Name: Etsy Inc. (NASDAQ:ETSY) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Accounts payable	28,007)	40,883)	26,324)	26,545)	13,622)
Pass-through marketplace tax collection obligation	136,360)	109,662)	39,250)	12,242)	3,747)
Vendor accruals	115,593)	73,437)	25,760)	17,817)	14,576)
Employee compensation-related liabilities	66,477)	43,879)	23,335)	19,099)	10,420)
Taxes payable	9,688)	5,374)	—)	—)	—)
Accrued expenses	328,118)	232,352)	88,345)	49,158)	28,743)
Finance lease obligations, current	2,418)	8,537)	8,275)	3,884)	5,798)
Funds payable and amounts due to sellers	220,206)	146,806)	49,786)	21,072)	44,658)
Deferred revenue	12,339)	11,264)	7,617)	7,478)	6,262)
Other current liabilities	24,500)	14,822)	8,181)	3,925)	3,394)
Current liabilities	615,588)	454,664)	188,528)	112,062)	102,477)
Finance lease obligations, net of current portion	110,283)	44,979)	53,611)	2,095)	4,115)
Deferred tax liabilities	79,484)	58,481)	64,497)	30,455)	23,786)
Facility financing obligation	—)	—)	—)	59,991)	60,049)
Long-term debt, net	2,275,418)	1,062,299)	785,126)	276,486)	—)
Other liabilities	122,417)	41,642)	43,956)	19,864)	18,262)
Non-current liabilities	2,587,602)	1,207,401)	947,190)	388,891)	106,212)
Total liabilities	3,203,190)	1,662,065)	1,135,718)	500,953)	208,689)
Common stock, $0.001 par value	127)	126)	119)	120)	122)
Preferred stock, $0.001 par value	—)	—)	—)	—)	—)
Additional paid-in capital	631,762)	883,166)	642,628)	562,033)	499,441)
Retained earnings (accumulated deficit)	71,744)	(146,819)	(227,414)	(153,442)	(96,290)
Accumulated other comprehensive income (loss)	(75,014)	5,951)	(8,699)	(7,813)	(6,379)
Stockholders’ equity	628,619)	742,424)	406,634)	400,898)	396,894)
Total liabilities and stockholders’ equity	3,831,809)	2,404,489)	1,542,352)	901,851)	605,583)

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).

The balance sheet exhibits an aggressive expansion in total liabilities and a significant shift in capital structure between 2017 and 2021. Total liabilities and stockholders' equity grew from 605.6 million US dollars to 3.83 billion US dollars over the five-year period. This growth is characterized by a transition from a relatively lean liability profile to one heavily leveraged by long-term debt and operational obligations tied to marketplace scaling.

Current Liability Trends: Current liabilities increased from 102.5 million US dollars in 2017 to 615.6 million US dollars in 2021. A primary driver of this increase is the growth in pass-through marketplace tax collection obligations, which rose from 3.7 million US dollars to 136.4 million US dollars. Similarly, funds payable and amounts due to sellers escalated from 44.7 million US dollars in 2017 to 220.2 million US dollars in 2021. These patterns suggest a substantial increase in transaction volume and marketplace activity. Additionally, accrued expenses saw a sharp rise, peaking at 328.1 million US dollars in 2021.
Non-Current Liability and Debt Analysis: Non-current liabilities experienced the most dramatic growth, rising from 106.2 million US dollars in 2017 to 2.59 billion US dollars in 2021. This was driven almost entirely by long-term debt, which was non-existent in 2017 but reached 2.28 billion US dollars by the end of 2021. Finance lease obligations also trended upward, increasing from 4.1 million US dollars to 110.3 million US dollars. The rapid accumulation of long-term debt indicates a strategic shift toward debt-funded financing to support growth or capital restructuring.
Stockholders' Equity and Profitability Indicators: Stockholders' equity grew from 396.9 million US dollars in 2017 to 628.6 million US dollars in 2021, though the growth pace lagged significantly behind that of total liabilities. A critical inflection point is observed in retained earnings, which transitioned from an accumulated deficit of 227.4 million US dollars in 2019 to a positive balance of 71.7 million US dollars by 2021. This shift indicates a transition from a period of net losses to sustained profitability. Additionally, accumulated other comprehensive income showed significant volatility, ending with a loss of 75.0 million US dollars in 2021.
Overall Financial Position: The leverage profile of the organization shifted substantially over the analyzed period. While total equity increased moderately, the surge in total liabilities from 208.7 million US dollars to 3.20 billion US dollars has resulted in a significantly higher debt-to-equity ratio. The balance sheet reflects an organization that has scaled its operations rapidly, utilizing substantial debt to fund this expansion while successfully pivoting toward positive retained earnings.

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