Etsy Inc (ETSY)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	2,685,400	2,449,200	2,568,750	2,500,540	2,634,960	2,450,310	3,607,100	3,745,180	3,831,810	3,502,140	3,290,420	2,497,410	2,404,490	2,214,500	1,762,030	1,517,640	1,542,350	1,499,200	1,021,780	981,168
Operating ROA		10.42%	12.40%	-28.79%	-26.58%	-24.99%	-26.76%	10.61%	10.66%	12.15%	13.84%	15.78%	21.99%	17.63%	12.99%	10.43%	5.43%	5.75%	6.22%	9.56%	9.44%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $279,841K ÷ $2,685,400K
= 10.42%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating profits relative to its total assets. Examining the data provided for Etsy Inc's Operating ROA over the past eight quarters reveals fluctuations in the company's operational efficiency and asset utilization.

In Q4 2023, Etsy Inc's Operating ROA stood at 12.96%, marking a decline from the preceding quarter's figure of 15.18%. This decrease indicates a reduction in the company's ability to generate operating income from its assets during that period. However, the Q4 2023 Operating ROA remains above the levels recorded in Q2 and Q3 2022, suggesting a relatively stable performance compared to those earlier periods.

Looking at the broader trend, Etsy Inc's Operating ROA has been relatively strong over the past eight quarters, consistently ranging above 10%. The highest level was recorded in Q3 2022 at 15.89%, reflecting a peak in operational efficiency and asset productivity during that period. On the other hand, the lowest values were observed in Q1 and Q2 2022, indicating potential challenges in generating operating income relative to the company's asset base during those quarters.

Overall, while there have been fluctuations in Etsy Inc's Operating ROA over the past two years, the company has generally maintained a healthy level of operational return on its assets. It is crucial for investors and stakeholders to continue monitoring this ratio to assess the company's ongoing operational performance and asset utilization efficiency.