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 Investments

Microsoft Excel

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Etsy Inc., adjustment to net income

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income (as reported) 493,507 349,246 95,894 77,491 81,800
Add: Unrealized gains (losses) on marketable securities, net of tax (762) 182 192 (35) 47
Net income (adjusted) 492,745 349,428 96,086 77,456 81,847

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Etsy Inc., adjusted profitability ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 21.19% 20.24% 11.72% 12.84% 18.54%
Adjusted net profit margin 21.16% 20.25% 11.74% 12.83% 18.55%
Return on Equity (ROE)
Reported ROE 78.51% 47.04% 23.58% 19.33% 20.61%
Adjusted ROE 78.39% 47.07% 23.63% 19.32% 20.62%
Return on Assets (ROA)
Reported ROA 12.88% 14.52% 6.22% 8.59% 13.51%
Adjusted ROA 12.86% 14.53% 6.23% 8.59% 13.52%

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).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Etsy Inc. adjusted net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Etsy Inc. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Etsy Inc. adjusted ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Etsy Inc., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

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
Revenue 2,329,114 1,725,625 818,379 603,693 441,231
Profitability Ratio
Net profit margin1 21.19% 20.24% 11.72% 12.84% 18.54%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income 492,745 349,428 96,086 77,456 81,847
Revenue 2,329,114 1,725,625 818,379 603,693 441,231
Profitability Ratio
Adjusted net profit margin2 21.16% 20.25% 11.74% 12.83% 18.55%

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 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 493,507 ÷ 2,329,114 = 21.19%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 492,745 ÷ 2,329,114 = 21.16%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Etsy Inc. adjusted net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income 492,745 349,428 96,086 77,456 81,847
Stockholders’ equity 628,619 742,424 406,634 400,898 396,894
Profitability Ratio
Adjusted ROE2 78.39% 47.07% 23.63% 19.32% 20.62%

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 × Adjusted net income ÷ Stockholders’ equity
= 100 × 492,745 ÷ 628,619 = 78.39%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Etsy Inc. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.

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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income 492,745 349,428 96,086 77,456 81,847
Total assets 3,831,809 2,404,489 1,542,352 901,851 605,583
Profitability Ratio
Adjusted ROA2 12.86% 14.53% 6.23% 8.59% 13.52%

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).

2021 Calculations

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

2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 492,745 ÷ 3,831,809 = 12.86%

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