Etsy Inc (ETSY)

Quick 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
Cash	US$ in thousands	811,178	818,939	759,211	788,837	914,323	741,958	841,512	786,796	921,278	789,990	758,874	756,237	780,196	619,402	2,053,880	1,163,680	1,244,100	1,144,970	677,524	442,354
Short-term investments	US$ in thousands	228,322	226,022	240,679	254,875	236,118	234,930	235,263	252,666	250,413	251,165	247,816	225,983	204,416	197,430	430,727	502,569	425,119	379,586	365,659	361,640
Receivables	US$ in thousands	8,702	8,644	10,324	16,542	24,734	19,410	22,594	26,274	27,888	21,765	20,133	20,645	27,266	23,884	20,283	22,991	22,605	16,311	16,527	11,712
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
Quick ratio		1.58	1.91	1.79	1.88	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

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, which measures the company's ability to cover its short-term obligations with its most liquid assets, has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The quick ratio started at a high of 5.14 on March 31, 2020, indicating a strong ability to meet short-term obligations without relying on inventory.

Subsequently, the quick ratio decreased but remained relatively healthy, ranging between 1.64 and 6.15 over the following quarters. It hit a low of 1.58 on December 31, 2024. These fluctuations suggest potential changes in the company's liquidity position and its ability to quickly convert assets into cash to meet obligations.

Overall, the quick ratio of Etsy Inc has shown variability over the period, with the company's ability to cover short-term liabilities with quick assets fluctuating between strong and moderate levels. Continued monitoring of the quick ratio and underlying factors affecting liquidity will be important for assessing the company's short-term financial health and liquidity position.