from 2022 to 2023 suggests that Etsy Inc has become more efficient in utilizing its fixed assets to generate revenue. A higher turnover ratio indicates that the company is able to generate more sales from its fixed assets, which is a positive sign of operational efficiency. However, it is important to note that a very high turnover ratio could also indicate that the company may be underinvesting in fixed assets, which could potentially impact its long-term growth and competitiveness.

Overall, the trend in Etsy Inc's fixed asset turnover ratio indicates improved efficiency in utilizing its fixed assets over the years, although careful consideration should be given to ensure the company maintains an optimal level of investment in fixed assets to support its growth objectives.