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.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Etsy Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Accounts payable 0.73 1.70 1.71 2.94 2.25
Pass-through marketplace tax collection obligation 3.56 4.56 2.54 1.36 0.62
Vendor accruals 3.02 3.05 1.67 1.98 2.41
Employee compensation-related liabilities 1.73 1.82 1.51 2.12 1.72
Taxes payable 0.25 0.22 0.00 0.00 0.00
Accrued expenses 8.56% 9.66% 5.73% 5.45% 4.75%
Finance lease obligations, current 0.06 0.36 0.54 0.43 0.96
Funds payable and amounts due to sellers 5.75 6.11 3.23 2.34 7.37
Deferred revenue 0.32 0.47 0.49 0.83 1.03
Other current liabilities 0.64 0.62 0.53 0.44 0.56
Current liabilities 16.07% 18.91% 12.22% 12.43% 16.92%
Finance lease obligations, net of current portion 2.88 1.87 3.48 0.23 0.68
Deferred tax liabilities 2.07 2.43 4.18 3.38 3.93
Facility financing obligation 0.00 0.00 0.00 6.65 9.92
Long-term debt, net 59.38 44.18 50.90 30.66 0.00
Other liabilities 3.19 1.73 2.85 2.20 3.02
Non-current liabilities 67.53% 50.21% 61.41% 43.12% 17.54%
Total liabilities 83.59% 69.12% 73.64% 55.55% 34.46%
Common stock, $0.001 par value 0.00 0.01 0.01 0.01 0.02
Preferred stock, $0.001 par value 0.00 0.00 0.00 0.00 0.00
Additional paid-in capital 16.49 36.73 41.67 62.32 82.47
Retained earnings (accumulated deficit) 1.87 -6.11 -14.74 -17.01 -15.90
Accumulated other comprehensive income (loss) -1.96 0.25 -0.56 -0.87 -1.05
Stockholders’ equity 16.41% 30.88% 26.36% 44.45% 65.54%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

Liabilities Composition and Trends
Current liabilities as a percentage of total liabilities and stockholders’ equity show fluctuations over the observed years. Starting from 16.92% in 2017, they declined to around 12.22% in 2019, surged significantly to 18.91% in 2020, and then decreased to 16.07% in 2021. Notably, accrued expenses increased markedly from 4.75% in 2017 to a peak of 9.66% in 2020 before slightly decreasing to 8.56% in 2021, indicating growing short-term obligations in this category.
Among specific current liabilities, the pass-through marketplace tax collection obligation exhibited a pronounced rise from 0.62% in 2017 to 4.56% in 2020, followed by a slight decline to 3.56% in 2021, reflecting changing tax-related liabilities. Similarly, vendor accruals and funds payable and amounts due to sellers demonstrated variability, with funds payable decreasing sharply from 7.37% in 2017 to 2.34% in 2018, then rising again to 6.11% in 2020 before declining to 5.75% in 2021.
Finance lease obligations, both current and net of current portion, presented an inconsistent pattern. Current obligations steadily decreased from 0.96% in 2017 to 0.06% in 2021, whereas non-current finance lease obligations increased overall, notably spiking to 3.48% in 2019, falling in 2020, and rebounding to 2.88% in 2021.
Deferred revenue and other current liabilities remained relatively stable but experienced slight decreases, with deferred revenue falling from 1.03% in 2017 to 0.32% in 2021, indicating a reduced amount of unearned revenue recorded on the balance sheet.
Long-term debt, net of current portion, rose substantially over the examined period. It was absent in 2017, then constituted 30.66% in 2018, increasing to 59.38% by 2021, highlighting an increasing reliance on long-term borrowings.
The total non-current liabilities demonstrated a significant upward trend, climbing from 17.54% of total liabilities and stockholders’ equity in 2017 to 67.53% in 2021, indicating a shift toward long-term obligations in the capital structure.
Overall, total liabilities increased markedly from 34.46% in 2017 to 83.59% in 2021, reflecting a growing proportion of the balance sheet financed through liabilities.
Stockholders’ Equity Dynamics
Stockholders’ equity as a proportion of total liabilities and stockholders’ equity decreased consistently from 65.54% in 2017 to 16.41% in 2021, indicating a substantial decline in equity financing relative to liabilities.
Additional paid-in capital showed a pronounced reduction, dropping from 82.47% in 2017 to 16.49% in 2021, which suggests limited equity issuance or possible repurchases affecting this category.
Retained earnings improved over the time frame, moving from an accumulated deficit of -15.90% in 2017 to a positive 1.87% in 2021, implying profitability improvements or other comprehensive movements contributing to accumulated earnings.
Accumulated other comprehensive income (loss) displayed volatility, starting slightly negative at -1.05% in 2017, peaking to a positive 0.25% in 2020, then dropping to -1.96% in 2021, reflecting periodic gains and losses on items such as foreign currency translation or unrealized gains/losses on securities.
Other Observations
Accounts payable declined substantially from 2.25% in 2017 to 0.73% in 2021, suggesting improved payment cycles or shifts in supplier financing.
Taxes payable began to be reported starting in 2020, remaining minimal relative to total liabilities and equity (approximately 0.22% to 0.25%), indicating a minor immediate tax obligation on the balance sheet.
Deferred tax liabilities decreased progressively from 3.93% in 2017 to 2.07% in 2021, reflecting potential changes in tax timing differences or tax strategies.
Summary of Capital Structure Shifts
The overall capital structure evolved toward increased leverage as total liabilities grew significantly and stockholders’ equity contracted proportionately. This shift suggests greater dependence on debt and other liabilities for financing operations and growth.
The increase in long-term debt and non-current liabilities, combined with declining equity components such as additional paid-in capital and common stock representation, highlights changing funding strategies or capital management practices.