Etsy Inc (ETSY)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	380,208	340,534	342,273	269,732	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
Revenue (ttm)	US$ in thousands	2,808,332	2,798,492	2,772,384	2,753,454	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
Operating profit margin		13.54%	12.17%	12.35%	9.80%	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%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $380,208K ÷ $2,808,332K
= 13.54%

The operating profit margin of Etsy Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. It increased steadily from 9.40% in March 2020 to a peak of 26.82% by March 31, 2021, reflecting improvements in the company's operational efficiency and profitability. However, the operating profit margin then experienced a decline, dropping to 15.86% by June 30, 2022, and turning negative in subsequent quarters, reaching as low as -27.69% by June 30, 2023.

From September 30, 2023, onwards, there was a significant turnaround as the operating profit margin improved to 13.54% by December 31, 2024. This indicates that Etsy Inc made strategic adjustments to enhance its profitability and control operating expenses during this period. Overall, while there were fluctuations in the operating profit margin, the company managed to stabilize and improve its margins by the end of the period under review.