Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Etsy Inc., profitability ratios (quarterly data)
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 financial data reveals distinct trends in profitability and efficiency margins over the observed periods.
- Gross Profit Margin
- From March 2017 onwards, the gross profit margin exhibits a generally upward trajectory. Beginning at approximately 65.78%, it increased steadily through subsequent quarters, peaking near 74.36% around September 2021. Thereafter, a mild decline is observed, settling around 70.61% by September 2022. This pattern suggests improved cost control or product mix enhancement leading to higher gross profitability up to late 2021, followed by some margin contraction.
- Operating Profit Margin
- This margin shows an initially modest level of 2.7% in early 2017, followed by robust growth reaching above 26% near December 2021. A marked increase is visible from 2018 onwards, reflecting improved operational efficiency or cost management. However, the last two quarters report a steep decline, with the margin turning negative to -26.48% by the third quarter of 2022, indicating significant operating challenges or extraordinary expenses in that period.
- Net Profit Margin
- The net profit margin fluctuates, increasing from 18.54% in early 2017 to a peak over 23% in late 2021. This margin parallels trends in operating profit margin, suggesting consistent net profitability growth until the latter months. Similar to operating margin, there is a sharp decline into negative territory (-25.94%) in September 2022, signaling net losses possibly due to heightened costs, impairments, or other adverse factors.
- Return on Equity (ROE)
- Return on equity demonstrates a strong upward trend starting from about 20.61% early on, surging dramatically to a high near 90.87% around late 2021. This increasing ROE involves greater profitability relative to shareholder equity, implying effective capital utilization. Nonetheless, data for the latest quarter is missing, preventing evaluation of the most recent performance.
- Return on Assets (ROA)
- The return on assets begins at roughly 13.51%, declining moderately through 2019 to a low near 5.06%. Subsequently, it recovers steadily, peaking at about 19.24% around late 2021. This suggests improving asset efficiency and profit generation per unit of assets until a sharp drop to -26.21% appears in September 2022, reflecting poor asset utilization or significant losses.
Overall, the data portrays a company with strengthening profitability and efficiency from 2017 through 2021, characterized by increasing margins and returns. However, the final observed quarter shows a pronounced downturn across most profitability measures, highlighting a period of financial deterioration that warrants further investigation.
Return on Sales
Return on Investment
Gross Profit Margin
Etsy Inc., gross profit margin calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Gross profit | 420,068) | 413,714) | 406,271) | 508,173) | 378,769) | 379,931) | 407,729) | 466,575) | 331,310) | 317,356) | 145,639) | 179,174) | 128,998) | 122,490) | 116,681) | 142,917) | 103,419) | 86,978) | 79,617) | 92,048) | 69,997) | 65,968) | 62,232) | |||||||
| Revenue | 594,469) | 585,135) | 579,266) | 717,139) | 532,429) | 528,900) | 550,646) | 617,355) | 451,478) | 428,737) | 228,055) | 269,998) | 197,947) | 181,095) | 169,339) | 200,028) | 150,366) | 132,387) | 120,912) | 136,268) | 106,380) | 101,692) | 96,891) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Gross profit margin1 | 70.61% | 70.71% | 70.96% | 71.90% | 73.25% | 73.80% | 74.36% | 73.07% | 70.63% | 68.56% | 65.71% | 66.88% | 68.29% | 69.28% | 69.00% | 68.40% | 67.06% | 66.27% | 66.12% | 65.78% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | 43.04% | 42.65% | 42.14% | 42.03% | 41.31% | 40.68% | 40.01% | 39.57% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 33.72% | 33.72% | 33.94% | 33.95% | 34.03% | 34.10% | 34.06% | 34.09% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 33.06% | 32.97% | 33.06% | 33.01% | 32.94% | 32.89% | 32.23% | 31.80% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 28.78% | 28.91% | 27.61% | 23.66% | 23.97% | 23.61% | 25.04% | 28.46% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
1 Q3 2022 Calculation
Gross profit margin = 100
× (Gross profitQ3 2022
+ Gross profitQ2 2022
+ Gross profitQ1 2022
+ Gross profitQ4 2021)
÷ (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
= 100 × (420,068 + 413,714 + 406,271 + 508,173)
÷ (594,469 + 585,135 + 579,266 + 717,139)
= 70.61%
2 Click competitor name to see calculations.
The financial data reveals a consistent upward trend in both revenue and gross profit over the examined periods, indicating growth in business operations and profitability.
