Etsy Inc (ETSY)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,808,330	2,748,380	2,566,110	2,329,110	1,725,620
Receivables	US$ in thousands	8,702	24,734	27,888	27,266	22,605
Receivables turnover		322.72	111.12	92.01	85.42	76.34

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,808,330K ÷ $8,702K
= 322.72

The receivables turnover for Etsy Inc has steadily increased over the past five years, reflecting the company's efficiency in collecting outstanding receivables from its customers. The ratio, which stood at 76.34 on December 31, 2020, notably improved to 322.72 by the end of December 31, 2024. This indicates that Etsy has been able to collect payments from customers more frequently within a given time period.

The upward trend in the receivables turnover ratio suggests that the company has been managing its accounts receivable effectively, potentially reducing the risk of bad debts and improving its overall liquidity position. A higher receivables turnover ratio typically indicates that the company is efficiently managing its credit sales and collection processes.

Etsy's ability to swiftly convert its receivables into cash is a positive sign for its financial health and operational efficiency. However, it is important to monitor this ratio over time to ensure that the increase is sustainable and does not result from overly aggressive collection practices that may impact customer relationships.