An analysis of Etsy's Altman Z-score suggests potential financial distress. The EBIT to Total Assets ratio serves as a crucial barometer of a company's operational effectiveness. An analysis of Etsy's EBIT to Total Assets ratio from historical data (2021: 0.15; 2022: 0.11; 2023: -0.26) indicates a descending trend, suggesting that Etsy might not be utilizing its assets to their full potential to generate operational profits, which could be negatively affecting the company's overall Z-score.