Operating Profit Margin
since 2015
Calculation
Etsy Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income (loss) from operations1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 20.00% | = | 100 | × | 465,732) | ÷ | 2,329,114) |
| Dec 31, 2020 | 24.57% | = | 100 | × | 424,009) | ÷ | 1,725,625) |
| Dec 31, 2019 | 10.85% | = | 100 | × | 88,761) | ÷ | 818,379) |
| Dec 31, 2018 | 12.39% | = | 100 | × | 74,786) | ÷ | 603,693) |
| Dec 31, 2017 | 2.70% | = | 100 | × | 11,896) | ÷ | 441,231) |
| Dec 31, 2016 | 4.82% | = | 100 | × | 17,577) | ÷ | 364,967) |
| Dec 31, 2015 | -0.69% | = | 100 | × | (1,884) | ÷ | 273,499) |
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
The financial trajectory shows a consistent transition from operational losses to substantial profitability between 2015 and 2021. This period is characterized by significant revenue expansion and an overall increase in operational efficiency.
- Operating Margin Progression
- An initial operating loss in 2015, represented by a margin of -0.69%, was reversed by 2016 as the margin climbed to 4.82%. Following a brief dip to 2.70% in 2017, a strong upward trend emerged, with margins reaching double digits in 2018 and 2019. The profitability peaked in 2020 at 24.57% before normalizing to 20.00% in 2021.
- Revenue and Operational Leverage
- Revenue grew from US$ 273.5 million in 2015 to US$ 2.33 billion by 2021. The expansion of the operating profit margin alongside this revenue growth indicates strong operating leverage, where the company successfully scaled its operations while managing the growth of its operating expenses.
- Analysis of the 2020-2021 Period
- The most significant surge in operational performance occurred in 2020, where income from operations increased more than fivefold compared to 2019. While revenue continued to rise in 2021, the slight compression of the operating profit margin from 24.57% to 20.00% suggests an increase in operating costs or a shift in the expense structure during that fiscal year.
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Comparison to Competitors
Etsy Inc., operating profit margin, long-term trends, comparison to competitors
| Etsy Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | |
|---|---|---|---|---|
| Dec 31, 2021 | 20.00% | 5.30% | 13.84% | 10.77% |
| Dec 31, 2020 | 24.57% | 5.93% | 14.37% | 8.75% |
| Dec 31, 2019 | 10.85% | 5.18% | 14.35% | 5.63% |
| Dec 31, 2018 | 12.39% | 5.33% | 14.55% | 9.60% |
| Dec 31, 2017 | 2.70% | 2.31% | 14.19% | 8.99% |
| Dec 31, 2016 | 4.82% | 3.08% | 13.30% | 8.41% |
| Dec 31, 2015 | -0.69% | 2.09% | 12.59% | 8.52% |
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).