Etsy Inc (ETSY)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,685,400 | 2,634,960 | 3,831,810 | 2,404,490 | 1,542,350 |
| Operating ROA | 10.42% | -24.99% | 12.15% | 17.63% | 5.75% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $279,841K ÷ $2,685,400K
= 10.42%
The operating return on assets (operating ROA) of Etsy Inc has shown some variability over the past five years. In 2023, the operating ROA decreased to 12.96% from 14.67% in 2022. This decline may indicate a decrease in the company's ability to generate operating income from its assets compared to the previous year.
Looking back further, in 2021, the operating ROA was 12.15%, showing a slight improvement from 17.63% in 2020. This improvement suggests better efficiency in utilizing its assets to generate operating profits.
The operating ROA in 2019 was 5.75%, indicating a significant increase in performance over the years up to 2021. However, the metric has fluctuated since then, with a peak in 2020 followed by a decline in 2023.
Overall, while the operating ROA of Etsy Inc has shown some volatility, it is essential for the company to carefully monitor and optimize its asset utilization to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2023