Etsy Inc (ETSY)

Working capital 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
Total current assets	US$ in thousands	1,327,690	1,320,680	1,359,010	1,404,420	1,570,450	1,343,860	1,413,760	1,344,950	1,513,740	1,352,110	1,320,220	1,295,140	1,341,500	1,077,330	2,690,980	1,893,620	1,894,780	1,697,830	1,194,340	906,952
Total current liabilities	US$ in thousands	665,113	552,960	564,485	565,121	710,781	548,817	503,219	499,113	631,755	497,246	449,902	483,205	615,588	471,007	407,000	427,045	454,664	340,942	279,579	158,849
Working capital turnover		4.24	3.65	3.49	3.28	3.20	3.41	2.93	3.11	2.91	2.90	2.77	2.90	3.21	3.68	0.94	1.40	1.20	1.02	1.23	1.17

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,808,332K ÷ ($1,327,690K – $665,113K)
= 4.24

The working capital turnover ratio for Etsy Inc has shown fluctuating trends over the period provided. The ratio started at 1.17 in March 2020, increased to 1.40 by March 2021, dropped to 0.94 by June 2021, and then exhibited significant improvement, reaching 4.24 by December 2024.

The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio typically reflects better efficiency in managing working capital. Etsy Inc's increasing trend in the working capital turnover ratio suggests that the company has been more efficient in utilizing its working capital to generate sales over the years. This improvement indicates that the company is effectively managing its current assets and liabilities to support its operations and drive revenue growth.

Overall, the upward trend in the working capital turnover ratio for Etsy Inc from 2020 to 2024 indicates a positive performance in terms of working capital management and revenue generation. Investors and stakeholders may view this trend favorably as it indicates improved efficiency in utilizing the company's resources to drive business operations.