Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Etsy Inc., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 2.18 | 4.17 | 4.89 | 6.07 | 4.29 | |
| Quick ratio | 1.64 | 3.72 | 4.42 | 5.68 | 3.65 | |
| Cash ratio | 1.60 | 3.67 | 4.33 | 5.57 | 3.32 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Etsy Inc. current ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Etsy Inc. quick ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Etsy Inc. cash ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Current Ratio
Etsy Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 1,341,501) | 1,894,781) | 921,038) | 680,289) | 439,264) | |
| Current liabilities | 615,588) | 454,664) | 188,528) | 112,062) | 102,477) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 2.18 | 4.17 | 4.89 | 6.07 | 4.29 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Amazon.com Inc. | 1.14 | 1.05 | 1.10 | — | — | |
| Home Depot Inc. | 1.23 | 1.08 | 1.11 | — | — | |
| Lowe’s Cos. Inc. | 1.19 | 1.01 | 0.98 | — | — | |
| TJX Cos. Inc. | 1.46 | 1.24 | 1.53 | — | — | |
| Current Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 1.17 | 1.06 | 1.10 | — | — | |
| Current Ratio, Industry | ||||||
| Consumer Discretionary | 1.25 | 1.18 | 1.10 | — | — | |
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 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 1,341,501 ÷ 615,588 = 2.18
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Etsy Inc. current ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Quick Ratio
Etsy Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 780,196) | 1,244,099) | 443,293) | 366,985) | 315,442) | |
| Short-term investments | 204,416) | 425,119) | 373,959) | 257,302) | 25,108) | |
| Accounts receivable, net | 27,266) | 22,605) | 15,386) | 12,244) | 33,677) | |
| Total quick assets | 1,011,878) | 1,691,823) | 832,638) | 636,531) | 374,227) | |
| Current liabilities | 615,588) | 454,664) | 188,528) | 112,062) | 102,477) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.64 | 3.72 | 4.42 | 5.68 | 3.65 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Amazon.com Inc. | 0.86 | 0.83 | 0.83 | — | — | |
| Home Depot Inc. | 0.47 | 0.23 | 0.22 | — | — | |
| Lowe’s Cos. Inc. | 0.28 | 0.06 | 0.05 | — | — | |
| TJX Cos. Inc. | 1.01 | 0.50 | 0.61 | — | — | |
| Quick Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 0.77 | 0.68 | 0.65 | — | — | |
| Quick Ratio, Industry | ||||||
| Consumer Discretionary | 0.92 | 0.88 | 0.79 | — | — | |
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 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,011,878 ÷ 615,588 = 1.64
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Etsy Inc. quick ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Cash Ratio
Etsy Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 780,196) | 1,244,099) | 443,293) | 366,985) | 315,442) | |
| Short-term investments | 204,416) | 425,119) | 373,959) | 257,302) | 25,108) | |
| Total cash assets | 984,612) | 1,669,218) | 817,252) | 624,287) | 340,550) | |
| Current liabilities | 615,588) | 454,664) | 188,528) | 112,062) | 102,477) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 1.60 | 3.67 | 4.33 | 5.57 | 3.32 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Amazon.com Inc. | 0.68 | 0.67 | 0.63 | — | — | |
| Home Depot Inc. | 0.34 | 0.12 | 0.11 | — | — | |
| Lowe’s Cos. Inc. | 0.28 | 0.06 | 0.05 | — | — | |
| TJX Cos. Inc. | 0.97 | 0.45 | 0.55 | — | — | |
| Cash Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 0.61 | 0.54 | 0.49 | — | — | |
| Cash Ratio, Industry | ||||||
| Consumer Discretionary | 0.71 | 0.69 | 0.57 | — | — | |
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 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 984,612 ÷ 615,588 = 1.60
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Etsy Inc. cash ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |