Etsy Inc (ETSY)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	1.13	1.13	1.36	2.19	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
Number of days of payables	days	12.24	8.80	5.85	4.51	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
Cash conversion cycle	days	-11.11	-7.67	-4.49	-2.32	-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

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 1.13 – 12.24
= -11.11

The cash conversion cycle for Etsy Inc has shown fluctuations over the analyzed period. The company's cash conversion cycle has predominantly been negative, indicating efficient management of cash flow from operations.

From March 31, 2020, to June 30, 2021, the cash conversion cycle experienced variations but mostly remained negative, implying Etsy Inc was able to generate cash quickly from its sales and efficiently manage its working capital.

However, from March 31, 2021, to December 31, 2024, the cash conversion cycle fluctuated between -2.32 days and -11.11 days. These fluctuations could be due to changes in the company's operational efficiency, payment terms with suppliers, or inventory management.

Overall, a negative cash conversion cycle suggests that Etsy Inc is able to collect cash from customers faster than paying its suppliers, indicating effective working capital management. Investors and analysts should monitor these trends in the cash conversion cycle to assess the company's operational efficiency and cash flow management capabilities.