Etsy Inc (ETSY)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	774,554	812,620	815,807	820,355	828,675	798,693	784,267	767,050	744,592	727,783	707,042	684,590	654,512	596,326	562,834	525,246	464,745	404,789	353,570	300,794
Payables	US$ in thousands	25,979	19,589	13,070	10,132	29,920	14,150	14,997	19,901	28,757	16,841	17,929	15,734	28,007	13,367	26,752	16,386	40,883	22,130	15,978	10,557
Payables turnover		29.81	41.48	62.42	80.97	27.70	56.44	52.29	38.54	25.89	43.21	39.44	43.51	23.37	44.61	21.04	32.05	11.37	18.29	22.13	28.49

December 31, 2024 calculation

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

Based on the payables turnover data provided for Etsy Inc, we observe fluctuations in the efficiency of the company in managing its accounts payable over time. Payables turnover measures how quickly a company pays its suppliers. A higher turnover ratio indicates that the company is paying its suppliers more quickly.

Etsy Inc's payables turnover ratio ranged from 11.37 to 80.97 during the period from March 31, 2020, to December 31, 2024. The lowest ratio was reported on December 31, 2020, indicating a slower rate of paying suppliers, while the highest ratio was reported on March 31, 2024, indicating a significantly faster rate of paying suppliers.

Overall, there have been fluctuations in the payables turnover ratio over the period, suggesting changes in the company's payment practices and relationships with suppliers. A consistently low ratio may indicate that the company is taking too long to pay its suppliers, potentially straining supplier relationships. Conversely, a consistently high ratio could suggest aggressive payment terms or effective management of accounts payable.

It is important for investors and stakeholders to monitor payables turnover ratios to assess the company's liquidity, supplier relationships, and overall financial health. Further analysis and comparison with industry benchmarks could provide additional insights into Etsy Inc's payables management efficiency.