Etsy Inc (ETSY)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 307,568 | -694,288 | 493,507 | 349,246 | 95,894 |
| Revenue | US$ in thousands | 2,748,380 | 2,566,110 | 2,329,110 | 1,725,620 | 818,379 |
| Net profit margin | 11.19% | -27.06% | 21.19% | 20.24% | 11.72% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $307,568K ÷ $2,748,380K
= 11.19%
The net profit margin of Etsy Inc has shown variability over the past five years. In 2023, the net profit margin improved significantly to 11.19%, indicating that the company generated 11.19 cents of profit for every dollar of revenue. This is a positive sign, reflecting efficient cost management and potentially higher revenue relative to costs.
The negative net profit margin of -27.06% in 2022 is a concerning outlier, suggesting that the company incurred significant losses relative to its revenue during that period. This indicates that expenses exceeded revenue, leading to an unsustainable operating scenario.
In 2021 and 2020, the net profit margin was relatively stable at 21.19% and 20.24% respectively, indicating healthy profitability levels. This consistency suggests that Etsy Inc effectively managed its costs and generated consistent profits relative to its revenue during these years.
In 2019, the net profit margin was 11.72%, showing a modest profitability level. While still positive, it was lower compared to the following years, indicating potential room for improvement in cost management or revenue generation strategies.
Overall, the trend in Etsy Inc's net profit margin demonstrates a mix of strong profitability, challenging periods, and opportunities for optimization. Monitoring this ratio over time can provide insights into the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023