Debt-to-Equity Ratio

A Debt-to-Equity (D/E) ratio of -2.62x means the company’s total liabilities exceed its total shareholders’ equity, resulting in negative equity — a signal that the company has more debt than assets funded by equity.

This compares unfavorably to the sector median of 0.73x, placing Etsy in the 5th percentile among its peers, meaning only 5% of companies have a more negative (or equally negative) ratio. The year-over-year change is not available, but the quarter-over-quarter change shows a +3.3% movement from -2.71x to -2.62x, indicating the ratio has become slightly less negative. The combination of a deeply negative D/E ratio with a modest quarter-over-quarter improvement still points to elevated financial risk, as negative equity typically restricts borrowing capacity and raises default concerns. This metric directly supports the overall CAUTIOUS verdict, since a negative D/E ratio at such an extreme level relative to peers underscores a fragile capital structure.

Frequently Asked Questions

Closest Sector Peers