Etsy Inc (ETSY)

Return on assets (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
Net income (ttm)	US$ in thousands	307,568	333,850	-717,068	-705,860	-694,288	-642,279	410,719	435,850	493,507	480,488	482,319	480,490	349,246	231,999	155,039	76,837	95,894	105,854	110,947	96,103
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
ROA		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%	6.22%	7.06%	10.86%	9.79%

December 31, 2023 calculation

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

The return on assets (ROA) of Etsy Inc has shown significant fluctuations over the past eight quarters. In Q4 2023 and Q3 2023, the ROA was 11.45% and 13.63% respectively, indicating a reasonable return on the company's assets during these periods. However, in Q2 2023 and Q1 2023, the ROA plummeted to -27.92% and -28.23% respectively, reflecting poor asset utilization and potentially inefficient operations during those quarters.

Comparing these figures to the same quarters in the previous year, there has been a marked improvement as Q2 2022 and Q1 2022 reported an ROA of 11.39% and 11.64% respectively. This suggests that Etsy Inc was able to better utilize its assets to generate returns in these periods.

The negative ROA in Q2 2023 and Q1 2023 may be a cause for concern, indicating potential inefficiencies or challenges faced by the company during those quarters. Further analysis of the company's financial performance and operational strategies is warranted to understand the underlying factors driving these fluctuations in ROA.