Etsy Inc (ETSY)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	2,417,780	2,685,400	2,634,960	3,831,810	2,404,490
Total stockholders’ equity	US$ in thousands	-758,866	-543,715	-547,274	628,619	742,424
Financial leverage ratio		—	—	—	6.10	3.24

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,417,780K ÷ $-758,866K
= —

The financial leverage ratio of Etsy Inc has exhibited an increasing trend over the past few years. As of December 31, 2020, the ratio stood at 3.24, signifying that for every dollar of equity, the company had $3.24 in debt. By December 31, 2021, this ratio had increased significantly to 6.10, indicating a substantial rise in the level of debt relative to equity. It is noteworthy that the data for subsequent years, including December 31, 2022, 2023, and 2024, is not available.

The escalation in the financial leverage ratio from 2020 to 2021 suggests a higher dependency on debt financing by Etsy Inc, which may have implications for its financial risk and solvency. An increasing leverage ratio can indicate a greater reliance on borrowed funds, potentially resulting in higher interest expenses and financial vulnerability, especially in times of economic instability.

It would be important for Etsy Inc stakeholders to monitor and assess the company's debt levels and leverage ratio in the coming years to ensure sustainable financial health and optimal capital structure management.