Etsy Inc (ETSY)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 279,841 | -658,560 | 465,732 | 424,009 | 88,761 |
| Revenue | US$ in thousands | 2,748,380 | 2,566,110 | 2,329,110 | 1,725,620 | 818,379 |
| Operating profit margin | 10.18% | -25.66% | 20.00% | 24.57% | 10.85% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $279,841K ÷ $2,748,380K
= 10.18%
Etsy Inc's operating profit margin has shown a downward trend over the past five years, decreasing from 10.85% in 2019 to 12.66% in 2023. This indicates a decline in the company's ability to generate profits from its core operations. The peak operating profit margin of 24.57% in 2020 was followed by a significant drop in subsequent years.
A lower operating profit margin may suggest an increase in operating expenses relative to revenue, impacting the company's profitability. It could be attributed to various factors such as rising costs, pricing pressures, or inefficiencies in operations.
Investors and stakeholders may view a declining operating profit margin as a cause for concern, as it may indicate potential challenges in maintaining profitability and efficiently managing costs. Further analysis of the company's financial performance and operational strategies may be necessary to understand the underlying reasons for the trend and assess the company's future prospects.
Peer comparison
Dec 31, 2023