Etsy Inc (ETSY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 69.85% | 70.98% | 71.90% | 73.07% | 66.88% |
| Operating profit margin | 10.18% | -25.66% | 20.00% | 24.57% | 10.85% |
| Pretax margin | 10.65% | -25.80% | 20.25% | 21.19% | 9.85% |
| Net profit margin | 11.19% | -27.06% | 21.19% | 20.24% | 11.72% |
Etsy Inc's profitability ratios show some fluctuations over the past five years. The gross profit margin has ranged from 66.88% in 2019 to 71.90% in 2021, indicating the company's ability to generate profit from its core operations. However, there was a slight decrease in 2023 to 69.85%.
The operating profit margin has shown variability, with a high of 24.57% in 2020 and a low of 10.85% in 2019. This ratio reflects the company's efficiency in managing its operating expenses to generate profit. The decrease in 2023 to 12.66% may indicate higher operating costs relative to revenue.
The pretax margin has also fluctuated, with a significant negative value in 2022 at -25.80%, which may be due to exceptional expenses or losses during that year. The improvement in 2023 to 10.65% suggests a better financial performance before taxes.
The net profit margin, which represents the company's bottom-line profit after all expenses have been deducted, has varied between 11.72% in 2019 and -27.06% in 2022. The positive net profit margins in the other years indicate Etsy's ability to effectively manage costs and generate profit for its shareholders. However, the drop to 11.19% in 2023 may warrant further investigation into the factors impacting the company's profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.42% | -24.99% | 12.15% | 17.63% | 5.75% |
| Return on assets (ROA) | 11.45% | -26.35% | 12.88% | 14.52% | 6.22% |
| Return on total capital | — | — | 76.60% | 54.92% | 25.81% |
| Return on equity (ROE) | — | — | 78.51% | 47.04% | 23.58% |
Etsy Inc's profitability ratios show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has been relatively stable, ranging from 5.75% in 2019 to 14.67% in 2022. The ratio decreased to 12.96% in 2023, indicating a slight decline in the company's ability to generate operating income from its assets.
2. Return on assets (ROA) fluctuated significantly, with a negative value of -26.35% in 2022, which indicates that the company incurred a loss for that year. However, in other years, ROA ranged from 6.22% to 14.52%, reflecting varying levels of profitability relative to the total assets.
3. Return on total capital has shown a general upward trend, with values ranging from 7.08% in 2019 to 22.82% in 2020. The ratio decreased to 18.85% in 2023, suggesting a decrease in return generated from the company's total invested capital.
4. The return on equity (ROE) exhibited a significant improvement from 23.58% in 2019 to 78.51% in 2021, showing that the company efficiently generated profits in relation to shareholders' equity. However, data for 2020 and 2022 are unavailable for ROE, which makes it difficult to analyze the trend over these years.
Overall, Etsy Inc's profitability ratios reflect varying levels of performance over the past five years, with a notable improvement in some ratios and fluctuations in others. Investors may need to further delve into the reasons behind these fluctuations to assess the company's profitability and financial health accurately.