Etsy Inc (ETSY)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 72.42% | 70.96% | 70.57% | 70.21% | 69.85% | 70.56% | 70.64% | 70.81% | 70.98% | 70.61% | 70.71% | 70.96% | 71.90% | 73.25% | 73.80% | 74.36% | 73.07% | 70.63% | 68.56% | 65.71% |
| 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% |
| Pretax margin | 14.63% | 12.21% | 13.16% | 10.58% | 10.65% | 11.48% | -27.49% | -25.37% | -25.80% | -26.07% | 16.04% | 16.96% | 20.25% | 21.56% | 22.68% | 25.08% | 21.19% | 17.06% | 13.77% | 6.72% |
| Net profit margin | 10.80% | 9.17% | 10.36% | 10.75% | 11.19% | 12.30% | -26.84% | -26.86% | -27.06% | -25.94% | 17.01% | 18.49% | 21.19% | 21.55% | 22.45% | 23.46% | 20.24% | 16.83% | 13.78% | 8.76% |
Etsy Inc's profitability ratios have shown fluctuations over the years based on the provided data.
1. Gross Profit Margin: The gross profit margin has generally been above 70% in recent years, indicating that Etsy has been effectively managing its production costs and generating strong profits on sales.
2. Operating Profit Margin: The operating profit margin has varied significantly, with positive values in earlier years but turning negative in the second half of 2022 and early 2023. This suggests challenges in controlling operating expenses during that period.
3. Pretax Margin: Similar to the operating profit margin, the pretax margin also experienced a downturn in the second half of 2022 and early 2023, with negative values during that period. This indicates lower profitability before accounting for taxes and further highlights the challenges faced by the company.
4. Net Profit Margin: The net profit margin, which represents the bottom-line profitability after all expenses including taxes, also suffered in the second half of 2022 and early 2023 with negative values. Despite recovering in later periods, the margins remained lower compared to previous years.
Overall, while Etsy Inc has shown strong gross profit margins, indicating efficiency in production, the company faced profitability challenges in late 2022 and early 2023, as evidenced by negative operating, pretax, and net profit margins. It will be crucial for Etsy to focus on cost management and revenue generation strategies to improve its overall profitability in the coming quarters.
Return on investment
| 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 return on assets (Operating ROA) | 15.73% | 13.94% | 13.98% | 10.80% | 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% |
| Return on assets (ROA) | 12.54% | 10.51% | 11.73% | 11.85% | 11.45% | 13.63% | -27.92% | -28.23% | -26.35% | -26.21% | 11.39% | 11.64% | 12.88% | 13.72% | 14.66% | 19.24% | 14.52% | 10.48% | 8.80% | 5.06% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | 67.33% | 60.05% | 76.60% | 93.39% | 96.61% | 80.07% | 54.92% | 41.35% | 36.22% | 21.76% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | 70.66% | 64.39% | 78.51% | 90.04% | 90.87% | 70.27% | 47.04% | 34.80% | 29.58% | 18.89% |
Etsy Inc's profitability ratios show a fluctuating trend over the period.
The Operating return on assets (Operating ROA) increased steadily from March 2020 to March 2021, peaking at 21.99%, indicating the company's ability to generate profits from its operational activities. However, this ratio declined in subsequent periods, reaching negative values in the later half of 2022 and into 2023, reflecting a decrease in operating efficiency and profitability.
The Return on assets (ROA) also followed a similar pattern, with a peak in March 2021 before decreasing and turning negative in the same period as the Operating ROA. This metric measures overall profitability in relation to total assets, and the negative values suggest potential challenges in generating profits relative to the company's asset base.
Return on total capital reached its peak in June 2021 at 96.61%, indicating strong returns generated on total invested capital. However, this ratio became unavailable from September 2022 onwards, making it challenging to assess the company's performance in utilizing all sources of capital for profitability.
Return on equity (ROE) mirrors the pattern of the other profitability ratios, with significant growth up to June 2021 followed by a decline and eventual unavailability of data from September 2022 onwards. ROE reflects the returns generated for shareholders based on their equity investment in the company.
Overall, the analysis of Etsy Inc's profitability ratios suggests a period of significant profitability followed by a decline and lack of data availability for more recent periods. This highlights the importance of monitoring the company's financial performance to understand its ability to generate profits efficiently and effectively over time.