Common-Size Income Statement
Paying user area
Try for free
Etsy Inc. pages available for free this week:
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Operating Profit (P/OP) since 2015
- Analysis of Revenues
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Etsy Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Etsy Inc., common-size consolidated income statement
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).
- Revenue and Cost Structure
- The revenue is consistently presented as 100% over all periods, serving as the baseline for analysis. The cost of revenue as a percentage of revenue demonstrates a general decline from 34.22% in 2017 to a low of 26.93% in 2020, before slightly increasing again to 28.1% in 2021. Correspondingly, gross profit margins have improved notably from 65.78% in 2017 to peak at 73.07% in 2020, then slightly declining to 71.9% in 2021, indicating an overall enhancement in cost efficiency and profitability from core operations.
- Operating Expenses
- Marketing expenses as a percentage of revenue remain relatively stable, fluctuating between 24.72% and 29.02% across the years, peaking in 2020. Product development costs show a consistent reduction from 16.91% in 2017 to 10.44% in 2020, followed by a minor increase to 11.66% in 2021, suggesting a strategic decrease in investment in product development during the middle period with some reinvestment later. General and administrative expenses have decreased significantly from 20.73% in 2017 to 9.04% in 2020, but rise again to 12.13% in 2021. Overall, operating expenses as a percentage of revenue have decreased from 63.08% in 2017 to a low of 48.5% in 2020, rising again to 51.9% in 2021, showing improved operational efficiency notably in 2020 followed by a slight increase in costs in the subsequent year.
- Profitability Measures
- Income from operations experienced strong growth from 2.7% in 2017 to 24.57% in 2020, reflecting improved operational profitability, before declining to 20% in 2021. Income before income taxes follows a similar trend, rising from 7.31% in 2017 to 21.19% in 2020 and slightly decreasing to 20.25% in 2021. Net income margins show a positive trend with some volatility: starting at 18.54% in 2017, falling to a low of 11.72% in 2019, then climbing to 20.24% in 2020 and further to 21.19% in 2021, indicating an overall improvement in bottom-line profitability during the latter years.
- Non-Operating Items and Taxes
- Interest expense decreased from 2.52% in 2017 to 0.42% in 2021, indicating reduced costs related to debt or improved financing costs. Interest and other income have small fluctuations, generally low and declining towards 2021. Foreign exchange gains/losses show variability with a significant positive spike at 6.6% in 2017, then fluctuating near zero in subsequent years, with a slight positive value in 2021. Other income (expense) switched from positive 4.62% in 2017 to negative values in subsequent years before rebounding marginally in 2021. Tax provisions demonstrate a declining trend from a favorable 11.23% benefit in 2017 to a slight tax expense in 2020 (-0.95%), then a minor benefit again in 2021 (0.94%). These factors contributed to variations in net income beyond operating performance.
- Overall Insights
- The data indicates consistent revenue base with improved cost management leading to higher gross profit margins and better operating efficiencies, especially notable in the year 2020. Operating expenses were reduced meaningfully, particularly in product development and general administration, enhancing operational income. Non-operating income and expenses offer some fluctuations but are relatively minor contributors by 2021. Income tax positions shifted over time, impacting net profitability variably. Net income margins recovered after a dip in 2019, reaching the highest percentages in 2020 and 2021, reflecting improved overall financial performance. The year 2020 stands out as a peak period for profitability, likely influenced by cost controls and operational effectiveness. The slight retreat in margins in 2021 may indicate increased expense pressures or strategic reinvestments.