Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Etsy Inc., long-term (investment) activity 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).
The financial data reveals several trends across key efficiency ratios over the analyzed periods. These ratios include net fixed asset turnover, total asset turnover, and equity turnover, providing insights into the company's operational efficiency and asset utilization.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a generally increasing trend from March 2017 through June 2021. Initially, the ratio rises steadily from 3.75 in Q1 2017 to a peak of 20.3 in Q2 2021, indicating progressively more efficient use of fixed assets to generate sales. However, after reaching this peak, the ratio declines sharply in subsequent quarters, falling to 9.91 by Q3 2022. This pattern suggests that after a period of significant efficiency gains, there was a notable reduction in fixed asset utilization effectiveness toward the end of the observed period.
- Total Asset Turnover
- The total asset turnover ratio displays a fluctuant but generally modest upward movement over the period. Starting at 0.73 in Q1 2017, the ratio decreases in mid-2017, reaching lows around 0.5 by late 2019. Following these periods, there is a gradual improvement with the ratio climbing back to approximately 0.82 by mid-2021. The ratio dips slightly again toward the end of the data but notably increases to 1.01 by Q3 2022, marking the highest value recorded and suggesting enhanced efficiency in asset utilization overall despite some volatility.
- Equity Turnover
- The equity turnover ratio exhibits a consistent and strong upward trajectory throughout the periods reviewed. Beginning at 1.11 in Q1 2017, this ratio climbs steadily, with minor fluctuations, to reach values above 4.0 by late 2021. The highest recorded value is 4.18 in Q4 2021, indicating a marked increase in the effectiveness of equity capital in generating revenues. There is a slight decline observed in 2022 quarters, yet the values remain significantly elevated compared to earlier years, emphasizing sustained improvement in equity utilization.
Overall, the data illustrates a pattern of improving asset and equity efficiency for the company over the majority of the periods analyzed. The strong upward trends in net fixed asset turnover and equity turnover ratios until 2021 reflect enhanced operational effectiveness. Meanwhile, total asset turnover shows more moderate gains with some variability. The decline in net fixed asset turnover after mid-2021 warrants attention, as it may indicate shifts in asset deployment or sales generation capacity. Nevertheless, the culminating improvements in equity turnover and the record high total asset turnover in late 2022 suggest ongoing positive developments in capital utilization.
Net Fixed Asset Turnover
Etsy Inc., net fixed asset turnover 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) | ||||||||||||||||||||||||||||||
| Revenue | 594,469) | 585,135) | 579,266) | 717,139) | 532,429) | 528,900) | 550,646) | 617,355) | 451,478) | 428,737) | 228,055) | 269,998) | 197,947) | 181,095) | 169,339) | 200,028) | 150,366) | 132,387) | 120,912) | 136,268) | 106,380) | 101,692) | 96,891) | |||||||
| Property and equipment, net of accumulated depreciation and amortization | 249,905) | 261,697) | 271,333) | 275,062) | 198,902) | 105,814) | 107,960) | 112,495) | 118,141) | 126,187) | 134,519) | 144,864) | 153,262) | 128,409) | 131,650) | 120,179) | 119,243) | 117,024) | 116,385) | 117,617) | 124,543) | 129,074) | 127,168) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 9.91 | 9.22 | 8.69 | 8.47 | 11.21 | 20.30 | 18.97 | 15.34 | 11.67 | 8.91 | 6.52 | 5.65 | 4.88 | 5.46 | 4.95 | 5.02 | 4.53 | 4.24 | 4.00 | 3.75 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | 2.83 | 2.80 | 2.84 | 2.93 | 3.11 | 3.32 | 3.45 | 3.41 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 5.92 | 5.83 | 5.73 | 5.35 | 5.27 | 5.10 | 4.94 | 4.84 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 5.03 | 4.97 | 4.95 | 4.68 | 4.57 | 4.32 | 4.00 | 3.86 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 8.84 | 8.46 | 7.46 | 6.38 | 6.67 | 6.61 | 7.08 | 7.83 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Net fixed asset turnover
= (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
÷ Property and equipment, net of accumulated depreciation and amortization
= (594,469 + 585,135 + 579,266 + 717,139)
÷ 249,905 = 9.91
2 Click competitor name to see calculations.
- Revenue Trend
- The revenue exhibits a generally upward trend from March 2017 through December 2021, with some fluctuations. Initially, revenue increased steadily from approximately $96.9 million in March 2017 to $269.998 million by December 2019. A significant surge occurred in 2020, with revenue nearly doubling in some quarters, reaching a peak of $617.355 million in December 2020. Following this peak, revenue experienced a mild decline and fluctuations through 2021 and into late 2022, stabilizing around the $570 million to $720 million range.
