Etsy (ETSY) Financials

Etsy Inc (ETSY) is a global online marketplace that connects millions of buyers and sellers, offering a wide variety of unique and handmade products. As a marketplace operator, Etsy generates revenue primarily from transaction fees, listing fees, and other seller services. These fees are classified as total revenue in Etsy's financial statements. In the latest reported fiscal year, Etsy recorded a total revenue of $603.7 million, reflecting a strong performance and consistent growth in its platform's popularity.

Gross profit, another important financial metric, represents the excess of total revenue over the cost of goods sold. For Etsy, gross profit amounted to $471.2 million, indicating the profitability and efficiency of its operations. Earnings before interest and taxes (EBIT) is a measure of operating profitability, calculated by deducting operating expenses from gross profit. Etsy's EBIT for the fiscal year was $92.8 million, indicating the company's ability to generate profits from its core operations.

To further analyze Etsy's financial performance, it is crucial to consider EBITDA (earnings before interest, taxes, depreciation, and amortization). EBITDA provides a clearer picture of the company's operating performance by excluding non-operating expenses. Etsy's EBITDA stood at $144.5 million, demonstrating its strong operational efficiency and ability to generate cash flow.

Moving on to the balance sheet, it provides insights into Etsy's financial position at a specific point in time. Total assets, representing the resources controlled by the company, amounted to $2.1 billion, showcasing Etsy's substantial asset base. Total liabilities, on the other hand, represent the company's debts and obligations. Etsy's total liabilities were $1.6 billion, indicating its commitment to meeting financial obligations.

Stockholders' equity is an important component of the balance sheet, representing the residual interest in the assets of the company. Etsy's stockholders' equity amounted to $490.4 million, signifying the ownership value attributable to the shareholders. Net debt, calculated by subtracting cash equivalents and cash from total debt, provides insights into the company's leverage. Etsy's net debt was $303.2 million, indicating a manageable debt level.

Cash flow analysis is crucial in understanding the company's ability to generate cash from its operating, investing, and financing activities. Operating cash flow, which represents the cash generated from core operations, was $217 million for Etsy. Investing cash flow, which reflects cash used for acquisitions or capital expenditures, was -$61.3 million. Financing cash flow, which represents cash raised from the issuance of debt or equity, was -$129.3 million.

Another important cash flow metric is free cash flow, which indicates the amount of cash available for distribution to investors or further investment in the business. Etsy's free cash flow was $155.7 million, reflecting its ability to generate cash after considering capital expenditures. Finally, let's consider cash equivalents, which are highly liquid assets that can be readily converted into cash. Etsy's cash equivalents were $258.4 million, demonstrating its financial flexibility and ability to meet short-term obligations.