- Revenue
-
Revenue shows a clear pattern of increase from March 2017 through September 2022. Starting at approximately 96.9 million US dollars in early 2017, it rises steadily to reach nearly 594.5 million US dollars by the end of the observed period. Periods of notable acceleration occur particularly from the first quarter of 2020 onward, with revenue climbing sharply from 228 million US dollars to over 717 million US dollars in early 2022, before a slight decrease in subsequent quarters.
- Gross Profit
-
Gross profit follows a similar upward trajectory to revenue, increasing from about 62.2 million US dollars in early 2017 to 420 million US dollars by the last reported quarter. A significant jump is visible around mid-2020, with gross profit more than doubling between March 2020 and December 2020. This suggests improved operational efficiency or favorable cost conditions during this period. Although gross profit fluctuates slightly after peaking in late 2021, it remains substantially higher than earlier periods.
- Gross Profit Margin
-
The gross profit margin demonstrates an improving trend, starting at 65.78% in March 2017 and progressively increasing to reach a peak above 74% during 2021. Margins maintain a relatively high level thereafter, slightly declining but remaining above 70%. This indicates enhanced profitability per revenue dollar over time, reflecting either improved pricing power, cost management, or a shift toward higher-margin products or services.
Overall, the data points to significant growth and improved profitability for the company during the period analyzed, with especially marked acceleration beginning in 2020. The combination of increasing revenue, substantial gross profit gains, and rising gross profit margins highlights strong operational performance and effective cost control measures over the long term.
Operating Profit Margin
Etsy Inc., operating profit margin calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Income (loss) from operations | (954,780) | 72,561) | 84,315) | 142,249) | 83,741) | 89,105) | 150,637) | 161,335) | 118,169) | 119,140) | 25,365) | 25,038) | 14,232) | 17,848) | 31,643) | 29,489) | 18,737) | 12,762) | 13,798) | 18,290) | 7,425) | (11,718) | (2,101) | |||||||
| Revenue | 594,469) | 585,135) | 579,266) | 717,139) | 532,429) | 528,900) | 550,646) | 617,355) | 451,478) | 428,737) | 228,055) | 269,998) | 197,947) | 181,095) | 169,339) | 200,028) | 150,366) | 132,387) | 120,912) | 136,268) | 106,380) | 101,692) | 96,891) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | -26.48% | 15.86% | 16.94% | 20.00% | 21.75% | 24.17% | 26.82% | 24.57% | 20.87% | 16.34% | 9.40% | 10.85% | 12.45% | 13.94% | 14.20% | 12.39% | 11.78% | 10.54% | 5.97% | 2.70% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | 2.58% | 3.15% | 4.12% | 5.30% | 6.18% | 6.68% | 6.63% | 5.93% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 15.10% | 14.79% | 14.70% | 13.84% | 14.01% | 13.99% | 13.85% | 14.37% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 12.36% | 11.79% | 11.55% | 10.77% | 10.64% | 10.53% | 9.30% | 8.75% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 9.55% | 9.32% | 7.05% | 1.81% | 3.13% | 3.26% | 5.86% | 10.59% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
1 Q3 2022 Calculation
Operating profit margin = 100
× (Income (loss) from operationsQ3 2022
+ Income (loss) from operationsQ2 2022
+ Income (loss) from operationsQ1 2022
+ Income (loss) from operationsQ4 2021)
÷ (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
= 100 × (-954,780 + 72,561 + 84,315 + 142,249)
÷ (594,469 + 585,135 + 579,266 + 717,139)
= -26.48%
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue shows a consistent upward trajectory from March 2017 through December 2021. Starting at approximately 96.9 million US dollars in Q1 2017, it increases steadily each quarter, reaching a peak of about 717.1 million US dollars in Q1 2022. Revenue growth is particularly notable beginning in early 2020, where quarterly figures rise from 228 million to over 717 million by the first quarter of 2022, indicating substantial expansion during this period. However, after Q1 2022, the growth appears to decelerate, stabilizing around the mid-500 million US dollar range.
