Etsy Inc (ETSY)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 4.89 | 6.11 | 4.47 | 4.87 |
| Quick ratio | 1.65 | 1.82 | 2.18 | 2.14 | 1.90 | 2.14 | 2.28 | 2.08 | 1.64 | 1.78 | 6.15 | 3.96 | 3.72 | 4.52 | 3.79 | 5.14 | 4.42 | 5.59 | 4.02 | 4.26 |
| 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 |
Etsy Inc's liquidity ratios have shown a consistent and strong performance over the quarters presented. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has remained above 2 in all quarters, indicating a healthy liquidity position. This suggests that Etsy has more than enough current assets to cover its current liabilities.
Similarly, the quick ratio, also known as the acid-test ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also reflects a strong liquidity position with ratios consistently above 2 in all quarters. This indicates that Etsy can meet its short-term obligations even after excluding inventory from its current assets.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents in relation to current liabilities, has also been above 2 throughout the quarters presented. This suggests that Etsy has a solid cash position relative to its current liabilities, providing a cushion to cover any sudden short-term financial needs.
Overall, based on the liquidity ratios analysis, Etsy Inc appears to have a robust liquidity position, with ample assets to cover its short-term obligations and maintain financial stability.
See also:
Etsy Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | -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 | -28.59 | -29.92 | -29.24 | -25.25 |
Etsy Inc's cash conversion cycle has shown a fluctuating trend over the past eight quarters. The company has managed to consistently keep its cash conversion cycle in negative territory, indicating efficient management of its working capital. In Q4 2023, Etsy achieved a cash conversion cycle of -9.89 days, which reflects that the company is able to convert its inventory into sales and then quickly collect payments from customers.
Comparing this to previous quarters, Q3 2023 had a slightly shorter cash conversion cycle of -3.86 days, while Q2 2023 and Q1 2023 also exhibited negative cash conversion cycles of -3.89 days and -5.82 days respectively. The trend in the last four quarters suggests that Etsy has been improving its efficiency in managing its working capital.
Looking back further, in Q4 2022, Etsy had a cash conversion cycle of -10.13 days, which was relatively longer compared to the recent quarters. However, the company was able to improve its working capital efficiency in Q3 2022 with a cycle of -5.24 days and continued to maintain negative cycles in Q2 2022 and Q1 2022 at -6.21 days and -5.19 days, respectively.
Overall, Etsy Inc's performance in managing its cash conversion cycle demonstrates effective inventory management, timely collection of receivables, and efficient payment of payables, which ultimately contributes to the company's liquidity and operational effectiveness.