IDENTIFYING OPPORTUNITIES TO INCREASE PROFITS AND PROFITABILITY IN ENSURING ECONOMIC STABILITY: A CASE STUDY OF ETSY

Abstract

Abstract
The purpose of this paper is to evaluate profitability and provide indicators on
how it can be improved: using Etsy as a case study. Considering that Etsy has stable
revenue growth, successful operational structure and sustainable business model, it can
provide information on enhancing profitability. It is believed that profit is the main
driver of a business, as it is necessary for a company to survive in the long-run. This
article illustrates the financial status of Etsy, using horizontal and vertical methods and
profitability ratios which include the factors effecting company’s profit. Furthermore,
it examines the efficiency of a company's activity, potential risks, competitiveness and
continuity.
Keywords: Profit, financial ratios, Etsy, net income, operational costs, business
performance, revenue, profitability of assets, profitability of equity.