Etsy Inc (ETSY)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	774,554	828,675	744,592	654,512	464,745
Payables	US$ in thousands	25,979	29,920	28,757	28,007	40,883
Payables turnover		29.81	27.70	25.89	23.37	11.37

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $774,554K ÷ $25,979K
= 29.81

The payables turnover ratio for Etsy Inc has been steadily increasing over the years, indicating an improvement in the company's efficiency in managing its accounts payable.

In 2020, the payables turnover ratio was 11.37, which means that Etsy Inc turned over its accounts payable approximately 11.37 times during the year.

By the end of 2021, the ratio had increased to 23.37, showing a significant improvement in the company's ability to pay off its suppliers more frequently.

This positive trend continued in the following years, with the payables turnover ratio reaching 25.89 in 2022, 27.70 in 2023, and 29.81 in 2024.

A higher payables turnover ratio indicates that a company is managing its payables more efficiently, which can lead to better relationships with suppliers and improved cash flow management. Overall, the increasing trend in Etsy Inc's payables turnover ratio reflects positively on the company's financial health and operational effectiveness.