Question

Hello can someone please help me with the following assignment, I wanted to do this assignment on the company Etsy, but I am lost on where to begin.
Here is a link to their annual reports. https://investors.etsy.com/financials/annual-reports-and-proxy/default.aspx

Students must select a public company that interests you. Obtain the company's most recent annual report or Form 10-K. The Form 10-K is a company's annually required filing with the Securities Exchange Commission (SEC). It includes the company's financial statements and accompanying notes. The Form 10-K can be obtained from: (A) from the investor relations section of the company's Web site or (B) by using the company search feature of the SEC's EDGAR database.

For option A, google the company. Once at the company's website, search for investor relations, and locate the Form 10-K and/or Annual Report.

Assignment

Once the annual report is located, please do the following:

1. Indicate the name of the company that you plan to report on.
2. Indicate the time period covered by the annual report.
3. Based on the information in the company's most recent annual report, determine each of the following for all of the years presented:
   • Gross Profit
   • Gross Profit rate (Gross profit divided by Sales)
   • Income from Operations
   • Net Income
   • Use the above information to discuss the company's performance, for example, has the company performance improved, remained constant, or deteriorated over the periods presented. Briefly explain your answer.

Answer 1

Answers to the questions are as follows :

1. Indicate the name of the company that you plan to report on.

Answer : ETSY, INC.

2. Indicate the time period covered by the annual report.

Answer : January 1, 2019 to December 31, 2019.

3. Based on the information in the company's most recent annual report, determine each of the following for all of the years presented:

• Gross Profit

Answer : Gross Profit for the year 2019 - $ 547,343

Gross Profit foe the year 2018 - $ 412,931

Gross Profit for the year 2017 - $ 290,245

• Gross Profit rate (Gross profit divided by Sales)

Answer : Gross Profit Rate for the year 2019 - 66.9

Gross Profit Rate for the year 2018 - 68.4

Gross Profit Rate for the year 2017 - 65.8

• Income from Operations

Answer : Income from operations for the year 2019 - $ 88,761

Income from operations for the year 2018 - $ 74,786

Income from operations for the year 2017 - $ 11,896

• Net Income

Answer : Net Income for the year 2019 : $ 95,894

Net Income for the year 2018 : $ 77,491

Net Income for the year 2017 : $ 81,800

• Use the above information to discuss the company's performance, for example, has the company performance improved, remained constant, or deteriorated over the periods presented. Briefly explain your answer.

Answer : Comparing 2018 and 2017 :

• Gross Profit has almost increased as twice.
• There's a huge increase in Income from operations as marketing and Product Development increased.
• As a result of Foreign Exchange (Loss) in 2018 Other Expenses increased highly, this resulted in loss of Net Income as of 2017.

Comparing 2019 and 2018 :

• Increase in Gross Profit.
• Total Operating Expenses increased as a matter of increase in marketing, product development etc.,
• Interest and Other Income has increased almost twice and a gain in Foreign Exchange helped in minimising the total expense as half as that of 2018.
• Net Income has increased than that of 2017 and 2018 because of improvement in Income from operations and favourable economy.