Etsy Inc (ETSY)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 1.13 | 3.28 | 3.97 | 4.27 | 4.78 |
| Number of days of payables | days | 12.24 | 13.18 | 14.10 | 15.62 | 32.11 |
| Cash conversion cycle | days | -11.11 | -9.89 | -10.13 | -11.35 | -27.33 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 1.13 – 12.24
= -11.11
The cash conversion cycle of Etsy Inc has shown a consistent improvement over the past five years, decreasing from -27.33 days as of December 31, 2020, to -11.11 days by December 31, 2024. A negative cash conversion cycle indicates that the company is able to convert inventory into cash quickly, improving its liquidity position. This trend suggests that Etsy has been managing its working capital efficiently, with a faster turnover of inventory and accounts receivable, leading to a shorter cash conversion cycle. This efficiency in managing its operating cycle may result in reduced financing needs and improved cash flow generation for the company.
Peer comparison
Dec 31, 2024