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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Etsy Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2021 78.51% = 12.88% × 6.10
Dec 31, 2020 47.04% = 14.52% × 3.24
Dec 31, 2019 23.58% = 6.22% × 3.79
Dec 31, 2018 19.33% = 8.59% × 2.25
Dec 31, 2017 20.61% = 13.51% × 1.53

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).

The primary reason for the increase in return on equity ratio (ROE) over 2021 year is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Etsy Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 78.51% = 21.19% × 0.61 × 6.10
Dec 31, 2020 47.04% = 20.24% × 0.72 × 3.24
Dec 31, 2019 23.58% = 11.72% × 0.53 × 3.79
Dec 31, 2018 19.33% = 12.84% × 0.67 × 2.25
Dec 31, 2017 20.61% = 18.54% × 0.73 × 1.53

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).

The primary reason for the increase in return on equity ratio (ROE) over 2021 year is the increase in financial leverage ratio.

Five-Component Disaggregation of ROE

Etsy Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 78.51% = 1.05 × 0.98 × 20.67% × 0.61 × 6.10
Dec 31, 2020 47.04% = 0.95 × 0.90 × 23.63% × 0.72 × 3.24
Dec 31, 2019 23.58% = 1.19 × 0.77 × 12.83% × 0.53 × 3.79
Dec 31, 2018 19.33% = 1.41 × 0.71 × 12.80% × 0.67 × 2.25
Dec 31, 2017 20.61% = 2.54 × 0.74 × 9.83% × 0.73 × 1.53

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).

The primary reason for the increase in return on equity ratio (ROE) over 2021 year is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

Etsy Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2021 12.88% = 21.19% × 0.61
Dec 31, 2020 14.52% = 20.24% × 0.72
Dec 31, 2019 6.22% = 11.72% × 0.53
Dec 31, 2018 8.59% = 12.84% × 0.67
Dec 31, 2017 13.51% = 18.54% × 0.73

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2021 year is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Etsy Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2021 12.88% = 1.05 × 0.98 × 20.67% × 0.61
Dec 31, 2020 14.52% = 0.95 × 0.90 × 23.63% × 0.72
Dec 31, 2019 6.22% = 1.19 × 0.77 × 12.83% × 0.53
Dec 31, 2018 8.59% = 1.41 × 0.71 × 12.80% × 0.67
Dec 31, 2017 13.51% = 2.54 × 0.74 × 9.83% × 0.73

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2021 year is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Etsy Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2021 21.19% = 1.05 × 0.98 × 20.67%
Dec 31, 2020 20.24% = 0.95 × 0.90 × 23.63%
Dec 31, 2019 11.72% = 1.19 × 0.77 × 12.83%
Dec 31, 2018 12.84% = 1.41 × 0.71 × 12.80%
Dec 31, 2017 18.54% = 2.54 × 0.74 × 9.83%

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).

The primary reason for the increase in net profit margin ratio over 2021 year is the increase in effect of taxes measured by tax burden ratio.