Etsy Inc (ETSY)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 306,862 | -647,820 | 481,539 | 407,734 | 104,966 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -543,715 | -547,274 | 628,619 | 742,424 | 406,634 |
| Return on total capital | — | — | 76.60% | 54.92% | 25.81% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $306,862K ÷ ($—K + $-543,715K)
= —
Etsy Inc's return on total capital has fluctuated over the past five years. In 2023, the return on total capital was 18.85%, which represents a decrease from the previous year's 20.97%. Despite the slight decline, the company's return on total capital remains at a relatively healthy level compared to previous years. In 2022, the return on total capital was 20.97%, marking a significant improvement from 2019 and 2021. The highest return on total capital was recorded in 2020 at 22.82%, indicating efficient utilization of the company's total capital during that year. Conversely, in 2019, Etsy Inc's return on total capital was 7.08%, which was substantially lower compared to the subsequent years.
Overall, Etsy Inc's return on total capital has shown variability but has generally remained positive, reflecting the company's ability to generate profits relative to its total capital invested. Continued monitoring of this ratio is essential to assess the company's performance in efficiently utilizing its capital resources in the future.
Peer comparison
Dec 31, 2023