Etsy Inc (ETSY)
Total asset 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 |
| Total assets | US$ in thousands | 2,685,400 | 2,634,960 | 3,831,810 | 2,404,490 | 1,542,350 |
| Total asset turnover | 1.02 | 0.97 | 0.61 | 0.72 | 0.53 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,748,380K ÷ $2,685,400K
= 1.02
Etsy Inc's total asset turnover ratio has shown an increasing trend over the past five years, indicating an improvement in the efficiency of utilizing its assets to generate sales. The ratio has steadily increased from 0.53 in 2019 to 1.02 in 2023.
A total asset turnover ratio of 1.02 in 2023 implies that Etsy Inc generated $1.02 in sales for every dollar of total assets during that year. This indicates that the company efficiently utilized its assets to generate revenue.
The rising trend in total asset turnover suggests that Etsy Inc has been able to increase its sales relative to its asset base, which may be attributed to effective management of inventory, receivables, and other assets. This improvement bodes well for the company's financial performance and highlights an efficient use of resources in generating revenue.
Peer comparison
Dec 31, 2023