Etsy Inc (ETSY)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | 6.21 | 5.53 | 6.10 | 6.56 | 6.20 | 3.65 | 3.24 | 3.32 | 3.36 | 3.73 |
Etsy Inc's solvency ratios indicate a strong financial position with minimal debt levels compared to its assets, capital, and equity. The Debt-to-assets ratio has been consistently at 0.00, indicating the company has no debt relative to its total assets. Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also been at 0.00, reflecting that Etsy's capital and equity structures are not burdened by debt obligations.
The Financial leverage ratio, which measures the proportion of a company's assets that are financed with debt, shows a decreasing trend over the reported periods. Although the data is not available for the latter periods, the decreasing trend up to March 31, 2022, suggests that Etsy has been effectively managing its debt levels in relation to its total assets.
Overall, based on the provided solvency ratios data, Etsy Inc appears to have a solid financial foundation with a low debt burden, which bodes well for its long-term financial health and stability. However, it is important to monitor the company's solvency ratios over time to ensure continued prudent financial management.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 31.04 | 31.20 | 24.59 | 19.93 | 17.62 | -0.35 | -0.32 | -0.31 | -0.31 | 45.56 | 41.17 | 48.71 | 28.06 | 20.03 | 16.23 | 9.70 | 6.80 | 5.43 | 2.99 |
Etsy Inc's interest coverage ratio has shown a generally positive trend from March 2020 to December 2024. The interest coverage ratio, which measures the company's ability to pay its interest expenses on outstanding debt, has improved significantly over this period.
Starting at 2.99 in March 2020, the interest coverage ratio increased steadily to reach its peak at 48.71 in December 2021. This indicates that Etsy had ample earnings to cover its interest payments, reflecting a strong financial position and reduced financial risk.
However, there was a significant decline in the interest coverage ratio in the subsequent quarters, with negative figures recorded in September 2022, December 2022, and March 2023. This suggests a potential strain on Etsy's ability to cover its interest obligations during those periods.
The interest coverage ratio returned to positive territory in June 2023 and continued to improve, reaching 31.04 in December 2024. While the ratio did not surpass the peak seen in December 2021, it remained at a healthy level, indicating that Etsy likely had sufficient earnings to service its debt obligations comfortably.
Overall, the analysis of Etsy Inc's interest coverage ratio reveals fluctuations in the company's ability to cover interest expenses over the years, with a general positive trend observed despite some temporary setbacks in the middle of the period under review.