Etsy Inc (ETSY)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 410,775 | 292,820 | -661,988 | 471,654 | 365,709 |
| Revenue | US$ in thousands | 2,808,330 | 2,748,380 | 2,566,110 | 2,329,110 | 1,725,620 |
| Pretax margin | 14.63% | 10.65% | -25.80% | 20.25% | 21.19% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $410,775K ÷ $2,808,330K
= 14.63%
The pretax margin of Etsy Inc has shown some fluctuation over the years based on the provided data. In December 31, 2020, the pretax margin stood at 21.19%, indicating that the company retained approximately 21.19 cents of each dollar of revenue before taxes. However, by December 31, 2021, the pretax margin slightly decreased to 20.25%.
Notably, in December 31, 2022, the company experienced a significant decline in pretax margin, with the rate plunging to -25.80%. A negative pretax margin suggests that the company incurred more expenses than revenue generated before tax, which raises concerns about its operational efficiency and profitability during that period.
The subsequent years saw a recovery in pretax margin for Etsy Inc. By December 31, 2023, the pretax margin improved to 10.65%, indicating a better financial performance compared to the previous year. This positive trend continued into December 31, 2024, with the pretax margin rising to 14.63%.
Overall, the pretax margin of Etsy Inc reflects a mix of performance challenges and improvements in recent years. It is important for the company to continue monitoring and managing its operational costs effectively to sustain and enhance its profitability in the future.
Peer comparison
Dec 31, 2024