ETSY Debt-to-Equity Ratio Analysis
Updated 201h ago·SEC filings & market data
Key Takeaway
The debt-to-equity ratio measures how much a company relies on borrowed funds relative to shareholders’ equity.
Sector Performance
4th percentileETSY
-2.14x
Sector Median
0.74x
Sector Avg
2.51x
Prior Period
-2.62x(Jul 2026)
Deep Analysis
The debt-to-equity ratio measures how much a company relies on borrowed funds relative to shareholders’ equity.
A negative value, like ETSY’s current -2.62x, means total liabilities exceed total assets, resulting in negative book equity. Among sector peers, the median ratio is 0.73x, placing ETSY at the 5th percentile — far below the typical peer. Year-over-year change is not available, but quarter-over-quarter the ratio improved by +3.3%, moving from -2.71x to -2.62x. This combination of an extreme negative level with a slight quarterly improvement suggests a high-risk financial structure, though the direction is modestly positive. The overall cautious verdict is supported: negative equity and a bottom-quintile ranking indicate substantial leverage risk, even with the recent uptick.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about ETSY?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
Who are ETSY's closest peers by Debt-to-Equity Ratio?
The closest peers by Debt-to-Equity Ratio include: TAP (0.76x), PCAR (0.72x), O (0.78x), PRU (0.78x), KIM (0.85x).
Learn More About Debt-to-Equity Ratio
How to Spot a Debt Problem Before It Hits the Stock Price
Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.
Debt/Equity Ratio: How Much Debt Is Too Much?
The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
Master ETSY's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full ETSY research report →ETSY
-2.14x
Sector Median
0.74x
Sector Avg
2.51x
How ETSY's Debt-to-Equity Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.