Stock Analysis on Net
Stock Analysis on Net

Etsy Inc. (NASDAQ:ETSY)

This company has been moved to the archive! The financial data has not been updated since November 3, 2022.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Etsy Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
U.S. Federal 23,118 4,854 (3,967) 709 (6,397)
U.S. State 12,754 3,953 1,053 (578) 79
International 31,227 5,455 352 600 476
Current 67,099 14,262 (2,562) 731 (5,842)
U.S. Federal (53,328) (7,684) (19,734) (3,343) (34,948)
U.S. State (14,843) (4,543) (1,564) 3,496 (8,778)
International (20,781) 14,428 8,612 (23,297) 33
Deferred (88,952) 2,201 (12,686) (23,144) (43,693)
Income tax provision (benefit) (21,853) 16,463 (15,248) (22,413) (49,535)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Etsy Inc. current increased from 2019 to 2020 and from 2020 to 2021.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Etsy Inc. deferred increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Income tax provision (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Etsy Inc. income tax provision (benefit) increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Effective Income Tax Rate (EITR)

Etsy Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
U.S. federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 35.00%
Effective income tax rate -4.63% 4.50% -18.91% -40.69% -153.53%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Etsy Inc. effective income tax rate increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Components of Deferred Tax Assets and Liabilities

Etsy Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net operating loss carryforwards 48,689 3,087 19,599 13,347 17,431
Research and development credit carryforwards 367 10,925 13,133 7,567 3,597
Convertible debt 47,142 — — — —
Depreciation 47,055 — — — —
Lease liability 35,871 17,259 18,666 — —
Stock-based compensation expense 19,319 9,616 7,642 6,623 3,776
Accrued bonus 11,850 8,592 4,065 1,049 —
Excess tax basis in intangible assets 1,585 1,223 3,572 12,109 —
Deferred rent — — — 529 573
Other deferred tax assets 14,651 4,645 3,944 1,858 3,541
Deferred tax assets 226,529 55,347 70,621 43,082 28,918
Valuation allowance (1,834) (1,398) (883) (1,673) (11,021)
Net deferred tax asset 224,695 53,949 69,738 41,409 17,897
Excess book basis in intangible assets (173,097) (37,155) (39,500) (362) —
Right-of-use asset (34,612) (16,092) (17,596) — —
Restructuring liability — (23,985) (29,635) (33,730) (33,783)
Convertible debt — (30,632) (22,839) (7,283) —
Depreciation — (4,210) (10,328) (6,933) (6,850)
Other deferred tax liabilities (607) (241) (80) (92) (891)
Deferred tax liabilities (208,316) (112,315) (119,978) (48,400) (41,524)
Net deferred tax assets (liabilities) 16,379 (58,366) (50,240) (6,991) (23,627)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Etsy Inc. deferred tax assets decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Net deferred tax asset Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Etsy Inc. net deferred tax asset decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Etsy Inc. net deferred tax assets (liabilities) decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Deferred Tax Assets and Liabilities, Classification

Etsy Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Deferred tax assets 95,863 115 14,257 23,464 159
Deferred tax liabilities 79,484 58,481 64,497 30,455 23,786

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Etsy Inc. deferred tax assets decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Etsy Inc. deferred tax liabilities decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Adjustments to Financial Statements: Removal of Deferred Taxes

Etsy Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 3,831,809 2,404,489 1,542,352 901,851 605,583
Less: Noncurrent deferred tax assets, net 95,863 115 14,257 23,464 159
Total assets (adjusted) 3,735,946 2,404,374 1,528,095 878,387 605,424
Adjustment to Total Liabilities
Total liabilities (as reported) 3,203,190 1,662,065 1,135,718 500,953 208,689
Less: Noncurrent deferred tax liabilities, net 79,484 58,481 64,497 30,455 23,786
Total liabilities (adjusted) 3,123,706 1,603,584 1,071,221 470,498 184,903
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 628,619 742,424 406,634 400,898 396,894
Less: Net deferred tax assets (liabilities) 16,379 (58,366) (50,240) (6,991) (23,627)
Stockholders’ equity (adjusted) 612,240 800,790 456,874 407,889 420,521
Adjustment to Net Income
Net income (as reported) 493,507 349,246 95,894 77,491 81,800
Add: Deferred income tax expense (benefit) (88,952) 2,201 (12,686) (23,144) (43,693)
Net income (adjusted) 404,555 351,447 83,208 54,347 38,107

