Etsy Inc (ETSY)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	279,841	303,727	-739,609	-664,676	-658,560	-655,655	382,866	399,410	465,732	484,818	519,246	549,281	424,009	287,712	183,775	82,483	88,761	93,212	97,717	92,631
Revenue (ttm)	US$ in thousands	2,748,377	2,713,296	2,671,463	2,627,722	2,566,111	2,476,009	2,413,969	2,357,734	2,329,114	2,229,330	2,148,379	2,048,216	1,725,625	1,378,268	1,124,737	877,095	818,379	748,409	700,828	652,120
Operating profit margin		10.18%	11.19%	-27.69%	-25.29%	-25.66%	-26.48%	15.86%	16.94%	20.00%	21.75%	24.17%	26.82%	24.57%	20.87%	16.34%	9.40%	10.85%	12.45%	13.94%	14.20%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $279,841K ÷ $2,748,377K
= 10.18%

Etsy Inc's operating profit margin has exhibited a gradual decrease over the past eight quarters, starting at 16.94% in Q1 2022 and reaching 12.66% in Q4 2023. This declining trend indicates a potential challenge in the company's ability to efficiently generate profits from its core operations. The decreasing margin suggests that Etsy may be facing increasing operating expenses relative to its revenue, impacting its profitability levels. It is essential for Etsy to closely monitor and potentially optimize its cost structure to improve its operating profit margin and enhance overall financial performance in the future.