Etsy Inc (ETSY)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	8,702	24,734	27,888	27,266	22,605
Total current liabilities	US$ in thousands	665,113	710,781	631,755	615,588	454,664
Quick ratio		1.58	1.65	1.90	1.64	3.72

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($811,178K + $228,322K + $8,702K) ÷ $665,113K
= 1.58

The quick ratio of Etsy Inc, a measure of its short-term liquidity position, has shown a declining trend over the years. In December 2020, the quick ratio was strong at 3.72, indicating the company had $3.72 in liquid assets readily available to cover each $1 of current liabilities. However, by December 2024, the quick ratio had decreased to 1.58, suggesting a lower level of liquidity. Despite this decline, the quick ratio remains above 1 in all years, indicating that Etsy Inc still has sufficient liquid assets to meet its short-term obligations. It is important for investors and stakeholders to monitor this trend to ensure the company maintains a healthy liquidity position to weather any potential short-term financial challenges.