Current Ratio
since 2015
Calculation
Etsy Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 2.18 | = | 1,341,501) | ÷ | 615,588) |
| Dec 31, 2020 | 4.17 | = | 1,894,781) | ÷ | 454,664) |
| Dec 31, 2019 | 4.89 | = | 921,038) | ÷ | 188,528) |
| Dec 31, 2018 | 6.07 | = | 680,289) | ÷ | 112,062) |
| Dec 31, 2017 | 4.29 | = | 439,264) | ÷ | 102,477) |
| Dec 31, 2016 | 4.42 | = | 371,032) | ÷ | 84,008) |
| Dec 31, 2015 | 4.48 | = | 359,054) | ÷ | 80,122) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 US$ in thousands
An analysis of the liquidity position from 2015 to 2021 reveals a period of significant asset expansion followed by a notable contraction in the current ratio. While the organization maintained a very high liquidity buffer for the majority of the period, the most recent data indicates a shift toward a more lean short-term financial structure.
- Asset and Liability Trends
- Current assets experienced substantial growth, rising from 359,054 thousand US dollars in 2015 to a peak of 1,894,781 thousand US dollars in 2020, before retreating to 1,341,501 thousand US dollars in 2021. During the same timeframe, current liabilities exhibited a consistent upward trajectory, increasing from 80,122 thousand US dollars in 2015 to 615,588 thousand US dollars in 2021. The acceleration in liabilities was particularly pronounced between 2019 and 2021, where obligations more than tripled.
- Current Ratio Analysis
- The current ratio remained robust and well above industry norms between 2015 and 2020, fluctuating between 4.17 and a peak of 6.07 in 2018. This indicated a significant surplus of short-term assets relative to short-term obligations. However, a sharp decline is observed in 2021, with the ratio falling to 2.18. This decrease is attributed to the simultaneous reduction in current assets and the continued increase in current liabilities.
- Liquidity Implications
- Despite the downward trend observed in 2021, the current ratio of 2.18 suggests that the entity still possesses sufficient liquidity to cover its short-term obligations. The transition from a ratio above 4.0 to 2.18 reflects a reduction in excess liquidity, moving the balance sheet toward a more optimized utilization of current assets.
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Comparison to Competitors
Etsy Inc., current ratio, long-term trends, comparison to competitors
| Etsy Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 2.18 | 1.14 | 1.23 | 1.19 | 1.46 |
| Dec 31, 2020 | 4.17 | 1.05 | 1.08 | 1.01 | 1.24 |
| Dec 31, 2019 | 4.89 | 1.10 | 1.11 | 0.98 | 1.53 |
| Dec 31, 2018 | 6.07 | 1.10 | 1.17 | 1.06 | 1.66 |
| Dec 31, 2017 | 4.29 | 1.04 | 1.25 | 1.00 | 1.63 |
| Dec 31, 2016 | 4.42 | 1.04 | 1.36 | 1.01 | 1.54 |
| Dec 31, 2015 | 4.48 | 1.08 | 1.36 | 1.08 | 1.71 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Etsy Inc., current ratio, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Etsy Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Dec 31, 2021 | 2.18 | 1.17 |
| Dec 31, 2020 | 4.17 | 1.06 |
| Dec 31, 2019 | 4.89 | 1.10 |
| Dec 31, 2018 | 6.07 | 1.13 |
| Dec 31, 2017 | 4.29 | 1.10 |
| Dec 31, 2016 | 4.42 | 1.12 |
| Dec 31, 2015 | 4.48 | 1.17 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Industry (Consumer Discretionary)
Etsy Inc., current ratio, long-term trends, comparison to industry (consumer discretionary)
| Etsy Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2021 | 2.18 | 1.25 |
| Dec 31, 2020 | 4.17 | 1.19 |
| Dec 31, 2019 | 4.89 | 1.10 |
| Dec 31, 2018 | 6.07 | 1.15 |
| Dec 31, 2017 | 4.29 | 1.15 |
| Dec 31, 2016 | 4.42 | 1.12 |
| Dec 31, 2015 | 4.48 | 1.25 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).