Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Etsy Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Etsy Inc. gross profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Etsy Inc. operating profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Etsy Inc. net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Etsy Inc. ROE improved from 2019 to 2020 and from 2020 to 2021. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Etsy Inc. ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Gross Profit Margin
Etsy Inc., gross profit margin 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) | ||||||
| Gross profit | 1,674,602) | 1,260,880) | 547,343) | 412,931) | 290,245) | |
| Revenue | 2,329,114) | 1,725,625) | 818,379) | 603,693) | 441,231) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 71.90% | 73.07% | 66.88% | 68.40% | 65.78% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Amazon.com Inc. | 42.03% | 39.57% | 40.99% | — | — | |
| Home Depot Inc. | 33.95% | 34.09% | 34.34% | — | — | |
| Lowe’s Cos. Inc. | 33.01% | 31.80% | 32.12% | — | — | |
| TJX Cos. Inc. | 23.66% | 28.46% | 28.59% | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 1,674,602 ÷ 2,329,114 = 71.90%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Etsy Inc. gross profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Operating Profit Margin
Etsy Inc., operating profit margin 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) | ||||||
| Income from operations | 465,732) | 424,009) | 88,761) | 74,786) | 11,896) | |
| Revenue | 2,329,114) | 1,725,625) | 818,379) | 603,693) | 441,231) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 20.00% | 24.57% | 10.85% | 12.39% | 2.70% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Amazon.com Inc. | 5.30% | 5.93% | 5.18% | — | — | |
| Home Depot Inc. | 13.84% | 14.37% | 14.35% | — | — | |
| Lowe’s Cos. Inc. | 10.77% | 8.75% | 5.63% | — | — | |
| TJX Cos. Inc. | 1.81% | 10.59% | 10.82% | — | — | |
| Operating Profit Margin, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 7.38% | 8.11% | — | — | — | |
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | 8.79% | 6.48% | — | — | — | |
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
Operating profit margin = 100 × Income from operations ÷ Revenue
= 100 × 465,732 ÷ 2,329,114 = 20.00%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Etsy Inc. operating profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Net Profit Margin
Etsy Inc., net profit margin 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) | ||||||
| Net income | 493,507) | 349,246) | 95,894) | 77,491) | 81,800) | |
| Revenue | 2,329,114) | 1,725,625) | 818,379) | 603,693) | 441,231) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 21.19% | 20.24% | 11.72% | 12.84% | 18.54% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Amazon.com Inc. | 7.10% | 5.53% | 4.13% | — | — | |
| Home Depot Inc. | 9.74% | 10.20% | 10.28% | — | — | |
| Lowe’s Cos. Inc. | 6.51% | 5.93% | 3.25% | — | — | |
| TJX Cos. Inc. | 0.28% | 7.84% | 7.85% | — | — | |
| Net Profit Margin, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 7.21% | 6.58% | — | — | — | |
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | 9.20% | 5.24% | — | — | — | |
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
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 493,507 ÷ 2,329,114 = 21.19%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Etsy Inc. net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
Return on Equity (ROE)
Etsy Inc., ROE 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) | ||||||
| Net income | 493,507) | 349,246) | 95,894) | 77,491) | 81,800) | |
| Stockholders’ equity | 628,619) | 742,424) | 406,634) | 400,898) | 396,894) | |
| Profitability Ratio | ||||||
| ROE1 | 78.51% | 47.04% | 23.58% | 19.33% | 20.61% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Amazon.com Inc. | 24.13% | 22.84% | 18.67% | — | — | |
| Home Depot Inc. | 390.00% | — | — | — | — | |
| Lowe’s Cos. Inc. | 406.05% | 217.09% | 63.50% | — | — | |
| TJX Cos. Inc. | 1.55% | 55.01% | 60.61% | — | — | |
| ROE, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 35.05% | 40.86% | — | — | — | |
| ROE, Industry | ||||||
| Consumer Discretionary | 34.37% | 25.29% | — | — | — | |
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
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 493,507 ÷ 628,619 = 78.51%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Etsy Inc. ROE improved from 2019 to 2020 and from 2020 to 2021. |
Return on Assets (ROA)
Etsy Inc., ROA 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) | ||||||
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Amazon.com Inc. | 7.93% | 6.64% | 5.14% | — | — | |
| Home Depot Inc. | 18.23% | 21.94% | 25.27% | — | — | |
| Lowe’s Cos. Inc. | 12.49% | 10.85% | 6.71% | — | — | |
| TJX Cos. Inc. | 0.29% | 13.55% | 21.36% | — | — | |
| ROA, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 9.17% | 9.20% | — | — | — | |
| ROA, Industry | ||||||
| Consumer Discretionary | 8.07% | 4.42% | — | — | — | |
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
ROA = 100 × Net income ÷ Total assets
= 100 × 493,507 ÷ 3,831,809 = 12.88%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Etsy Inc. ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |