Stock Analysis on Net
Stock Analysis on Net

Etsy Inc. (NASDAQ:ETSY)

This company has been moved to the archive! The financial data has not been updated since November 3, 2022.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Etsy Inc., balance sheet: goodwill and intangible assets

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Goodwill 1,371,064 140,810 138,731 37,482 38,541
Trademark 342,753 79,400 79,400 — —
Customer relationships 278,311 93,500 93,500 — —
Referral agreement 36,109 39,042 35,715 34,595 —
Technology — — 7,200 7,200 7,200
Patent licenses 3,149 1,212 332 172 —
Intangible assets, gross book value 660,322 213,154 216,147 41,967 7,200
Accumulated amortization (53,152) (25,705) (16,911) (7,378) (3,100)
Intangible assets, net book value 607,170 187,449 199,236 34,589 4,100
Goodwill and intangible assets 1,978,234 328,259 337,967 72,071 42,641

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).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Etsy Inc. goodwill increased from 2019 to 2020 and from 2020 to 2021.
Intangible assets, net book value Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Etsy Inc. intangible assets, net book value decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Etsy Inc. goodwill and intangible assets decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Adjustments to Financial Statements: Removal of Goodwill

Etsy Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 3,831,809 2,404,489 1,542,352 901,851 605,583
Less: Goodwill 1,371,064 140,810 138,731 37,482 38,541
Total assets (adjusted) 2,460,745 2,263,679 1,403,621 864,369 567,042
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 628,619 742,424 406,634 400,898 396,894
Less: Goodwill 1,371,064 140,810 138,731 37,482 38,541
Stockholders’ equity (adjusted) (742,445) 601,614 267,903 363,416 358,353

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).

Etsy Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Etsy Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Total Asset Turnover
Reported total asset turnover 0.61 0.72 0.53 0.67 0.73
Adjusted total asset turnover 0.95 0.76 0.58 0.70 0.78
Financial Leverage
Reported financial leverage 6.10 3.24 3.79 2.25 1.53
Adjusted financial leverage — 3.76 5.24 2.38 1.58
Return on Equity (ROE)
Reported ROE 78.51% 47.04% 23.58% 19.33% 20.61%
Adjusted ROE — 58.05% 35.79% 21.32% 22.83%
Return on Assets (ROA)
Reported ROA 12.88% 14.52% 6.22% 8.59% 13.51%
Adjusted ROA 20.06% 15.43% 6.83% 8.97% 14.43%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Etsy Inc. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Etsy Inc. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.

Etsy Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Revenue 2,329,114 1,725,625 818,379 603,693 441,231
Total assets 3,831,809 2,404,489 1,542,352 901,851 605,583
Activity Ratio
Total asset turnover1 0.61 0.72 0.53 0.67 0.73
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenue 2,329,114 1,725,625 818,379 603,693 441,231
Adjusted total assets 2,460,745 2,263,679 1,403,621 864,369 567,042
Activity Ratio
Adjusted total asset turnover2 0.95 0.76 0.58 0.70 0.78

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).

2021 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 2,329,114 ÷ 3,831,809 = 0.61

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 2,329,114 ÷ 2,460,745 = 0.95

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Etsy Inc. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets 3,831,809 2,404,489 1,542,352 901,851 605,583
Stockholders’ equity 628,619 742,424 406,634 400,898 396,894
Solvency Ratio
Financial leverage1 6.10 3.24 3.79 2.25 1.53
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 2,460,745 2,263,679 1,403,621 864,369 567,042
Adjusted stockholders’ equity (742,445) 601,614 267,903 363,416 358,353
Solvency Ratio
Adjusted financial leverage2 — 3.76 5.24 2.38 1.58

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).

2021 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 3,831,809 ÷ 628,619 = 6.10

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 2,460,745 ÷ -742,445 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income 493,507 349,246 95,894 77,491 81,800
Stockholders’ equity 628,619 742,424 406,634 400,898 396,894
Profitability Ratio
ROE1 78.51% 47.04% 23.58% 19.33% 20.61%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income 493,507 349,246 95,894 77,491 81,800
Adjusted stockholders’ equity (742,445) 601,614 267,903 363,416 358,353
Profitability Ratio
Adjusted ROE2 — 58.05% 35.79% 21.32% 22.83%

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).

2021 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 493,507 ÷ 628,619 = 78.51%

2 Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 493,507 ÷ -742,445 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income 493,507 349,246 95,894 77,491 81,800
Total assets 3,831,809 2,404,489 1,542,352 901,851 605,583
Profitability Ratio
ROA1 12.88% 14.52% 6.22% 8.59% 13.51%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income 493,507 349,246 95,894 77,491 81,800
Adjusted total assets 2,460,745 2,263,679 1,403,621 864,369 567,042
Profitability Ratio
Adjusted ROA2 20.06% 15.43% 6.83% 8.97% 14.43%

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).

2021 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 493,507 ÷ 3,831,809 = 12.88%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 493,507 ÷ 2,460,745 = 20.06%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Etsy Inc. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.