ETSYCAUTIOUS

Return on Equity (ROE)

-14.8%

Updated 728h ago

Sector Performance

10th percentile

ETSY

-14.8%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

# Return on Equity (ROE)

ETSY's ROE of -14.8% means the company is generating losses rather than profits on shareholder equity, indicating it is destroying shareholder value. This performance ranks in the 11th percentile among sector peers, falling substantially below the sector median of 13.5%—a gap of 28.3 percentage points that reflects severe underperformance relative to competitors. The trend shows ROE has remained flat at -14.8% over the last two quarters, suggesting the negative profitability has not improved or worsened but rather persisted at depressed levels. For investors, negative ROE combined with below-peer performance indicates operational challenges that warrant caution; the company is not generating returns on invested capital and lags far behind what shareholders could expect from alternative investments in the sector.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ETSY?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are ETSY's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.