Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Paying user area
Try for free
Etsy Inc. pages available for free this week:
- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2015
- Current Ratio since 2015
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Etsy Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Liquidity Ratios (Summary)
Etsy Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Current Ratio Trends
- The current ratio exhibited a generally high level throughout the analyzed periods, indicating strong short-term liquidity. Starting at 4.38 in the first quarter of 2017, it showed minor fluctuations but remained above 4.0 until early 2020. There was a noticeable peak in March 2018 at 6.62 and another peak in June 2021 at 6.61. However, from 2021 onward, the current ratio declined significantly, reaching values around 2.3 by mid-2022, indicating a reduction in current assets relative to liabilities over time.
- Quick Ratio Patterns
- The quick ratio, reflecting liquidity excluding inventory, followed a similar trajectory to the current ratio, though consistently somewhat lower. It started at 3.71 in March 2017 and peaked at 5.94 in March 2018 and 6.15 in June 2021, showing strong liquid asset coverage of current liabilities during these peaks. From late 2021 to mid-2022, the quick ratio dropped considerably to levels near 2.1, displaying a decrease in easily liquidatable assets relative to short-term obligations.
- Cash Ratio Fluctuations
- The cash ratio, measuring the most liquid assets against current liabilities, also showed high values at the start, beginning at 3.4 in the first quarter of 2017. There were significant peaks at 5.64 in March 2018 and 6.1 in June 2021. Similar to the other liquidity ratios, a declining trend was observable starting in late 2021 through mid-2022, with values reducing to about 2.1. This decline suggests a reduction in readily available cash or cash equivalents as a proportion of current liabilities.
- Overall Liquidity Insights
- All three liquidity ratios demonstrated strong liquidity positions through most of the period, with notable peaks around early 2018 and mid-2021. A marked decline in liquidity ratios occurred starting in late 2021, indicating a tightening of short-term financial flexibility. Despite this decrease, liquidity remains above 2.0 in all three ratios, suggesting the company maintains the ability to cover its short-term obligations, albeit with less cushion than in previous years.
Current Ratio
Etsy Inc., current ratio calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Current ratio1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | ||||||||||||||||||||||||||||||
| Home Depot Inc. | ||||||||||||||||||||||||||||||
| Lowe’s Cos. Inc. | ||||||||||||||||||||||||||||||
| TJX Cos. Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Current assets exhibited an overall increasing trend over the observed periods, starting at approximately 355 million USD in March 2017 and rising notably to a peak of around 2.69 billion USD by June 2021. This growth was marked by significant surges particularly between early 2018 and late 2020. However, after reaching the peak in mid-2021, current assets showed a sharp decline to about 1.08 billion USD by March 2022, followed by a stabilization near 1.35 billion USD toward the end of the period.
- Current Liabilities
- Current liabilities generally increased alongside current assets but at a more moderate pace. Beginning at roughly 81 million USD in early 2017, liabilities rose steadily, with some fluctuations, peaking near 615 million USD by March 2022. Notably, there was a marked increase during 2020, reaching nearly 455 million USD by December 2020, followed by some volatility but a continued upward movement into 2022.
- Current Ratio
- The current ratio showed considerable variability throughout the period. It started at a strong liquidity position above 4.2 in early 2017, reaching highs exceeding 6.5 during several quarters from 2018 through 2021, indicating a significant excess of current assets relative to current liabilities during those times. However, there was a pronounced decline starting in mid-2021, with the ratio dropping sharply to around 2.2 by mid-2022. Despite this decline, the ratio remained above 2, suggesting that current assets continued to exceed liabilities by a comfortable margin, though the liquidity cushion was reduced compared to earlier years.
- Insights and Patterns
- The financial data reflects a period of robust growth in current assets, implying expansion and increased resource availability. The simultaneous rise in current liabilities suggests increased obligations, which is typical in growing companies investing in working capital. The fluctuations in the current ratio indicate changing liquidity positions, with the company maintaining strong short-term solvency for most of the analyzed timeframe. The decline in liquidity starting mid-2021 may warrant closer monitoring to ensure adequate liquidity management in the future. Overall, the financial trend points to significant scaling activity, balanced by rising current liabilities, and a recent consolidation or normalization in asset and liability levels.
