Etsy Inc (ETSY)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 380,208 | 279,841 | -658,560 | 465,732 | 424,009 |
| Total assets | US$ in thousands | 2,417,780 | 2,685,400 | 2,634,960 | 3,831,810 | 2,404,490 |
| Operating ROA | 15.73% | 10.42% | -24.99% | 12.15% | 17.63% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $380,208K ÷ $2,417,780K
= 15.73%
Etsy Inc's operating return on assets (operating ROA) experienced fluctuations over the period from December 31, 2020, to December 31, 2024. It stood at a healthy 17.63% as of December 31, 2020, indicating the company was efficiently generating operating profits relative to its assets. However, there was a notable decline by December 31, 2021, as operating ROA dropped to 12.15%, suggesting a potential decrease in operational efficiency or asset utilization.
The performance worsened significantly by December 31, 2022, with a negative operating ROA of -24.99%. This negative figure implies that operating losses exceeded the value of assets employed by the company during that period, signaling potential operational challenges or inefficiencies.
Etsy Inc managed to rebound by December 31, 2023, with operating ROA improving to 10.42%, indicating a return to generating operating profits relative to its assets. Subsequently, by December 31, 2024, the operating ROA further increased to 15.73%, showcasing a positive trend in operational efficiency and asset utilization.
Overall, the fluctuations in Etsy Inc's operating ROA over the period suggest varying levels of operational performance and efficiency. It is essential for the company to keep a close eye on managing its assets effectively to sustain or improve its operating return on assets in the future.
Peer comparison
Dec 31, 2024