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
Quarterly Data

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 (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2022 — = -26.21% × —
Jun 30, 2022 70.66% = 11.39% × 6.21
Mar 31, 2022 64.39% = 11.64% × 5.53
Dec 31, 2021 78.51% = 12.88% × 6.10
Sep 30, 2021 90.04% = 13.72% × 6.56
Jun 30, 2021 90.87% = 14.66% × 6.20
Mar 31, 2021 70.27% = 19.24% × 3.65
Dec 31, 2020 47.04% = 14.52% × 3.24
Sep 30, 2020 34.80% = 10.48% × 3.32
Jun 30, 2020 29.58% = 8.80% × 3.36
Mar 31, 2020 18.89% = 5.06% × 3.73
Dec 31, 2019 23.58% = 6.22% × 3.79
Sep 30, 2019 27.19% = 7.06% × 3.85
Jun 30, 2019 25.08% = 10.86% × 2.31
Mar 31, 2019 22.88% = 9.79% × 2.34
Dec 31, 2018 19.33% = 8.59% × 2.25
Sep 30, 2018 20.52% = 8.93% × 2.30
Jun 30, 2018 23.48% = 10.04% × 2.34
Mar 31, 2018 24.76% = 10.94% × 2.26
Dec 31, 2017 20.61% = 13.51% × 1.53
Sep 30, 2017 — = — × 1.65
Jun 30, 2017 — = — × 1.80
Mar 31, 2017 — = — × 1.80

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

Three-Component Disaggregation of ROE

Etsy Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2022 — = -25.94% × 1.01 × —
Jun 30, 2022 70.66% = 17.01% × 0.67 × 6.21
Mar 31, 2022 64.39% = 18.49% × 0.63 × 5.53
Dec 31, 2021 78.51% = 21.19% × 0.61 × 6.10
Sep 30, 2021 90.04% = 21.55% × 0.64 × 6.56
Jun 30, 2021 90.87% = 22.45% × 0.65 × 6.20
Mar 31, 2021 70.27% = 23.46% × 0.82 × 3.65
Dec 31, 2020 47.04% = 20.24% × 0.72 × 3.24
Sep 30, 2020 34.80% = 16.83% × 0.62 × 3.32
Jun 30, 2020 29.58% = 13.78% × 0.64 × 3.36
Mar 31, 2020 18.89% = 8.76% × 0.58 × 3.73
Dec 31, 2019 23.58% = 11.72% × 0.53 × 3.79
Sep 30, 2019 27.19% = 14.14% × 0.50 × 3.85
Jun 30, 2019 25.08% = 15.83% × 0.69 × 2.31
Mar 31, 2019 22.88% = 14.74% × 0.66 × 2.34
Dec 31, 2018 19.33% = 12.84% × 0.67 × 2.25
Sep 30, 2018 20.52% = 15.00% × 0.60 × 2.30
Jun 30, 2018 23.48% = 17.52% × 0.57 × 2.34
Mar 31, 2018 24.76% = 20.46% × 0.53 × 2.26
Dec 31, 2017 20.61% = 18.54% × 0.73 × 1.53
Sep 30, 2017 — = — × — × 1.65
Jun 30, 2017 — = — × — × 1.80
Mar 31, 2017 — = — × — × 1.80

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

Two-Component Disaggregation of ROA

Etsy Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2022 -26.21% = -25.94% × 1.01
Jun 30, 2022 11.39% = 17.01% × 0.67
Mar 31, 2022 11.64% = 18.49% × 0.63
Dec 31, 2021 12.88% = 21.19% × 0.61
Sep 30, 2021 13.72% = 21.55% × 0.64
Jun 30, 2021 14.66% = 22.45% × 0.65
Mar 31, 2021 19.24% = 23.46% × 0.82
Dec 31, 2020 14.52% = 20.24% × 0.72
Sep 30, 2020 10.48% = 16.83% × 0.62
Jun 30, 2020 8.80% = 13.78% × 0.64
Mar 31, 2020 5.06% = 8.76% × 0.58
Dec 31, 2019 6.22% = 11.72% × 0.53
Sep 30, 2019 7.06% = 14.14% × 0.50
Jun 30, 2019 10.86% = 15.83% × 0.69
Mar 31, 2019 9.79% = 14.74% × 0.66
Dec 31, 2018 8.59% = 12.84% × 0.67
Sep 30, 2018 8.93% = 15.00% × 0.60
Jun 30, 2018 10.04% = 17.52% × 0.57
Mar 31, 2018 10.94% = 20.46% × 0.53
Dec 31, 2017 13.51% = 18.54% × 0.73
Sep 30, 2017 — = — × —
Jun 30, 2017 — = — × —
Mar 31, 2017 — = — × —

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2022 is the decrease in profitability measured by net profit margin ratio.