Etsy Inc (ETSY)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	307,568	-694,288	493,507	349,246	95,894
Total assets	US$ in thousands	2,685,400	2,634,960	3,831,810	2,404,490	1,542,350
ROA		11.45%	-26.35%	12.88%	14.52%	6.22%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $307,568K ÷ $2,685,400K
= 11.45%

Etsy Inc's return on assets (ROA) has varied significantly over the past five years, as indicated by the data provided. In 2019, the ROA stood at 6.22%, reflecting the company's ability to generate 6.22 cents of profit for every dollar of assets it holds. Subsequently, in 2020, the ROA increased to 14.52%, showcasing a significant improvement in the company's asset utilization efficiency.

However, in 2021, there was a slight decrease in ROA to 12.88%, which might be attributed to changes in the company's asset base or profitability. The following year, in 2022, the ROA turned negative at -26.35%, indicating that the company's assets were not effectively utilized to generate profits, leading to a net loss.

Nonetheless, in the most recent period of December 31, 2023, Etsy Inc saw a notable recovery in its ROA, which stood at 11.45%. This indicates a positive return on assets and suggests improved efficiency in utilizing its asset base to generate profits.

Overall, the fluctuation in Etsy Inc's ROA over the years highlights the importance of closely monitoring the company's asset management and profitability strategies to ensure sustainable growth and profitability in the future.