- Income (Loss) from Operations Trends
- Income from operations starts with losses and fluctuations in 2017, including negative figures in the first two quarters but positive values in subsequent quarters. From early 2018 to the end of 2019, income from operations remains positive and grows, though with some volatility, reaching values near 25 million US dollars by the end of 2019. A pronounced and substantial upward shift occurs beginning in early 2020, with income from operations rising dramatically, peaking at approximately 161.3 million US dollars in Q4 2020. This high level is sustained into early 2021 but starts declining thereafter. By Q3 2022, a sharp and significant loss is recorded, with income from operations dropping to almost negative 955 million US dollars, marking a stark contrast from all previous quarters.
- Operating Profit Margin Trends
- Operating profit margin data, available from partway through 2017, shows a positive and improving trend until 2021. Margins start modestly at around 2.7% in late 2017 and progressively increase, peaking above 26% in late 2021. This upward movement reflects enhanced operational efficiency and profitability during this timeframe. However, in the last quarter of available data (Q3 2022), the operating margin flip dramatically, falling to approximately negative 26.5%, indicating a sudden and severe decline in operational profitability.
- Overall Observations
- The data reveals a period of consistent growth in revenue and operational profitability from 2017 through 2021, with strong margin improvements reflecting more efficient operations or higher-value revenue streams. The performance surges notably in 2020, suggesting successful strategic initiatives or market conditions favoring expansion during that year. However, the sharp decline in both operating income and margin in the most recent quarter suggests significant challenges or extraordinary events impacting the company’s operations and financial health. This negative deviation warrants further investigation to understand the underlying causes.
Net Profit Margin
Etsy Inc., net profit margin calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income (loss) | (963,068) | 73,123) | 86,109) | 161,557) | 89,930) | 98,254) | 143,766) | 148,538) | 91,761) | 96,425) | 12,522) | 31,291) | 14,801) | 18,223) | 31,579) | 41,251) | 19,894) | 3,379) | 12,967) | 44,750) | 25,802) | 11,669) | (421) | |||||||
| Revenue | 594,469) | 585,135) | 579,266) | 717,139) | 532,429) | 528,900) | 550,646) | 617,355) | 451,478) | 428,737) | 228,055) | 269,998) | 197,947) | 181,095) | 169,339) | 200,028) | 150,366) | 132,387) | 120,912) | 136,268) | 106,380) | 101,692) | 96,891) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | -25.94% | 17.01% | 18.49% | 21.19% | 21.55% | 22.45% | 23.46% | 20.24% | 16.83% | 13.78% | 8.76% | 11.72% | 14.14% | 15.83% | 14.74% | 12.84% | 15.00% | 17.52% | 20.46% | 18.54% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | 2.25% | 2.39% | 4.48% | 7.10% | 5.73% | 6.64% | 6.42% | 5.53% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 10.79% | 10.55% | 10.45% | 9.74% | 9.94% | 9.91% | 9.79% | 10.20% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 8.63% | 7.41% | 7.23% | 6.51% | 6.29% | 7.12% | 6.17% | 5.93% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 5.85% | 5.81% | 4.00% | 0.28% | 2.24% | 2.11% | 4.57% | 7.84% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
1 Q3 2022 Calculation
Net profit margin = 100
× (Net income (loss)Q3 2022
+ Net income (loss)Q2 2022
+ Net income (loss)Q1 2022
+ Net income (loss)Q4 2021)
÷ (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
= 100 × (-963,068 + 73,123 + 86,109 + 161,557)
÷ (594,469 + 585,135 + 579,266 + 717,139)
= -25.94%
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue displays a general upward trajectory from March 2017 through December 2021, starting at approximately $96.9 million and reaching a peak of over $717 million by the first quarter of 2022. Noticeable increments occur particularly from 2018 onward, with significant quarterly revenue growth notable in 2020 and 2021, reflecting an expansion phase. However, the revenue stabilizes somewhat from mid-2021 to the third quarter of 2022, ranging between $579 million and $594 million.
- Net Income (Loss) Patterns
- Net income exhibits considerable volatility throughout the periods. From an initial loss of $421 thousand in early 2017, it quickly transitions into consistent profitability, peaking in the late quarters of 2020 and early 2021 with figures exceeding $140 million. A substantial downward deviation appears in the third quarter of 2022 with a significant net loss close to $963 million, which starkly contrasts with the prior profitable quarters, indicating a major financial event or impairment.
- Net Profit Margin Evolution
- Net profit margin data begins in late 2017, showing stability and progressive enhancement through 2019 to 2021. Margins generally remain robust, fluctuating between approximately 12% and 23%, with the highest margin recorded in the fourth quarter of 2021 at roughly 23.46%. The margin sharply declines to a negative 25.94% in the third quarter of 2022, aligning with the sharp net loss during this period and suggesting reduced operational efficiency or one-time charges impacting profitability.
