Etsy Inc (ETSY)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	3.28	2.61	3.09	3.65	3.97	3.21	3.04	3.20	4.27	3.91	3.45	4.10	4.78	4.32	5.36	4.87	6.86	6.09	5.51	6.04
Number of days of payables	days	13.18	6.47	6.98	9.47	14.10	8.45	9.26	8.39	15.62	8.18	17.35	11.39	32.11	19.95	16.49	12.81	35.45	36.01	34.76	31.29
Cash conversion cycle	days	-9.89	-3.86	-3.89	-5.82	-10.13	-5.24	-6.21	-5.19	-11.35	-4.27	-13.90	-7.29	-27.33	-15.64	-11.13	-7.94	-28.59	-29.92	-29.24	-25.25

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 3.28 – 13.18
= -9.89

The cash conversion cycle of Etsy Inc has fluctuated over the past eight quarters, with values ranging from -10.13 days to -3.86 days. A negative cash conversion cycle indicates that the company is efficiently managing its working capital.

In Q4 2023, the cash conversion cycle was -9.89 days, a slight increase from the previous quarter's value of -3.86 days. This indicates that Etsy Inc took slightly longer to convert its investments in inventory and accounts receivable into cash during the fourth quarter.

Overall, the trend shows that Etsy Inc has generally maintained a negative cash conversion cycle, which suggests effective management of inventory and receivables to generate cash quickly. However, the fluctuations observed in the values indicate some variability in the efficiency of the company's working capital management over the analyzed period.