Etsy Inc (ETSY)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,808,330	2,748,380	2,566,110	2,329,110	1,725,620
Total current assets	US$ in thousands	1,327,690	1,570,450	1,513,740	1,341,500	1,894,780
Total current liabilities	US$ in thousands	665,113	710,781	631,755	615,588	454,664
Working capital turnover		4.24	3.20	2.91	3.21	1.20

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,808,330K ÷ ($1,327,690K – $665,113K)
= 4.24

Based on the data provided for Etsy Inc's working capital turnover from December 31, 2020, to December 31, 2024, we observe a fluctuating trend in the ratio. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue.

Etsy Inc's working capital turnover has shown an improving trend over the years, starting at 1.20 in 2020 and steadily increasing to 4.24 by the end of 2024. This indicates that the company has been able to generate more sales revenue relative to its working capital invested, reflecting a positive operational efficiency.

The increase in the working capital turnover ratio from 2020 to 2024 suggests that Etsy Inc has been able to enhance its management of working capital, potentially through more effective inventory management, accounts receivable collection, and accounts payable strategies.

Overall, the increasing trend in Etsy Inc's working capital turnover ratio signifies improved efficiency in utilizing working capital to drive sales growth, reflecting positively on the company's operational performance over the analyzed period.