Etsy Inc (ETSY)

Receivables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,808,332	2,798,492	2,772,384	2,753,454	2,748,377	2,713,296	2,671,463	2,627,722	2,566,111	2,476,009	2,413,969	2,357,734	2,329,114	2,229,330	2,148,379	2,048,216	1,725,625	1,378,268	1,124,737	877,095
Receivables	US$ in thousands	8,702	8,644	10,324	16,542	24,734	19,410	22,594	26,274	27,888	21,765	20,133	20,645	27,266	23,884	20,283	22,991	22,605	16,311	16,527	11,712
Receivables turnover		322.72	323.75	268.54	166.45	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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,808,332K ÷ $8,702K
= 322.72

The receivables turnover ratio is a measure of how many times a company collects its average accounts receivable balance during a specific period. A higher receivables turnover indicates that a company effectively collects payments from its customers.

Analyzing the receivables turnover of Etsy Inc based on the provided data reveals a fluctuating trend over the quarters. The ratio started at 74.89 as of March 31, 2020, increased to 119.90 by June 30, 2022, and peaked at 323.75 on September 30, 2024. This substantial increase in 2024 may indicate a more efficient collection process and stricter credit policies, leading to faster turnover of receivables.

However, it is essential to note that a very high receivables turnover ratio could also signify an overly aggressive credit policy, potentially leading to missed sales opportunities. Therefore, although the recent increase in the receivables turnover ratio for Etsy Inc is a positive indicator, it should be monitored to ensure it is sustainable and in line with the company's overall financial objectives.