Etsy Inc (ETSY)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,748,380	2,566,110	2,329,110	1,725,620	818,379
Receivables	US$ in thousands	24,734	27,888	27,266	22,605	15,386
Receivables turnover		111.12	92.01	85.42	76.34	53.19

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,748,380K ÷ $24,734K
= 111.12

Etsy Inc's receivables turnover has been steadily increasing over the past five years, indicating an improvement in the company's efficiency in collecting payments from its customers. The ratio has shown a positive trend, with a significant jump from 53.19 in 2019 to 111.12 in 2023. This demonstrates that Etsy has been able to convert its accounts receivable into cash more frequently in recent years.

The increasing receivables turnover suggests that Etsy has been managing its credit sales effectively and has been successful in collecting payments from customers in a timely manner. This is a positive sign for the company's liquidity and financial health, as a higher turnover ratio indicates that the company can quickly convert credit sales into cash, reducing the risk of bad debts and improving cash flow.

Overall, the upward trend in Etsy's receivables turnover reflects efficient credit management practices and a healthy financial position, indicating that the company is effectively managing its receivables and maintaining strong relationships with its customers.