Etsy Inc (ETSY)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 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 | 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 | 3.79 | 3.85 | 2.31 | 2.34 |
The solvency ratios of Etsy Inc, as indicated by the data provided, show a mixed trend over the past eight quarters.
The debt-to-assets ratio has fluctuated between 0.66 and 0.98 during this period. Higher values of this ratio, such as 0.98 in Q3 2023, indicate a higher level of debt relative to the total assets of the company.
The debt-to-capital ratio has also varied, ranging from 0.78 to 1.35. This ratio provides insight into the proportion of the company's capital that is funded by debt. A higher ratio suggests a higher reliance on debt for financing the company's operations.
The debt-to-equity ratio, for which data is available only for Q1 and Q2 2022, indicates the extent to which the company is financed by debt compared to equity. In this case, the values of 3.53 and 4.11 for Q1 and Q2 2022, respectively, highlight a higher level of debt financing relative to equity during those quarters.
Lastly, the financial leverage ratio, for which data is available only for Q1 and Q2 2022, shows a similar trend as the debt-to-equity ratio, with values of 5.53 and 6.21 indicating a higher financial leverage during those periods.
Overall, the solvency ratios of Etsy Inc demonstrate varying levels of debt utilization and financial leverage over the past two years, reflecting the company's financing strategies and potential financial risks.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 91.09 | 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 | 4.32 | 4.93 | 4.94 | 4.19 |
Etsy Inc's interest coverage ratio has shown a declining trend over the past few quarters, with the ratio decreasing from a high of 110.02 in Q3 2022 to 24.78 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its earnings has weakened significantly.
The substantial drop in the interest coverage ratio may raise concerns about Etsy's ability to meet its interest obligations comfortably in the short term. A declining interest coverage ratio could also suggest a higher level of financial risk for the company, as it may be more vulnerable to changes in interest rates or unexpected financial challenges.
It is essential for investors and stakeholders to monitor this trend closely to assess the company's financial health and sustainability. Management may need to address the factors contributing to the decline in interest coverage to ensure the company's long-term financial stability.