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Etsy Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Etsy Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 21.19% 20.24% 11.72% 12.84% 18.54%
Adjusted net profit margin 17.37% 20.37% 10.17% 9.00% 8.64%
Total Asset Turnover
Reported total asset turnover 0.61 0.72 0.53 0.67 0.73
Adjusted total asset turnover 0.62 0.72 0.54 0.69 0.73
Financial Leverage
Reported financial leverage 6.10 3.24 3.79 2.25 1.53
Adjusted financial leverage 6.10 3.00 3.34 2.15 1.44
Return on Equity (ROE)
Reported ROE 78.51% 47.04% 23.58% 19.33% 20.61%
Adjusted ROE 66.08% 43.89% 18.21% 13.32% 9.06%
Return on Assets (ROA)
Reported ROA 12.88% 14.52% 6.22% 8.59% 13.51%
Adjusted ROA 10.83% 14.62% 5.45% 6.19% 6.29%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Etsy Inc. adjusted net profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Etsy Inc. adjusted total asset turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Etsy Inc. adjusted financial leverage ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Etsy Inc. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Etsy Inc. adjusted ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Etsy Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income 493,507 349,246 95,894 77,491 81,800
Revenue 2,329,114 1,725,625 818,379 603,693 441,231
Profitability Ratio
Net profit margin1 21.19% 20.24% 11.72% 12.84% 18.54%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 404,555 351,447 83,208 54,347 38,107
Revenue 2,329,114 1,725,625 818,379 603,693 441,231
Profitability Ratio
Adjusted net profit margin2 17.37% 20.37% 10.17% 9.00% 8.64%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 493,507 ÷ 2,329,114 = 21.19%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 404,555 ÷ 2,329,114 = 17.37%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Etsy Inc. adjusted net profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Revenue 2,329,114 1,725,625 818,379 603,693 441,231
Total assets 3,831,809 2,404,489 1,542,352 901,851 605,583
Activity Ratio
Total asset turnover1 0.61 0.72 0.53 0.67 0.73
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue 2,329,114 1,725,625 818,379 603,693 441,231
Adjusted total assets 3,735,946 2,404,374 1,528,095 878,387 605,424
Activity Ratio
Adjusted total asset turnover2 0.62 0.72 0.54 0.69 0.73

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 2,329,114 ÷ 3,831,809 = 0.61

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 2,329,114 ÷ 3,735,946 = 0.62

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Etsy Inc. adjusted total asset turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets 3,831,809 2,404,489 1,542,352 901,851 605,583
Stockholders’ equity 628,619 742,424 406,634 400,898 396,894
Solvency Ratio
Financial leverage1 6.10 3.24 3.79 2.25 1.53
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 3,735,946 2,404,374 1,528,095 878,387 605,424
Adjusted stockholders’ equity 612,240 800,790 456,874 407,889 420,521
Solvency Ratio
Adjusted financial leverage2 6.10 3.00 3.34 2.15 1.44

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 3,831,809 ÷ 628,619 = 6.10

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 3,735,946 ÷ 612,240 = 6.10

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Etsy Inc. adjusted financial leverage ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income 493,507 349,246 95,894 77,491 81,800
Stockholders’ equity 628,619 742,424 406,634 400,898 396,894
Profitability Ratio
ROE1 78.51% 47.04% 23.58% 19.33% 20.61%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 404,555 351,447 83,208 54,347 38,107
Adjusted stockholders’ equity 612,240 800,790 456,874 407,889 420,521
Profitability Ratio
Adjusted ROE2 66.08% 43.89% 18.21% 13.32% 9.06%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 493,507 ÷ 628,619 = 78.51%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 404,555 ÷ 612,240 = 66.08%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Etsy Inc. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income 493,507 349,246 95,894 77,491 81,800
Total assets 3,831,809 2,404,489 1,542,352 901,851 605,583
Profitability Ratio
ROA1 12.88% 14.52% 6.22% 8.59% 13.51%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 404,555 351,447 83,208 54,347 38,107
Adjusted total assets 3,735,946 2,404,374 1,528,095 878,387 605,424
Profitability Ratio
Adjusted ROA2 10.83% 14.62% 5.45% 6.19% 6.29%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 493,507 ÷ 3,831,809 = 12.88%

2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 404,555 ÷ 3,735,946 = 10.83%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Etsy Inc. adjusted ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.