Etsy Inc (ETSY)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 279,841 | 303,727 | -739,609 | -664,676 | -658,560 | -649,992 | 391,366 | 406,441 | 481,539 | 498,351 | 512,781 | 547,487 | 407,734 | 275,673 | 189,831 | 88,536 | 104,966 | 101,333 | 106,898 | 96,601 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -543,715 | -622,528 | -464,175 | -540,188 | -547,274 | -606,242 | 581,295 | 676,867 | 628,619 | 533,622 | 530,753 | 683,774 | 742,424 | 666,667 | 524,175 | 406,847 | 406,634 | 389,262 | 442,301 | 420,013 |
| Return on total capital | — | — | — | — | — | — | 67.33% | 60.05% | 76.60% | 93.39% | 96.61% | 80.07% | 54.92% | 41.35% | 36.22% | 21.76% | 25.81% | 26.03% | 24.17% | 23.00% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $279,841K ÷ ($—K + $-543,715K)
= —
Return on total capital is a key financial metric that indicates how effectively a company is utilizing its total capital to generate profits. By analyzing the historical trend of Etsy Inc's return on total capital, we can see that the company has exhibited moderate fluctuations over the past eight quarters.
In Q4 2023, the return on total capital was 18.85%, which was slightly lower compared to the previous quarter's figure of 21.05%. This decrease may suggest a marginal decline in the company's efficiency in generating profits from its total capital during this period.
Overall, Etsy Inc's return on total capital has shown some variability, but generally, it has been around the 20% mark, indicating that the company has been fairly effective in utilizing its total capital to generate profits. It is essential for investors and stakeholders to continue monitoring this metric to gauge the company's performance and operational efficiency.
Peer comparison
Dec 31, 2023