Etsy (MEX:ETSY) ROCE % : 19.07% (As of Sep. 2024)

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What is Etsy ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Etsy's annualized ROCE % for the quarter that ended in Sep. 2024 was 19.07%.

Etsy ROCE % Historical Data

The historical data trend for Etsy's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Etsy ROCE % Chart

Etsy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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9.65

25.22

18.86

-24.05

14.35

Etsy Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															18.01	15.16	13.78	15.45	19.07

Etsy ROCE % Calculation

Etsy's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	5208.752	/	( ( (51371.2 - 12316.695)	+	(45582.646 - 12064.973) )	/ 2 )
	=	5208.752	/	( (39054.505	+	33517.673)	/ 2 )
	=	5208.752	/	36286.089
	=	14.35 %

Etsy's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	6837.812	/	( ( (44849.224 - 10341.423)	+	(48087.769 - 10887.948) )	/ 2 )
	=	6837.812	/	( ( 34507.801	+	37199.821 )	/ 2 )
	=	6837.812	/	35853.811
	=	19.07 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Etsy (MEX:ETSY) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Etsy ROCE % Related Terms

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Etsy Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Etsy Inc (MEX:ETSY) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ETSY:USA 1ETSY:Italy 0IIW:UK 3E2:Germany E2TS34:Brazil ETSY:Austria

Address

117 Adams Street, Brooklyn, NY, USA, 11201

Website

https://www.etsy.com

Etsy operates a top-10 e-commerce marketplace operator in the us and the UK, with sizable operations in Germany, France, Australia, and Canada. The firm dominates an interesting niche, connecting buyers and sellers through its online market to exchange vintage and craft goods. With $13.2 billion in 2023 consolidated gross merchandise volume, Etsy has cemented itself as one of the largest players in a quickly growing space, generating revenue from listing fees, commissions on sold items, advertising services, payment processing, and shipping labels. As of the end of 2023, the firm connected more than 96 million buyers and 9 million sellers on its marketplace properties: Etsy, Reverb (musical equipment), and Depop (clothing resale).