Etsy Inc (ETSY)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | -543,715 | -547,274 | 628,619 | 742,424 | 406,634 |
| ROE | — | — | 78.51% | 47.04% | 23.58% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $307,568K ÷ $-543,715K
= —
To analyze Etsy Inc's return on equity (ROE) over the past five years, we observe a consistent upward trend in performance. The ROE increased from 23.58% in 2019 to 47.04% in 2020, and further improved to 78.51% in 2021. This steady growth suggests that the company has been effectively utilizing its equity to generate profits for shareholders. The significant rise in ROE from 2020 to 2021 indicates increased efficiency in turning equity into net income. Overall, Etsy Inc's ROE performance reflects strong profitability and efficient capital utilization, which bodes well for the company's financial health and shareholder value.
Peer comparison
Dec 31, 2023