Debt to Equity
since 2015
Calculation
Etsy Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Debt and finance lease obligations1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 3.80 | = | 2,388,119) | ÷ | 628,619) |
| Dec 31, 2020 | 1.50 | = | 1,115,815) | ÷ | 742,424) |
| Dec 31, 2019 | 2.08 | = | 847,012) | ÷ | 406,634) |
| Dec 31, 2018 | 0.85 | = | 342,456) | ÷ | 400,898) |
| Dec 31, 2017 | 0.18 | = | 69,962) | ÷ | 396,894) |
| Dec 31, 2016 | 0.20 | = | 69,485) | ÷ | 344,757) |
| Dec 31, 2015 | 0.20 | = | 64,985) | ÷ | 330,498) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 US$ in thousands
Between 2015 and 2021, a substantial shift in capital structure occurred, characterized by an aggressive increase in total debt relative to stockholders' equity. While a conservative leverage profile was maintained during the initial three years of the period, a significant pivot occurred starting in 2018, leading to a high-leverage position by the end of 2021.
- Debt and Finance Lease Obligations
- Total obligations remained relatively stable between 2015 and 2017, remaining below US$ 70 million. A sharp escalation began in 2018, with debt rising to US$ 342.5 million, and continuing an upward trajectory to reach US$ 2.39 billion by December 31, 2021. This represents a nearly 37-fold increase in total obligations over the six-year span from 2015 to 2021.
- Stockholders' Equity
- Equity experienced steady, incremental growth from 2015 through 2019, rising from US$ 330.5 million to US$ 406.6 million. A notable peak was reached in 2020 at US$ 742.4 million, followed by a contraction to US$ 628.6 million in 2021. This trend indicates that equity growth was insufficient to offset the rapid accumulation of debt obligations.
- Debt to Equity Ratio
- The ratio remained low and consistent, ranging between 0.18 and 0.20 from 2015 to 2017. A significant inflection point occurred in 2018 as the ratio climbed to 0.85, subsequently surging to 2.08 in 2019. Despite a temporary reduction to 1.50 in 2020—driven by the spike in stockholders' equity—the ratio peaked at 3.80 in 2021, signifying that total debt was nearly four times the value of stockholders' equity by the conclusion of the period.
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Comparison to Competitors
Etsy Inc., debt to equity, long-term trends, comparison to competitors
| Etsy Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 3.80 | 0.35 | 11.29 | 15.16 | 1.04 |
| Dec 31, 2020 | 1.50 | 0.34 | — | 9.79 | 0.38 |
| Dec 31, 2019 | 2.08 | 0.38 | — | 4.45 | 0.44 |
| Dec 31, 2018 | 0.85 | 0.54 | 18.59 | 2.89 | 0.43 |
| Dec 31, 2017 | 0.18 | 0.89 | 5.45 | 2.44 | 0.49 |
| Dec 31, 2016 | 0.20 | 0.40 | 3.37 | 1.65 | 0.38 |
| Dec 31, 2015 | 0.20 | 0.62 | 1.84 | 1.14 | 0.38 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Etsy Inc., debt to equity, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Etsy Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Dec 31, 2021 | 3.80 | 0.77 |
| Dec 31, 2020 | 1.50 | 0.86 |
| Dec 31, 2019 | 2.08 | 1.03 |
| Dec 31, 2018 | 0.85 | 1.24 |
| Dec 31, 2017 | 0.18 | 1.54 |
| Dec 31, 2016 | 0.20 | 1.15 |
| Dec 31, 2015 | 0.20 | 1.04 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Industry (Consumer Discretionary)
Etsy Inc., debt to equity, long-term trends, comparison to industry (consumer discretionary)
| Etsy Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2021 | 3.80 | 1.41 |
| Dec 31, 2020 | 1.50 | 2.17 |
| Dec 31, 2019 | 2.08 | 2.60 |
| Dec 31, 2018 | 0.85 | 2.59 |
| Dec 31, 2017 | 0.18 | 2.55 |
| Dec 31, 2016 | 0.20 | 2.21 |
| Dec 31, 2015 | 0.20 | 1.88 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).