Etsy Inc (ETSY)

Working capital 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 current assets	US$ in thousands	1,570,450	1,513,740	1,341,500	1,894,780	921,038
Total current liabilities	US$ in thousands	710,781	631,755	615,588	454,664	188,528
Working capital turnover		3.20	2.91	3.21	1.20	1.12

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,748,380K ÷ ($1,570,450K – $710,781K)
= 3.20

Etsy Inc's working capital turnover has shown variability over the past five years. The company's working capital turnover ratio was 3.20 in 2023, indicating that for every dollar of working capital invested, the company generated $3.20 in revenue. This represents an improvement from 2022 when the ratio was 2.91.

Comparing to previous years, Etsy's working capital turnover was highest in 2021 at 3.21, suggesting efficient utilization of working capital to drive sales. This was a significant improvement from 2020 and 2019 when the ratios were 1.20 and 1.12 respectively, indicating a less efficient use of working capital.

Overall, the fluctuation in Etsy's working capital turnover ratio over the years may indicate changes in the company's efficiency in managing its working capital to generate sales revenue. It is crucial for the company to consistently monitor and optimize its working capital turnover to ensure optimal financial performance.