Etsy Inc (ETSY)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	271,036	237,323	215,321	202,125
Payables	US$ in thousands	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	26,324	23,416	20,504	17,325
Payables turnover		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	10.30	10.14	10.50	11.67

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $828,675K ÷ $29,920K
= 27.70

Etsy Inc's payables turnover ratio indicates the efficiency with which the company pays its suppliers or vendors. A higher payables turnover ratio typically suggests that the company is effectively managing its accounts payable by paying them off quickly.

Based on the data provided, there is a fluctuation in Etsy's payables turnover ratio over the quarters. In Q4 2023, the payables turnover ratio was 27.70, which was lower compared to the previous quarter but higher than the same quarter in the previous year. This could imply that Etsy took longer to pay off its payables in Q4 2023 compared to the immediate preceding quarter but was still more efficient in managing payables than in Q4 2022.

In Q3 2023, the payables turnover ratio spiked significantly to 56.44, indicating a substantial improvement in the management of accounts payables compared to the previous quarters. However, this high ratio could also indicate a potential risk of suppliers being paid too quickly, potentially impacting cash flow management.

Overall, the trend in Etsy Inc's payables turnover suggests some variability in the company's ability to manage its accounts payable efficiently. Analyzing the reasons behind these fluctuations and understanding its implications on the company's financial health and working capital management would be crucial for investors and stakeholders.