- Overall Financial Health and Implications
- The financial data reveals a company experiencing substantial growth in revenue and net income over multiple years, accompanied by healthy profit margins. The sudden negative net income and profit margin in late 2022 indicate an exceptional event affecting the company’s profitability that year. Despite the revenue remaining relatively stable during this time, the loss implies increased costs, write-downs, or other financial setbacks. This underscores the importance of investigating underlying causes to assess the sustainability of growth and profitability observed in prior periods.
Return on Equity (ROE)
Etsy Inc., ROE calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income (loss) | (963,068) | 73,123) | 86,109) | 161,557) | 89,930) | 98,254) | 143,766) | 148,538) | 91,761) | 96,425) | 12,522) | 31,291) | 14,801) | 18,223) | 31,579) | 41,251) | 19,894) | 3,379) | 12,967) | 44,750) | 25,802) | 11,669) | (421) | |||||||
| Stockholders’ equity (deficit) | (606,242) | 581,295) | 676,867) | 628,619) | 533,622) | 530,753) | 683,774) | 742,424) | 666,667) | 524,175) | 406,847) | 406,634) | 389,262) | 442,301) | 420,013) | 400,898) | 394,619) | 370,091) | 384,487) | 396,894) | 348,215) | 308,279) | 295,048) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | — | 70.66% | 64.39% | 78.51% | 90.04% | 90.87% | 70.27% | 47.04% | 34.80% | 29.58% | 18.89% | 23.58% | 27.19% | 25.08% | 22.88% | 19.33% | 20.52% | 23.48% | 24.76% | 20.61% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | 8.24% | 8.83% | 15.98% | 24.13% | 21.78% | 25.64% | 26.04% | 22.84% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 1,539.90% | 736.64% | 844.74% | 390.00% | 813.68% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | — | — | 1,532.36% | 406.05% | 131.77% | 131.40% | 266.43% | 217.09% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 41.40% | 39.21% | 24.63% | 1.55% | 13.47% | 15.26% | 35.54% | 55.01% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
1 Q3 2022 Calculation
ROE = 100
× (Net income (loss)Q3 2022
+ Net income (loss)Q2 2022
+ Net income (loss)Q1 2022
+ Net income (loss)Q4 2021)
÷ Stockholders’ equity (deficit)
= 100 × (-963,068 + 73,123 + 86,109 + 161,557)
÷ -606,242 = —
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the analyzed periods.
- Net Income (Loss):
-
Net income displays overall volatility with periods of strong profitability alternating with declines. Initial quarters in 2017 show a progression from a small loss to growing profits, peaking in the fourth quarter of 2020. However, the last reported quarter shows a significant, large-scale loss compared to prior periods, indicating an unusual or one-time event that materially impacted earnings.
Strong positive figures are observed consistently from mid-2017 through 2021, suggesting robust operational performance during this timeframe. The net income reached its highest levels in late 2020 and early 2021, with figures surpassing 140 million USD. The decline in net income during 2022, ending in a steep loss, represents a sharp reversal in profitability.
- Stockholders’ Equity (Deficit):
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Stockholders' equity generally increased over the majority of the periods, reflecting growth in retained earnings and possibly capital contributions. There is a steady upward trend from 2017 through early 2021, peaking in the first half of 2021. This progression suggests accumulated profitability and financial strengthening over these years.
Following the peak, equity shows a decline starting mid-2021 and sharply turns into a significant deficit by the last quarter reported. This negative equity position highlights a potential erosion of net assets, likely connected to the large net loss observed in the same period.
- Return on Equity (ROE):
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ROE values, reported from late 2017 onward, demonstrate a generally strong and improving return until late 2021. The increase from around 20% to nearly 90% in late 2021 illustrates a substantial enhancement in profitability relative to equity. This suggests efficient use of shareholder investment to generate earnings during most of the examined periods.
Data for ROE is missing for the earliest and the last reported quarters, potentially due to equity deficits or missing inputs. The sharp drop and negative equity in the final quarter would likely result in a non-meaningful ROE figure if calculated, explaining the absence of reported data.
In summary, the company experienced strong growth in profitability and equity from 2017 through early 2021, highlighted by rising net income and ROE. However, the final quarter reveals a major financial setback characterized by a large net loss and resultant negative equity, signaling a significant adverse event or structural challenge that requires further investigation.