Quick Ratio
Etsy Inc., quick ratio calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||||||
| Short-term investments | ||||||||||||||||||||||||||||||
| Accounts receivable, net of expected credit losses | ||||||||||||||||||||||||||||||
| Total quick assets | ||||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Quick ratio1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | ||||||||||||||||||||||||||||||
| Home Depot Inc. | ||||||||||||||||||||||||||||||
| Lowe’s Cos. Inc. | ||||||||||||||||||||||||||||||
| TJX Cos. Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets have shown considerable growth over the observed period. From March 2017 to the end of 2017, the assets increased steadily from approximately 301 million to 374 million US dollars. A significant jump is seen in the first quarter of 2018, where the assets nearly doubled compared to the previous year, reaching over 630 million US dollars. This elevated level was generally maintained throughout 2018 and 2019 with some fluctuations, including peaks near 864 million and 832 million in late 2019. The sharpest growth occurs starting in the first quarter of 2020, coinciding with a rise to over 1.5 billion by the third quarter and culminating at a peak of nearly 2.5 billion by mid-2021. After this peak, there was a pronounced decline during the last two quarters of 2021 and through 2022, bringing the value down to slightly above 1 billion by the third quarter of 2022.
- Current Liabilities
- Current liabilities increased consistently over the entire period, albeit at a generally slower and steadier pace compared to total quick assets. Starting from about 81 million in March 2017, liabilities rose gradually to exceed 112 million by the end of 2018. Through 2019 and early 2020, liabilities fluctuated somewhat but overall trended upward, reaching around 454 million by the end of 2020. During 2021, liabilities continued an upward trajectory, peaking near 615 million in the third quarter, before declining somewhat in 2022 to approximately 497 million by the third quarter.
- Quick Ratio
- The quick ratio exhibited notable variability throughout the period, reflecting changes in liquidity management relative to current liabilities. Starting at a relatively high level above 3.5 in 2017, the ratio increased substantially in early 2018, peaking near 5.9, indicative of a strong liquidity position. After some oscillation during 2018 and 2019, with values mostly between 3.7 and 5.6, the ratio declined since early 2020 where it reached the mid-5s. It then experienced fluctuations in 2020 and 2021, with a steep rise to above 6.1 by mid-2021, signaling exceptional short-term financial strength. However, a sharp decline ensued thereafter, with the quick ratio dropping below 2.1 during 2022, reflecting a relative tightening of liquidity compared to prior years.
- Overall Analysis
- The financial data indicates strong growth in quick assets relative to current liabilities until mid-2021, enabling high liquidity ratios during this period. The peak in quick assets and liquidity ratios in 2020-2021 coincide with a period of heightened financial resources. Subsequently, the sharp contraction in quick assets and the decline in quick ratio through 2022 suggest a reduction in liquid resource buffers or increased liabilities management. Despite the decline, liquidity ratios remain above 1, indicating that current assets continue to exceed current liabilities, but the margin has narrowed substantially compared to the previous peak years. This trend warrants attention to ensure ongoing short-term financial stability.
Cash Ratio
Etsy Inc., cash ratio calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||||||
| Short-term investments | ||||||||||||||||||||||||||||||
| Total cash assets | ||||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Cash ratio1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | ||||||||||||||||||||||||||||||
| Home Depot Inc. | ||||||||||||||||||||||||||||||
| Lowe’s Cos. Inc. | ||||||||||||||||||||||||||||||
| TJX Cos. Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets show a generally upward trend from March 31, 2017, through September 30, 2022, indicating a significant increase in liquidity over the period. Starting at approximately $276 million in early 2017, the asset base grew steadily, with some periodic fluctuations. Notably, there was a sharp increase between the first quarter of 2020 and the end of 2021, peaking around $2.49 billion by mid-2021. After this peak, the amount declined substantially in 2022, falling back to just over $1 billion by the third quarter. Despite this decline, the end values remain higher than those observed in the 2017-2019 period.
- Current liabilities
- Current liabilities increased consistently over the entire period, starting from approximately $81 million in the first quarter of 2017 and reaching roughly $497 million by September 2022. The growth in liabilities was relatively steady, with some acceleration noticed in 2020 and 2021. The increase in liabilities outpaced the initial growth in cash assets during the earlier years but was proportionate to the high cash asset levels during 2020 and 2021. In 2022, current liabilities decreased somewhat from their peak, mirroring the reduction in cash assets but still remaining significantly elevated compared to the beginning of the period.
- Cash ratio
- The cash ratio, which measures the company's ability to cover current liabilities with cash assets, demonstrates considerable variation across the examined quarters. Initially, it hovered above 3.0, indicating strong liquidity relative to liabilities. The ratio peaked markedly in early 2018 and again in mid-2021, reaching values above 6.0, reflecting periods where cash assets substantially exceeded current liabilities. However, the ratio declined significantly in 2022, falling to slightly above 2.0 by the end of the third quarter. This decrease suggests a relative tightening in liquidity, although the ratio remains at a conservative level indicating the company retains more than twice the cash necessary to cover liabilities.