- Property and Equipment (Net of Accumulated Depreciation and Amortization)
- There is a noticeable downward trend in net property and equipment values from 2017 through mid-2021, dropping from $127.168 million in March 2017 to $107.96 million by June 2021. However, starting in late 2021, the value rises sharply, peaking at $275.062 million in June 2022, before decreasing moderately towards the end of 2022. This pattern suggests significant investments or acquisitions of fixed assets in 2021 and early 2022, followed by a partial reduction or reevaluation near the end of 2022.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, calculated from December 2017 onwards, depicts an overall increasing efficiency in utilizing fixed assets to generate revenue until December 2021. The ratio starts near 3.75 in December 2017 and escalates markedly to 20.3 by December 2021. This indicates improved asset utilization or higher revenue generation per dollar of fixed assets during this period. Post-2021, the ratio declines visibly, falling to the 8.5 to 9.9 range in 2022, which may reflect either decreased revenue efficiency relative to assets or changes in asset base composition.
- Overall Insights
- The data indicates a period of rapid revenue growth especially during 2020, coinciding with initial declines and subsequent increases in fixed asset holdings. The significant rise in asset base in 2021 and 2022 alongside a decrease in turnover ratio may suggest expansion in capital expenditure or asset acquisitions outpacing revenue growth. The strong improvement in asset turnover up to 2021 reflects improved operational efficiency, but the subsequent decline in 2022 could signal the need for reassessment of asset utilization strategies or a temporary imbalance between asset growth and revenue.
Total Asset Turnover
Etsy Inc., total asset turnover 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) | ||||||||||||||||||||||||||||||
| Revenue | 594,469) | 585,135) | 579,266) | 717,139) | 532,429) | 528,900) | 550,646) | 617,355) | 451,478) | 428,737) | 228,055) | 269,998) | 197,947) | 181,095) | 169,339) | 200,028) | 150,366) | 132,387) | 120,912) | 136,268) | 106,380) | 101,692) | 96,891) | |||||||
| Total assets | 2,450,311) | 3,607,100) | 3,745,175) | 3,831,809) | 3,502,138) | 3,290,416) | 2,497,411) | 2,404,489) | 2,214,505) | 1,762,031) | 1,517,642) | 1,542,352) | 1,499,198) | 1,021,775) | 981,168) | 901,851) | 907,368) | 865,310) | 870,165) | 605,583) | 574,062) | 554,317) | 530,739) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Total asset turnover1 | 1.01 | 0.67 | 0.63 | 0.61 | 0.64 | 0.65 | 0.82 | 0.72 | 0.62 | 0.64 | 0.58 | 0.53 | 0.50 | 0.69 | 0.66 | 0.67 | 0.60 | 0.57 | 0.53 | 0.73 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | 1.17 | 1.16 | 1.16 | 1.12 | 1.20 | 1.23 | 1.30 | 1.20 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 2.02 | 2.04 | 1.95 | 1.87 | 1.88 | 1.88 | 1.91 | 2.15 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 1.93 | 1.92 | 1.84 | 1.92 | 1.68 | 1.55 | 1.62 | 1.83 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 1.52 | 1.50 | 1.25 | 1.04 | 1.06 | 1.27 | 1.45 | 1.73 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Total asset turnover
= (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
÷ Total assets
= (594,469 + 585,135 + 579,266 + 717,139)
÷ 2,450,311 = 1.01
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue has demonstrated a general upward trajectory from March 2017 to December 2021, starting at approximately $96.9 million and reaching over $717 million in the fourth quarter of 2021. Notable growth spikes occurred in 2020, particularly in June and December quarters, where revenue surged substantially likely reflecting increased demand or expanded operations. However, after peaking in late 2021, revenue experienced a decline through 2022, falling to levels around $579 million to $594 million by September 2022. This suggests a possible market adjustment, saturation, or external factor impacting sales during 2022.
- Total Assets Movement
- Total assets grew steadily from $530.7 million in March 2017 to about $3.83 billion by December 2021. This expansion indicates significant investment in assets, potentially to support growing revenue and operations. The asset base more than quadrupled during this period. Contrastingly, in 2022, there was a marked reduction in total assets, dropping sharply to approximately $2.45 billion by September 2022. This decline could signify asset divestitures, impairments, or strategic restructuring within the company.
- Total Asset Turnover Analysis
- The total asset turnover ratio, which measures the efficiency of asset utilization in generating revenue, exhibited variability but generally stayed under 1. The ratio started around 0.73 in late 2017, decreased to a low near 0.5 at the end of 2019, then progressively increased through 2020 and 2021, peaking at 1.01 in September 2022. The rising trend in asset turnover in recent periods indicates improved efficiency in using assets to generate revenue, especially notable in 2021 and 2022, despite the reduction in total asset values.
