Quick Ratio

The quick ratio measures a company's ability to cover its short-term liabilities using its most liquid assets (cash, marketable securities, receivables) — a value above 1.0x is generally considered healthy.

At 1.13x, Etsy sits well above the sector median of 0.71x and ranks in the 76th percentile among peers, indicating stronger near-term liquidity than most competitors. The year-over-year change is not available, but the quarter-over-quarter decline of -13.1% from 1.30x to 1.13x shows a clear deterioration over the most recent three months. While the absolute level remains above the critical 1.0x threshold, the negative trend suggests that the company's liquid asset buffer is shrinking relative to its debts. For an investor, this combination of a strong level but a worsening trend points to a reduced margin of safety that introduces incremental risk. This directly supports the overall CAUTIOUS verdict, as the declining quick ratio contradicts the comfort offered by the still-healthy current figure.

Frequently Asked Questions

Closest Sector Peers