Etsy Inc. (NASDAQ:ETSY)

Net Operating Profit After Taxes (NOPAT)

The net operating profit after taxes shows a consistent upward trend from 2017 to 2021. Starting at 47,642 thousand US dollars in 2017, it increased steadily each year to reach 413,095 thousand US dollars in 2021. Notably, the most significant jump occurred between 2019 and 2020, where NOPAT nearly quadrupled, indicating a major improvement in operating profitability during that period.

Invested Capital

Invested capital has expanded substantially over the five-year period. Beginning at 498,789 thousand US dollars in 2017, the invested capital more than quintupled to 2,842,921 thousand US dollars by 2021. This reflects significant capital investment and growth initiatives undertaken by the company, with the most pronounced increases occurring after 2018, particularly between 2019 and 2021.

Return on Invested Capital (ROIC)

ROIC exhibits variability across the years, starting at 9.55% in 2017 and peaking at 26.45% in 2020. The rate increased sharply from 2019 to 2020, aligning with the substantial rise in NOPAT during the same period. However, in 2021, ROIC declined to 14.53%, which, although lower than the 2020 peak, remains above the initial values observed in 2017 and 2018. This suggests a temporary fluctuation in capital efficiency or profitability following rapid growth.

Summary

The data indicates a company experiencing rapid growth in both profitability and capital investment from 2017 through 2021. The surge in NOPAT and invested capital demonstrates expansion and scaling of operations. The ROIC increase through 2020 suggests improved efficiency in generating returns from capital; however, the decline in 2021 points to a potential moderation in capital returns despite continued growth in NOPAT. Overall, the financial trends reflect aggressive growth with some variability in profitability efficiency in the latest year.

Operating Profit Margin (OPM)

The operating profit margin demonstrates an overall increasing trend from 10.46% in 2017 to a peak of 24.12% in 2020, indicating improved operational efficiency and profitability. However, there is a noticeable decline in 2021 to 20.72%, suggesting some reduction in profit margin relative to sales after the previous year's peak.

Turnover of Capital (TO)

The turnover of capital fluctuates over the period without a clear sustained trend. Starting at 0.89 in 2017, it rises to 1.13 in 2018, decreases to 0.92 in 2019, increases again to 1.16 in 2020, and then declines to 0.82 in 2021. These variations indicate inconsistency in how efficiently the company utilizes its capital to generate revenue.

Effective Cash Tax Rate (CTR)

The metric 1 – Effective Cash Tax Rate decreases steadily from 103.05% in 2017 to 85.58% in 2021. This trend suggests an increasing effective cash tax burden over time, which may impact net profitability and cash flows negatively as a larger proportion of earnings is paid in taxes.

Return on Invested Capital (ROIC)

Return on invested capital shows an increasing pattern from 9.55% in 2017 to a significant peak of 26.45% in 2020, reflecting enhanced efficiency in generating returns from invested capital. However, the ROIC drops sharply in 2021 to 14.53%, which aligns with the decline observed in operating profit margin and could indicate challenges in sustaining high returns.

Net Operating Profit Before Taxes (NOPBT)

The net operating profit before taxes exhibited a strong upward trend over the five-year period. Starting at 46,232 thousand USD in 2017, it increased steadily each year to reach 48,2717 thousand USD in 2021. The most notable jump occurred between 2019 and 2020, with an almost fourfold increase, indicating significant improvements in operational efficiency or scale during that period.

Adjusted Revenue

Adjusted revenue showed a consistent and substantial growth trajectory throughout the years. Beginning at 441,845 thousand USD in 2017, revenue more than quintupled to 2,330,189 thousand USD by the end of 2021. The highest increase was observed between 2019 and 2020, where revenue more than doubled, suggesting successful expansion or increased market demand.

Operating Profit Margin (OPM)

The operating profit margin displayed an overall upward trend with some fluctuations. It increased from 10.46% in 2017 to a peak of 24.12% in 2020, reflecting enhanced profitability relative to revenues. However, in 2021, there was a slight decline to 20.72%, which, while lower than the previous year, remains significantly above the levels observed in 2017 through 2019. This indicates that, despite some margin compression, the company maintained strong operational profitability.

The financial data reveals notable changes and trends over the five-year period from 2017 to 2021.

Adjusted Revenue

The adjusted revenue demonstrated a consistent and significant increase each year. Starting at approximately $442 million in 2017, revenue rose to around $605 million in 2018 and then accelerated to about $819 million in 2019. The growth pace notably increased in 2020, with revenue surpassing $1.7 billion. This upward trend continued in 2021, reaching over $2.3 billion. This pattern indicates a strong and accelerating expansion in the company's core revenue-generating activities over this period.

Invested Capital

Invested capital also showed a continuous growth trend, expanding from roughly $499 million in 2017 to $537 million in 2018. The growth was more pronounced in 2019 and 2020, reaching approximately $888 million and $1.49 billion, respectively. By 2021, invested capital nearly doubled again, significantly increasing to over $2.8 billion. This suggests a considerable and ongoing allocation of resources into the business, likely to support the scale of operations and growth observed in revenue.

Turnover of Capital (TO)

The capital turnover ratio exhibited some variability throughout the period. It started at 0.89 in 2017, indicating that revenue was slightly less than the invested capital at that time. In 2018, the ratio improved to 1.13, reflecting a more efficient use of capital relative to revenue generation. However, the ratio declined to 0.92 in 2019, before rising again to 1.16 in 2020, suggesting improved capital efficiency during that year. In 2021, the turnover ratio fell significantly to 0.82, which may indicate that the rapid investment growth outpaced revenue growth in that year. This decline suggests potential diminishing returns on additional capital invested or a lag in revenue recognition relative to capital increases.

Cash Operating Taxes

The cash operating taxes show a significant increase over the analyzed period. Starting from a negative value of -1,409 thousand US dollars in 2017, it turned positive in 2018 with 5,774 thousand US dollars, and continued to rise steadily to reach 69,622 thousand US dollars by 2021. This upward trend indicates a growing tax cash outflow in absolute terms.

Net Operating Profit Before Taxes (NOPBT)

Net operating profit before taxes exhibits a strong upward trajectory from 46,232 thousand US dollars in 2017 to 482,717 thousand US dollars in 2021. The growth was particularly sharp between 2019 and 2020, where the NOPBT nearly quadrupled from 106,545 thousand to 417,030 thousand US dollars. This suggests substantial improvement in operational profitability over the years.

Effective Cash Tax Rate (CTR)

The effective cash tax rate shows considerable volatility but generally trends upward. It started at a negative value in 2017 (-3.05%), indicating possibly tax refunds or credits, then increased to 7.01% in 2018. The rate dipped to 2.61% in 2019 before rising again to 5.58% in 2020, and then more than doubled to 14.42% by 2021. This pattern suggests fluctuating tax efficiency or changes in tax regulations affecting the company’s cash tax payments relative to its operating profits.