- Overall Insights
- The data illustrates a period of aggressive growth in both revenue and assets up to late 2021, with operational efficiency improving toward the end of the period. The subsequent decline in both revenue and assets during 2022 suggests a strategic or market-driven shift affecting company scale and resource base. Nevertheless, the asset turnover reaching and surpassing 1.0 in 2022 signifies a strong recovery or optimization phase, where the company is generating higher revenue per unit of asset relative to previous years. These trends highlight a dynamic period characterized by expansion, followed by consolidation and improved asset utilization.
Equity Turnover
Etsy Inc., equity turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Revenue | 594,469) | 585,135) | 579,266) | 717,139) | 532,429) | 528,900) | 550,646) | 617,355) | 451,478) | 428,737) | 228,055) | 269,998) | 197,947) | 181,095) | 169,339) | 200,028) | 150,366) | 132,387) | 120,912) | 136,268) | 106,380) | 101,692) | 96,891) | |||||||
| Stockholders’ equity (deficit) | (606,242) | 581,295) | 676,867) | 628,619) | 533,622) | 530,753) | 683,774) | 742,424) | 666,667) | 524,175) | 406,847) | 406,634) | 389,262) | 442,301) | 420,013) | 400,898) | 394,619) | 370,091) | 384,487) | 396,894) | 348,215) | 308,279) | 295,048) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Equity turnover1 | — | 4.15 | 3.48 | 3.71 | 4.18 | 4.05 | 3.00 | 2.32 | 2.07 | 2.15 | 2.16 | 2.01 | 1.92 | 1.58 | 1.55 | 1.51 | 1.37 | 1.34 | 1.21 | 1.11 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | 3.65 | 3.70 | 3.57 | 3.40 | 3.80 | 3.86 | 4.06 | 4.13 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 142.70 | 69.80 | 80.86 | 40.05 | 81.84 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | — | — | 212.01 | 62.35 | 20.95 | 18.46 | 43.17 | 36.59 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 7.08 | 6.75 | 6.16 | 5.51 | 6.00 | 7.24 | 7.78 | 7.01 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Equity turnover
= (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
÷ Stockholders’ equity (deficit)
= (594,469 + 585,135 + 579,266 + 717,139)
÷ -606,242 = —
2 Click competitor name to see calculations.
The quarterly financial data reveals a general upward trend in revenue over the examined periods, with some fluctuations that may reflect seasonal variations or market conditions. Revenue started at approximately $96.9 million in the first quarter of 2017 and demonstrated consistent growth, reaching a peak of $717.1 million in the fourth quarter of 2021. The most notable acceleration in revenue occurred during 2020, where it surged from $228.1 million in the first quarter to $617.4 million by the end of the year. After this significant increase, revenue showed some volatility in 2022 but remained substantially higher than in earlier periods.
Stockholders’ equity exhibited steady growth from the beginning of 2017 through late 2020, beginning at around $295 million and increasing to over $742 million by the fourth quarter of 2020. This development reflects a strengthening equity base over this timeframe. However, from 2021 onwards, equity values fluctuated more dramatically, showing a decline in late 2021 and early 2022, with a notable shift to a negative equity balance of approximately -$606 million in the third quarter of 2022. This sharp reversal suggests significant changes in the company’s financial structure or substantial losses that eroded equity during this period.
The equity turnover ratio, calculated as revenue divided by stockholders' equity, provides insight into asset utilization and the effectiveness of equity deployment. Data from early 2017 are absent, but from late 2017 onward, the ratio generally increased, indicating improving efficiency or leveraging. The ratio rose from approximately 1.11 in late 2017 to a peak of 4.18 in the fourth quarter of 2021, suggesting that each dollar of equity generated substantially more revenue over time. Yet, the slight decline afterward, with values of about 3.48 and back up to 4.15 in 2022, points to some volatility possibly related to the fluctuations observed in stockholders' equity during the same period.
Overall, the financial trends signify a company experiencing rapid revenue growth, particularly from 2019 through 2021, accompanied by a strengthening equity base up to 2020. However, the latter part of the dataset indicates emerging challenges with equity deteriorating significantly in 2022 despite continued revenue levels that are relatively high. This combination may imply increased liabilities, restructuring, or other financial pressures affecting net equity.
- Revenue
- Consistent growth from $96.9 million in early 2017 to a high of $717.1 million in late 2021, with noticeable acceleration throughout 2020.
- Stockholders’ Equity
- Increase from $295 million in early 2017 to over $742 million by the end of 2020, followed by volatility and a sharp decline to negative equity of approximately -$606 million by the third quarter of 2022.
- Equity Turnover Ratio
- Improvement from around 1.11 in late 2017 to a peak of 4.18 in late 2021, indicating enhanced efficiency in generating revenue from equity, though accompanied by some variation in 2022.