Etsy Inc (ETSY)

Financial leverage ratio

		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
Total assets	US$ in thousands	2,417,780	2,442,210	2,448,090	2,497,670	2,685,400	2,449,200	2,568,750	2,500,540	2,634,960	2,450,310	3,607,100	3,745,180	3,831,810	3,502,140	3,290,420	2,497,410	2,404,490	2,214,500	1,762,030	1,517,640
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
Financial leverage ratio		—	—	—	—	—	—	—	—	—	—	6.21	5.53	6.10	6.56	6.20	3.65	3.24	3.32	3.36	3.73

December 31, 2024 calculation

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

Etsy Inc's financial leverage ratio has shown fluctuations over the past few quarters. As of December 31, 2020, the ratio stood at 3.24, indicating that the company had $3.24 of debt for every $1 of equity. The ratio increased to 6.56 by September 30, 2021, suggesting a significant increase in leverage.

The trend continued with slight variations, reaching a peak of 6.21 on June 30, 2022, and then slightly decreasing to 5.53 by March 31, 2023. However, from September 30, 2022, there is no available data up to December 31, 2024.

The increasing trend in the financial leverage ratio can be concerning as higher leverage implies higher financial risk for the company. It indicates that Etsy Inc is relying more on debt financing relative to equity, which can magnify both returns and losses. Investors and analysts should closely monitor the company's leverage levels and assess the risk associated with its capital structure.