Etsy Inc (ETSY)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 380,208 | 340,534 | 342,273 | 269,732 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -758,866 | -624,300 | -634,996 | -583,761 | -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 |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | 67.33% | 60.05% | 76.60% | 93.39% | 96.61% | 80.07% | 54.92% | 41.35% | 36.22% | 21.76% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $380,208K ÷ ($—K + $-758,866K)
= —
The return on total capital of Etsy Inc has shown a strong positive trend over the reported period, indicating efficient utilization of both debt and equity in generating profits. The ratio has significantly improved from 21.76% as of March 31, 2020, to a peak of 96.61% as of June 30, 2021. This demonstrates the company's ability to generate higher returns relative to the total capital employed in its operations.
However, there was a slight decline in the return on total capital in the subsequent quarters, with the ratio standing at 67.33% as of June 30, 2022. This could be attributed to changes in the capital structure or operational efficiency during that period.
It is worth noting that the return on total capital for the remaining quarters of 2022 and the projections for the years 2023 and 2024 are not available in the provided data. This lack of information limits the ability to assess the company's performance and trajectory in the coming years.
In conclusion, while the historical trend of Etsy Inc's return on total capital exhibits positive growth, further analysis and access to future data would be required to make a more comprehensive evaluation of the company's financial performance and capital efficiency.
Peer comparison
Dec 31, 2024