Return on Assets (ROA)
Etsy Inc., ROA calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income (loss) | (963,068) | 73,123) | 86,109) | 161,557) | 89,930) | 98,254) | 143,766) | 148,538) | 91,761) | 96,425) | 12,522) | 31,291) | 14,801) | 18,223) | 31,579) | 41,251) | 19,894) | 3,379) | 12,967) | 44,750) | 25,802) | 11,669) | (421) | |||||||
| Total assets | 2,450,311) | 3,607,100) | 3,745,175) | 3,831,809) | 3,502,138) | 3,290,416) | 2,497,411) | 2,404,489) | 2,214,505) | 1,762,031) | 1,517,642) | 1,542,352) | 1,499,198) | 1,021,775) | 981,168) | 901,851) | 907,368) | 865,310) | 870,165) | 605,583) | 574,062) | 554,317) | 530,739) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | -26.21% | 11.39% | 11.64% | 12.88% | 13.72% | 14.66% | 19.24% | 14.52% | 10.48% | 8.80% | 5.06% | 6.22% | 7.06% | 10.86% | 9.79% | 8.59% | 8.93% | 10.04% | 10.94% | 13.51% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | 2.64% | 2.77% | 5.21% | 7.93% | 6.87% | 8.17% | 8.33% | 6.64% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 21.82% | 21.54% | 20.35% | 18.23% | 18.66% | 18.67% | 18.68% | 21.94% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 16.63% | 14.19% | 13.32% | 12.49% | 10.55% | 11.06% | 9.98% | 10.85% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 8.87% | 8.73% | 4.99% | 0.29% | 2.38% | 2.68% | 6.63% | 13.55% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
1 Q3 2022 Calculation
ROA = 100
× (Net income (loss)Q3 2022
+ Net income (loss)Q2 2022
+ Net income (loss)Q1 2022
+ Net income (loss)Q4 2021)
÷ Total assets
= 100 × (-963,068 + 73,123 + 86,109 + 161,557)
÷ 2,450,311 = -26.21%
2 Click competitor name to see calculations.
The financial data exhibits several notable trends and patterns over the reviewed periods. Net income shows significant volatility, with a generally positive trajectory from 2017 through 2021, peaking substantially in the fourth quarter of 2020 and early 2021. Specifically, net income reached its highest levels during late 2020 and early 2021 quarters, demonstrating strong profitability during that timeframe. However, a sharp reversal occurs in the third quarter of 2022 with a pronounced net loss, indicating a significant adverse event or operational difficulty in that period.
Total assets demonstrate consistent growth over the majority of the periods analyzed. Starting from approximately 530 million US dollars at the beginning of 2017, total assets more than quadruple by the end of 2021, reaching over 3.8 billion US dollars. This increase suggests substantial expansion or asset acquisition. However, a decline is observed in 2022, with total assets decreasing notably in the latter quarters, ending the dataset at around 2.45 billion US dollars, which may be related to the aforementioned net loss.
The return on assets (ROA) data, available intermittently, reflects varying efficiency in asset utilization. ROA displayed a general upward trend from 2017 to 2021, peaking in the middle of 2021 at over 19%, indicating improved profitability relative to asset base during this period. However, the most recent available figure shows a steep decline to a negative ROA of roughly -26% in the third quarter of 2022, consistent with the significant net loss reported and decline in total assets, suggesting deteriorated financial performance and asset productivity.
- Net Income (Loss)
- Positive growth and profitability were prominent from 2017 through early 2022, with significant gains especially from 2020 to early 2021. The sharp loss in late 2022 stands out as an anomaly in this upward trend.
- Total Assets
- Strong asset growth occurred steadily over nearly five years until the end of 2021, followed by a significant contraction in 2022.
- Return on Assets (ROA)
- Increasing ROA values up to mid-2021 indicate improving return on the company’s asset base, followed by a dramatic drop into negative territory in 2022 reflective of operational losses and possible asset write-downs or impairments.
Overall, the analyzed periods illustrate a company experiencing growth and improving profitability through 2021, succeeded by a pronounced financial downturn in 2022, characterized by heavy losses, reduced asset base, and negative returns on assets. This shift warrants further investigation into underlying causes such as market conditions, operational challenges, or extraordinary expenses incurred in the latest periods.