Etsy Inc (ETSY)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | 0.00 | 0.00 |
| Debt-to-equity ratio | — | — | — | 0.00 | 0.00 |
| Financial leverage ratio | — | — | — | 6.10 | 3.24 |
The solvency ratios for Etsy Inc indicate a strong financial position in terms of debt management and leverage. The Debt-to-assets ratio, which measures the proportion of the company's assets financed by debt, remains consistently at 0.00% from 2020 to 2024. This suggests that Etsy Inc has no debt financing its assets during this period, indicating a low risk of financial distress due to debt obligations.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio are both at 0.00% for the years 2020 and 2021. These ratios are not available for the years 2022, 2023, and 2024, but based on the data provided, it can be inferred that the company maintains a debt-free capital and equity structure.
The Financial leverage ratio, which reflects the proportion of the company's assets financed by equity versus debt, shows an increase from 3.24 in 2020 to 6.10 in 2021. Although data is not available for the subsequent years, this higher leverage ratio in 2021 suggests that Etsy Inc relied more on debt financing relative to equity compared to 2020.
Overall, based on the solvency ratios provided, Etsy Inc appears to have a strong solvency position with minimal debt obligations and a conservative debt management approach. However, it is important to monitor future financial reports to assess any changes in the company's debt structure and financial leverage.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 27.54 | 21.85 | -45.72 | 48.71 | 9.70 |
Based on the data provided, the interest coverage ratio of Etsy Inc has shown significant fluctuations over the years.
As of December 31, 2020, the interest coverage ratio was 9.70, indicating that Etsy Inc generated sufficient operating income to cover its interest expenses almost 10 times over.
By December 31, 2021, the interest coverage ratio improved significantly to 48.71, demonstrating a substantial increase in the company's ability to cover its interest obligations effectively.
However, by December 31, 2022, the interest coverage ratio turned negative at -45.72, indicating that Etsy Inc's operating income was insufficient to cover its interest expenses during that period. This negative ratio raises concerns about the company's ability to meet its interest payments from its operating earnings.
Subsequently, by December 31, 2023, the interest coverage ratio recovered to 21.85, showing an improvement in the company's ability to cover its interest charges compared to 2022.
Lastly, as of December 31, 2024, the interest coverage ratio increased further to 27.54, indicating that Etsy Inc continued to strengthen its ability to cover its interest expenses through its operating income.
Overall, the fluctuations in Etsy Inc's interest coverage ratio highlight the importance of monitoring the company's ability to generate sufficient operating income to meet its interest obligations and manage its debt effectively.