Etsy Inc (ETSY)

Quick ratio

		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	US$ in thousands	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	443,293	671,769	359,159	345,674
Short-term investments	US$ in thousands	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	373,959	180,170	300,111	276,432
Receivables	US$ in thousands	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	15,386	12,494	10,585	10,789
Total current liabilities	US$ in thousands	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	188,528	154,707	166,510	148,675
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

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 has been relatively stable over the past eight quarters, ranging from 2.21 to 2.93. This indicates that the company has consistently maintained a strong ability to cover its short-term obligations with its most liquid assets. A quick ratio above 1.0 is generally considered healthy, as it implies that the company has enough liquid assets to cover its current liabilities.

The decreasing trend observed in the quick ratio from Q2 2022 (2.93) to Q3 2023 (2.45) and Q4 2023 (2.21) may raise some concerns about Etsy's short-term liquidity position. However, it is important to note that these ratios are still well above 1.0, suggesting that Etsy Inc remains well-positioned to meet its short-term obligations.

Overall, the consistent quick ratio above 2.0 signifies that Etsy Inc has a strong liquidity position and the ability to meet its short-term financial commitments with ease. This provides a sense of stability and financial health for the company in the near term.