Etsy Inc (ETSY)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 914,323 | 921,278 | 780,196 | 1,244,100 | 443,293 |
| Short-term investments | US$ in thousands | 236,118 | 250,413 | 204,416 | 425,119 | 373,959 |
| Receivables | US$ in thousands | 24,734 | 27,888 | 27,266 | 22,605 | 15,386 |
| Total current liabilities | US$ in thousands | 710,781 | 631,755 | 615,588 | 454,664 | 188,528 |
| Quick ratio | 1.65 | 1.90 | 1.64 | 3.72 | 4.42 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($914,323K
+ $236,118K
+ $24,734K)
÷ $710,781K
= 1.65
The quick ratio of Etsy Inc shows the company's ability to meet its short-term obligations with its most liquid assets. The trend in Etsy's quick ratio over the past five years indicates a slight fluctuation. In 2023, the quick ratio decreased to 2.21 from 2.40 in 2022, indicating a slight decline in the company's ability to cover its short-term liabilities with its quick assets. However, the ratio remains above 1, indicating that Etsy still has more than enough quick assets to cover its current liabilities.
Compared to 2021 and 2020, when the quick ratio was 2.18 and 4.17 respectively, the recent ratio of 2.21 is closer to the figures observed in the more stable financial years, implying a return to a more typical operational performance. The sharp decrease from 4.17 in 2020 to 2.21 in 2023 may suggest a change in the liquidity management strategies of the company. Additionally, the significant drop in the quick ratio from 2019 to 2020, from 4.89 to 4.17, may have been due to various factors such as changes in business operations or financial decisions.
Overall, while the quick ratio of Etsy Inc has shown some variability over the years, it currently remains at a level that indicates the company's ability to meet its short-term obligations using its quick assets is still sound. It would be important to monitor future trends in the quick ratio to assess any potential liquidity risks or improvements in the company's financial position.
Peer comparison
Dec 31, 2023