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 Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Adjustments to Financial Statements for Operating Leases

Etsy Inc., adjustments to financial statements

US$ in thousands

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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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 24,019 18,086
Total assets (adjusted) 3,831,809 2,404,489 1,542,352 925,870 623,669
Adjustment to Total Debt
Total debt (as reported) 2,388,119 1,115,815 847,012 342,456 69,962
Add: Operating lease liability (before adoption of FASB Topic 842)2 24,019 18,086
Add: Operating lease obligations, current (included in Other current liabilities) 4,018 4,516 4,134
Add: Operating lease obligations, net of current portion (included in Other liabilities) 43,746 17,202 22,322
Total debt (adjusted) 2,435,883 1,137,533 873,468 366,475 88,048

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).

1, 2 Equal to total present value of future operating lease payments.


Etsy Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Etsy Inc., adjusted financial ratios

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Total Asset Turnover1
Reported total asset turnover 0.61 0.72 0.53 0.67 0.73
Adjusted total asset turnover 0.61 0.72 0.53 0.65 0.71
Debt to Equity2
Reported debt to equity 3.80 1.50 2.08 0.85 0.18
Adjusted debt to equity 3.87 1.53 2.15 0.91 0.22
Return on Assets3 (ROA)
Reported ROA 12.88% 14.52% 6.22% 8.59% 13.51%
Adjusted ROA 12.88% 14.52% 6.22% 8.37% 13.12%

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 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Etsy Inc. adjusted debt to equity ratio improved from 2019 to 2020 but then deteriorated significantly 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 but then slightly deteriorated 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 Operating Leases
Selected Financial Data (US$ in thousands)
Revenue 2,329,114 1,725,625 818,379 603,693 441,231
Adjusted total assets 3,831,809 2,404,489 1,542,352 925,870 623,669
Activity Ratio
Adjusted total asset turnover2 0.61 0.72 0.53 0.65 0.71

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 ÷ 3,831,809 = 0.61

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 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.

Adjusted Debt to Equity

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 debt 2,388,119 1,115,815 847,012 342,456 69,962
Stockholders’ equity 628,619 742,424 406,634 400,898 396,894
Solvency Ratio
Debt to equity1 3.80 1.50 2.08 0.85 0.18
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt 2,435,883 1,137,533 873,468 366,475 88,048
Stockholders’ equity 628,619 742,424 406,634 400,898 396,894
Solvency Ratio
Adjusted debt to equity2 3.87 1.53 2.15 0.91 0.22

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 Debt to equity = Total debt ÷ Stockholders’ equity
= 2,388,119 ÷ 628,619 = 3.80

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 2,435,883 ÷ 628,619 = 3.87

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Etsy Inc. adjusted debt-to-equity ratio improved from 2019 to 2020 but then deteriorated significantly 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 for Operating Leases
Selected Financial Data (US$ in thousands)
Net income 493,507 349,246 95,894 77,491 81,800
Adjusted total assets 3,831,809 2,404,489 1,542,352 925,870 623,669
Profitability Ratio
Adjusted ROA2 12.88% 14.52% 6.22% 8.37% 13.12%

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 ÷ 3,831,809 = 12.88%

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 but then slightly deteriorated from 2020 to 2021.