Etsy Inc (ETSY)

Current ratio

		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
Total current assets	US$ in thousands	1,327,690	1,320,680	1,359,010	1,404,420	1,570,450	1,343,860	1,413,760	1,344,950	1,513,740	1,352,110	1,320,220	1,295,140	1,341,500	1,077,330	2,690,980	1,893,620	1,894,780	1,697,830	1,194,340	906,952
Total current liabilities	US$ in thousands	665,113	552,960	564,485	565,121	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
Current ratio		2.00	2.39	2.41	2.49	2.21	2.45	2.81	2.69	2.40	2.72	2.93	2.68	2.18	2.29	6.61	4.43	4.17	4.98	4.27	5.71

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,327,690K ÷ $665,113K
= 2.00

Etsy Inc's current ratio, which measures the company's ability to pay its short-term obligations with its current assets, has shown some fluctuations over the reporting periods provided.

The current ratio ranged from a high of 6.61 as of June 30, 2021, to a low of 2.00 as of December 31, 2024. Generally, a current ratio above 1 indicates that a company has more current assets than current liabilities, suggesting it has the resources to meet its short-term financial obligations.

However, it is important to note that a higher current ratio does not always indicate financial strength, as an excessively high ratio may imply inefficiency in asset management. Conversely, a lower ratio may signal liquidity concerns and the potential inability to meet short-term obligations.

Etsy's current ratio trend indicates fluctuations, which may be influenced by changes in the company's working capital management, inventory levels, or borrowing activities. Further analysis of the underlying reasons for the fluctuations in the current ratio would provide a more comprehensive understanding of Etsy Inc's liquidity position and financial health.