Etsy Inc (ETSY)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables turnover	111.12	139.79	118.24	100.01	92.01	113.76	119.90	114.20	85.42	93.34	105.92	89.09	76.34	84.50	68.05	74.89	53.19	59.90	66.21	60.44
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
Working capital turnover	3.20	3.41	2.93	3.11	2.91	2.90	2.77	2.90	3.21	3.68	0.94	1.40	1.20	1.02	1.23	1.17	1.12	0.95	1.21	1.13

Etsy Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales and cash flow.

1. Receivables Turnover: The receivables turnover ratio measures how many times a company collects its accounts receivable during a period. Etsy's receivables turnover has been consistently high over the past eight quarters, indicating that the company efficiently collects payments from its customers. The increasing trend in receivables turnover suggests that Etsy has been improving its credit management and collection processes.

2. Payables Turnover: The payables turnover ratio measures how many times a company pays its suppliers during a period. The payables turnover for Etsy has shown a varying trend, but overall, the company has been making payments to suppliers more frequently compared to the past. This may indicate Etsy's efforts to maintain good relationships with suppliers by ensuring timely payments.

3. Working Capital Turnover: The working capital turnover ratio indicates how effectively a company utilizes its working capital to generate sales revenue. Etsy's working capital turnover has remained relatively stable over the quarters, indicating consistent efficiency in utilizing its working capital to support its operations and generate sales.

Overall, these activity ratios suggest that Etsy Inc is effectively managing its accounts receivable, payables, and working capital to support its business operations.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	3.28	2.61	3.09	3.65	3.97	3.21	3.04	3.20	4.27	3.91	3.45	4.10	4.78	4.32	5.36	4.87	6.86	6.09	5.51	6.04
Number of days of payables	days	13.18	6.47	6.98	9.47	14.10	8.45	9.26	8.39	15.62	8.18	17.35	11.39	32.11	19.95	16.49	12.81	35.45	36.01	34.76	31.29

Etsy Inc's activity ratios provide insights into the efficiency of the company's operations and management of its resources.

Days of inventory on hand (DOH) information is not available for the periods provided, indicating that the company may not monitor its inventory turnover on a daily basis or this data may not be disclosed.

Days of sales outstanding (DSO) decreased from 3.97 days in Q4 2022 to 3.28 days in Q4 2023, suggesting an improvement in collecting sales revenue from customers. This indicates that Etsy has been efficient in converting its accounts receivable into cash.

Number of days of payables increased from 14.10 days in Q4 2022 to 13.18 days in Q4 2023, meaning that the company is taking longer to pay its suppliers compared to the previous quarter. This can sometimes indicate liquidity constraints or changes in payment terms with suppliers.

Overall, the analysis of these activity ratios suggests that Etsy Inc has shown improvements in managing its accounts receivable turnover but has slightly increased the time it takes to pay its suppliers.

Long-term

	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
Fixed asset turnover	17.80	11.04	10.99	10.58	17.39	9.91	9.22	8.69	14.04	11.21	20.30	18.97	27.73	5.10	4.20	—	3.99	4.88	5.46	4.95
Total asset turnover	1.02	1.11	1.04	1.05	0.97	1.01	0.67	0.63	0.61	0.64	0.65	0.82	0.72	0.62	0.64	0.58	0.53	0.50	0.69	0.66

Etsy Inc's fixed asset turnover ratio has been on an upward trend, increasing from 8.69 in Q1 2022 to 11.00 in Q4 2023. This indicates that the company is generating more revenue from its fixed assets over time, reflecting efficient utilization of these assets to generate sales.

In comparison, the total asset turnover ratio has shown some fluctuation but generally remains stable and above 1, indicating that Etsy is effectively utilizing its total assets to generate sales.

Overall, the upward trend in fixed asset turnover and the stable total asset turnover suggest that Etsy is efficiently managing its long-term assets to drive revenue growth and maximize productivity.