Etsy Inc. (NASDAQ:ETSY)

The analysis of the annual debt data reveals several notable trends in the composition and magnitude of reported debt over the five-year period.

Finance Lease Obligations, Current

There is a fluctuating pattern in current finance lease obligations, with a decrease from 5,798 thousand US dollars at the end of 2017 to 3,884 thousand in 2018, followed by an increase to 8,537 thousand in 2020. However, a significant decline occurs in 2021, dropping to 2,418 thousand. This volatility suggests changes in lease agreements or short-term financing needs.

Finance Lease Obligations, Net of Current Portion

This liability shows a substantial increase over the period. Starting at 4,115 thousand in 2017, it initially decreased to 2,095 thousand in 2018, then surged dramatically to 53,611 thousand in 2019. Although it slightly declined to 44,979 thousand in 2020, it reached a peak of 110,283 thousand by the end of 2021. The sharp increases in later years may indicate an expansion in long-term lease commitments or a reclassification of liabilities.

Facility Financing Obligation

Reported only in 2017 and 2018, amounts remain relatively stable around 60,000 thousand. The absence of data in subsequent years may indicate repayment, refinancing, or a change in accounting treatment for this obligation.

Long-Term Debt, Net

This category exhibits a persistent and significant upward trajectory. Starting from a figure of 276,486 thousand in 2018, it nearly triples in 2019 to 785,126 thousand. It continues to rise sharply to 1,062,299 thousand in 2020 and more than doubles again by 2021, reaching 2,275,418 thousand. This trend reflects a considerable increase in long-term debt financing, possibly to support growth, acquisitions, or capital expenditures.

Total Debt and Finance Lease Liabilities (Carrying Amount)

The aggregated total debt closely follows the upward trend seen in long-term debt, increasing from 69,962 thousand in 2017 to 2,388,119 thousand in 2021. This represents an overall substantial increase in debt and lease liabilities over the five years, suggesting a marked increase in leverage.

Overall, the data indicate a strategic increase in long-term debt and extended lease obligations, with total liabilities expanding markedly over the observed period. The fluctuations in current finance lease obligations and the disappearance of facility financing obligations suggest ongoing adjustments in financing structure and liability composition. The company appears to be significantly leveraging debt, particularly long-term borrowing, which may be aimed at supporting its operational expansion or investment activities.