Etsy Inc (ETSY)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	303,281	256,641	287,125	296,035	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
Total assets	US$ in thousands	2,417,780	2,442,210	2,448,090	2,497,670	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
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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $303,281K ÷ $2,417,780K
= 12.54%

Etsy Inc's return on assets (ROA) has shown fluctuations over the given time period from March 31, 2020, to December 31, 2024.

Initially, in March 2020, the ROA was 5.06%, indicating that the company generated 5.06 cents in profit for each dollar of assets. The ROA increased steadily to reach a peak of 19.24% by March 2021, suggesting improved efficiency in asset utilization.

However, the ROA started to decline after March 2021, dipping to 11.39% by June 2022, as the percentage of profit generated from assets decreased. The trend continued, and by March 2023, the ROA turned negative, indicating that the company's assets were not effectively utilized to generate profits.

The negative trend in ROA persisted until September 2023, where it rebounded to 13.63%. The company managed to improve its asset utilization, reflected in the positive ROA figure. This positive trend continued, with ROA hovering around 11-12% in the subsequent quarters up to December 2024.

Overall, the analysis of Etsy Inc's ROA shows a fluctuating pattern, with periods of both positive and negative returns. It suggests that the company experienced challenges in optimizing its asset efficiency during certain quarters but managed to make improvements to enhance profitability in later periods.