Etsy Inc (ETSY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 72.42% | 69.85% | 70.98% | 71.90% | 73.07% |
| Operating profit margin | 13.54% | 10.18% | -25.66% | 20.00% | 24.57% |
| Pretax margin | 14.63% | 10.65% | -25.80% | 20.25% | 21.19% |
| Net profit margin | 10.80% | 11.19% | -27.06% | 21.19% | 20.24% |
Etsy Inc's profitability ratios show fluctuations over the years analyzed. The gross profit margin, representing the percentage of revenue remaining after deducting the cost of goods sold, decreased slightly from 73.07% in 2020 to 69.85% in 2023 before increasing to 72.42% in 2024.
The operating profit margin, which indicates the proportion of revenue left after deducting operating expenses, experienced significant variability. It declined from 24.57% in 2020 to -25.66% in 2022, indicating a loss, before rebounding to 13.54% in 2024.
The pretax margin, highlighting the percentage of revenue remaining after including all expenses except taxes, mirrored the trends in operating profit margin. It dropped from 21.19% in 2020 to -25.80% in 2022, followed by a recovery to 14.63% in 2024.
The net profit margin, reflective of the company's overall profitability after all expenses, displayed similar patterns to the pretax margin. It decreased from 20.24% in 2020 to -27.06% in 2022, indicating a net loss, then improved to 10.80% in 2024.
Overall, Etsy Inc's profitability ratios showcase a mix of positive and negative trends, indicating fluctuations in profitability and operational efficiency over the period analyzed.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.73% | 10.42% | -24.99% | 12.15% | 17.63% |
| Return on assets (ROA) | 12.54% | 11.45% | -26.35% | 12.88% | 14.52% |
| Return on total capital | — | — | — | 76.60% | 54.92% |
| Return on equity (ROE) | — | — | — | 78.51% | 47.04% |
Based on the provided data, we can analyze the profitability ratios of Etsy Inc as follows:
1. Operating Return on Assets (Operating ROA):
- In 2020, Etsy Inc had an Operating ROA of 17.63%, indicating that for every dollar of assets, the company generated a profit of 17.63 cents from its core operations.
- The Operating ROA decreased to 12.15% in 2021, showing a decline in the company's operational efficiency in generating profits from its assets.
- However, in 2023, the Operating ROA improved to 10.42%, suggesting that the company was able to enhance its operational performance in utilizing its assets effectively.
2. Return on Assets (ROA):
- The ROA for Etsy Inc was 14.52% in 2020, indicating that the company generated a profit of 14.52 cents for every dollar of assets it owned.
- The ROA decreased to 12.88% in 2021 and further dropped to -26.35% in 2022, implying that the company may have faced challenges in generating profits from its total assets during these years.
- However, in 2024, the ROA recovered to 12.54%, signifying an improvement in the company's ability to generate profits from its assets.
3. Return on Total Capital:
- The data shows that the Return on Total Capital was 54.92% in 2020 and significantly increased to 76.60% in 2021, indicating that Etsy Inc efficiently generated returns for both debt and equity investors during these years.
- There is no data provided for the Return on Total Capital for the years 2022, 2023, and 2024, suggesting either the information is not available or further analysis is needed to understand the company's performance in these periods.
4. Return on Equity (ROE):
- Etsy Inc's ROE was 47.04% in 2020 and notably improved to 78.51% in 2021, indicating that the company provided better returns to its equity shareholders during these years.
- Similar to Return on Total Capital, there is no data available for ROE for the years 2022, 2023, and 2024, which requires additional information to evaluate the company's performance in those periods.
In conclusion, while Etsy Inc demonstrated strong profitability ratios in certain years, there were fluctuations in its financial performance over the analyzed period. Further investigation and analysis would be necessary to understand the company's overall profitability trends and factors affecting its financial results.