Etsy Inc (ETSY)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 828,675 | 744,592 | 654,512 | 464,745 | 271,036 |
| Payables | US$ in thousands | 29,920 | 28,757 | 28,007 | 40,883 | 26,324 |
| Payables turnover | 27.70 | 25.89 | 23.37 | 11.37 | 10.30 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $828,675K ÷ $29,920K
= 27.70
The payables turnover ratio for Etsy Inc has shown a consistent increasing trend over the past five years. Starting at 10.30 in 2019, the ratio has steadily climbed to 27.70 in 2023. This indicates that Etsy has been able to manage its accounts payable more efficiently over the years, with a higher turnover of payables.
A high payables turnover ratio suggests that Etsy is paying off its suppliers quickly, which can be a positive sign as it may indicate strong supplier relationships and potentially favorable credit terms. This can also signify effective working capital management and cash flow optimization within the company.
Overall, the increasing trend in the payables turnover ratio for Etsy Inc reflects improving efficiency in managing its accounts payable and underscores the company's ability to meet its obligations in a timely manner.
Peer comparison
Dec 31, 2023