Etsy Inc (ETSY)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	811,178	914,323	921,278	780,196	1,244,100
Short-term investments	US$ in thousands	228,322	236,118	250,413	204,416	425,119
Total current liabilities	US$ in thousands	665,113	710,781	631,755	615,588	454,664
Cash ratio		1.56	1.62	1.85	1.60	3.67

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($811,178K + $228,322K) ÷ $665,113K
= 1.56

The cash ratio of Etsy Inc has been fluctuating over the years. As of December 31, 2020, the cash ratio was 3.67, indicating that the company had $3.67 in cash and cash equivalents for every dollar of current liabilities. However, by December 31, 2021, the cash ratio decreased to 1.60, suggesting a decrease in the company's ability to cover its short-term obligations with cash on hand.

In the following years, the cash ratio improved slightly to 1.85 as of December 31, 2022, but then declined again to 1.62 by December 31, 2023, and further to 1.56 by December 31, 2024. These values indicate that Etsy Inc may be facing some challenges in maintaining a high level of liquidity to cover its short-term obligations.

Overall, the trend in the cash ratio reflects fluctuations in Etsy Inc's liquidity position, with the company having varying levels of cash and cash equivalents relative to its current liabilities over the years. It is important for investors and stakeholders to closely monitor these changes in the cash ratio to assess the company's liquidity risk and financial health.