Etsy Inc (ETSY)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,570,450	1,513,740	1,341,500	1,894,780	921,038
Total current liabilities	US$ in thousands	710,781	631,755	615,588	454,664	188,528
Current ratio		2.21	2.40	2.18	4.17	4.89

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,570,450K ÷ $710,781K
= 2.21

The current ratio of Etsy Inc has shown some fluctuations over the past five years. As of December 31, 2023, the current ratio stands at 2.21, a decrease from the previous year's ratio of 2.40. This indicates that the company's current assets may have decreased relative to its current liabilities compared to the prior year.

Looking back, in 2021, the current ratio was 2.18, showing a slight improvement from the year before, but still lower than the ratio in 2020, which was relatively high at 4.17. The current ratio was even higher in 2019 at 4.89, indicating a stronger ability to cover short-term obligations with current assets.

Overall, while the current ratio of Etsy Inc has fluctuated in recent years, it remains above 1, which suggests that the company has more than enough current assets to cover its current liabilities. However, the decreasing trend in the current ratio over the past two years may indicate a need for closer monitoring of the company's liquidity position.