Etsy Beneish M Score

ETSY -  USA Stock  

USD 221.09  5.19  2.40%

This module uses fundamental data of Etsy to approximate the value of its Beneish M Score. Etsy M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to Etsy Piotroski F Score and Etsy Altman Z Score analysis.

Etsy Beneish M Score 

 
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Etsy Total Debt is fairly stable at the moment as compared to the past year. Etsy reported Total Debt of 1.12 Billion in 2020. Debt Non Current is likely to rise to about 1.2 B in 2021, whereas Debt Current is likely to drop slightly above 7.5 M in 2021. Etsy Revenue to Assets are fairly stable at the moment as compared to the past year. Etsy reported Revenue to Assets of 0.72 in 2020. Total Assets Per Share is likely to rise to 20.61 in 2021, whereas Accounts Payable Turnover is likely to drop 40.77 in 2021.
At this time, it appears that Etsy Inc is an unlikely manipulator. The earnings manipulation may begin if Etsy's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Etsy executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Etsy's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.89
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
1.0
Asset Quality
0.97
Expense Coverage
1.0
Gross Margin Strengs
1.05
Accruals Factor
1.0
Depreciation Resistance
1.22
Net Sales Growth
1.08
Financial Leverage Condition
1.0

Etsy Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Etsy's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues1.9 B1.7 B
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense708.6 M656.8 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations732.6 M679 M
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion46 M58.2 M
Significantly Down
Increasing
Slightly volatile
Total Assets2.6 B2.4 B
Significantly Up
Increasing
Slightly volatile
Investments500.9 M464.2 M
Significantly Up
Increasing
Slightly volatile
Investments Current458.7 M425.1 M
Significantly Up
Increasing
Slightly volatile
Investments Non Current47.6 M39.1 M
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net118.9 M112.5 M
Notably Up
Increasing
Slightly volatile
Trade and Non Trade Receivables182.8 M169.4 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities1.8 B1.7 B
Significantly Up
Increasing
Slightly volatile
Current AssetsB1.9 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current418.2 M509.7 M
Significantly Down
Increasing
Slightly volatile
Current Liabilities490.6 M454.7 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current1.3 B1.2 B
Significantly Up
Increasing
Slightly volatile
Total Debt1.2 B1.1 B
Significantly Up
Increasing
Slightly volatile
Debt Current7.5 M8.5 M
Fairly Down
Increasing
Slightly volatile
Debt Non Current1.2 B1.1 B
Significantly Up
Increasing
Slightly volatile
Operating Income457.5 M424 M
Significantly Up
Increasing
Slightly volatile
Gross Margin0.770.731
Notably Up
Increasing
Slightly volatile

Etsy Inc Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Etsy's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Etsy in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Etsy's degree of accounting gimmicks and manipulations.

About Etsy Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

45.99 MillionShare
Etsy Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. Etsy reported Depreciation Amortization and Accretion of 58.19 Million in 2020

Etsy Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Etsy. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201620172018201920202021 (projected)
Revenues364.97 M441.23 M603.69 M818.38 M1.73 B1.86 B
Total Assets581.19 M605.58 M901.85 M1.54 B2.4 B2.59 B
Current Assets371.03 M439.26 M680.29 M921.04 M1.89 B2.04 B
Assets Non Current210.16 M166.32 M221.56 M621.31 M509.71 M418.18 M
Total Liabilities236.44 M208.69 M500.95 M1.14 B1.66 B1.79 B
Current Liabilities84.01 M102.48 M112.06 M188.53 M454.66 M490.56 M
Total Debt69.48 M69.96 M342.46 M847.01 M1.12 B1.2 B
Debt Current6.83 M5.8 M3.88 M8.28 M8.54 M7.49 M
Debt Non Current62.66 M64.16 M338.57 M838.74 M1.11 B1.19 B
Operating Income17.58 M11.9 M74.79 M88.76 M424.01 M457.48 M
Investments100.49 M25.11 M257.3 M463.3 M464.21 M500.86 M
Investments Current100.49 M25.11 M257.3 M373.96 M425.12 M458.68 M

About Etsy Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Etsy Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Etsy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Etsy Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York. Etsy operates under Internet Retail classification in the United States and is traded on NASDAQ Exchange. It employs 1598 people.

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Our tools can tell you how much better you can do entering a position in Etsy without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Etsy

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Etsy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Etsy will appreciate offsetting losses from the drop in the long position's value.

Etsy Pair Correlation

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Correlation analysis and pair trading evaluation for Etsy and Imedia Brands. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Continue to Etsy Piotroski F Score and Etsy Altman Z Score analysis. Note that the Etsy Inc information on this page should be used as a complementary analysis to other Etsy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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When running Etsy Inc price analysis, check to measure Etsy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Etsy is operating at the current time. Most of Etsy's value examination focuses on studying past and present price action to predict the probability of Etsy's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Etsy's price. Additionally, you may evaluate how the addition of Etsy to your portfolios can decrease your overall portfolio volatility.
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The market value of Etsy Inc is measured differently than its book value, which is the value of Etsy that is recorded on the company's balance sheet. Investors also form their own opinion of Etsy's value that differs from its market value or its book value, called intrinsic value, which is Etsy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Etsy's market value can be influenced by many factors that don't directly affect Etsy Inc underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Etsy's value and its price as these two are different measures arrived at by different means. Investors typically determine Etsy value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Etsy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.