Etsy Inc (ETSY)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	914,323	741,958	841,512	786,796	921,278	789,990	758,874	756,237	780,196	619,402	2,053,880	1,163,680	1,244,100	1,144,970	677,524	442,354	443,293	671,769	359,159	345,674
Short-term investments	US$ in thousands	236,118	234,930	235,263	252,666	250,413	251,165	247,816	225,983	204,416	197,430	430,727	502,569	425,119	379,586	365,659	361,640	373,959	180,170	300,111	276,432
Total current liabilities	US$ in thousands	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	188,528	154,707	166,510	148,675
Cash ratio		1.62	1.78	2.14	2.08	1.85	2.09	2.24	2.03	1.60	1.73	6.10	3.90	3.67	4.47	3.73	5.06	4.33	5.51	3.96	4.18

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($914,323K + $236,118K) ÷ $710,781K
= 1.62

The cash ratio measures a company's ability to cover its short-term obligations with its readily available cash and cash equivalents. Etsy Inc's cash ratio has shown a decreasing trend over the quarters, starting at 2.64 in Q1 2022 and dropping to 2.17 in Q4 2023. This indicates a decline in the company's ability to meet its short-term liabilities solely with its cash reserves.

Despite the decrease, Etsy Inc's cash ratio remains above 1, indicating that the company has sufficient cash on hand to cover its short-term obligations. It is important to monitor the trend of the cash ratio over time to assess the company's liquidity position and financial health.