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.
Peer comparison
Dec 31, 2023