Esketit Financial Analysis
- Written by
- Just P2P
- •
- Updated December 3, 2024
This financial analysis of Esketit covers all the key aspects identified as important for assessing peer-to-peer lending platforms. For that, we follow an approach that balances rigorous quantitative metrics with qualitative interpretation of the trends and context.
Obviously, any feedback from the platform as well comments from other investors are welcome. It is the right of the platforms to answer, complement and/or challenge the results of this financial analysis. And investors may complement with their own views and/or ask questions in the comments.
Table des matières
Esketit financial data
Managed by Vitalijs Zalovs, Esketit P2P platform is composed by two legal entities, Esketit SIA and Esketit Platform Limited (with the same Director, Matiss Ansviesulis). This structure separates operational management (Latvia) from financial platform activities (Ireland), which is a common setup in the FinTech industry for both operational efficiency and regulatory purposes.
Esketit Platform Limited, registered in Ireland, operates as the main P2P platform entity, handling investor funds and financial transactions, as evidenced by its large cash holdings and client funds position (“other creditors“). Our financial analysis relies on their 3 unaudited annual reports : FY2021, FY2022 and FY2023.
Esketit SIA is “a Latvian based company which provides management and marketing services to Esketit Platform Limited.” Its revenue comes from “management and financial services provided to related companies”. Our financial analysis relies on their 3 unaudited annual reports : 2021, 2022 and 2023.
Based on this financial data, we have calculated the most pertinent components and ratios of the balance sheets (but please pay attention that reports for Esketit Platform Ltd are not on a calendar year). All metrics on which we based our financial analysis are gathered in the following tables and charts.
Annual financial statements
Let’s review Esketit financial statements starting with the yearly balance sheets of both Esketit Platform Limited and Esketit SIA, as well as an analysis of them. Then we’ll switch to the analysis of their yearly turnover, profit/loss and financial ratios.
Esketit Balance sheets
We start with the yearly balance sheets of both legal entities followed by an overall analysis of their key metrics over the periods studied with specific details for each legal entity.
Esketit Ltd Balance sheets
 | FY2021 | FY2022 | FY2023 |
Total Assets | 0.27 M€ | 0.70 M€ | 3.47 M€ |
Current assets | 0.17 M€ | 0.53 M€ | 3.27 M€ |
Non-current assets | 0.10 M€ | 0.17 M€ | 0.20 M€ |
Total Equity | -0.14 M€ | -0.31 M€ | -0.48 M€ |
Total Liabilities | 0.41 M€ | 1.01 M€ | 3.95 M€ |
Current liabilities | 0.17 M€ | 0.53 M€ | 3.38 M€ |
Non-current liabilities | 0.23 M€ | 0.48 M€ | 0.578 M€ |
Esketit SIA Balance sheets
| 2021 | 2022 | 2023 |
Total Assets | 31 042 € | 23 553 € | 48 140 € |
Current assets | 29 211 € | 20 113 € | 46 392€ |
Non-current assets | 1 831 € | 3 440 € | 1 748 € |
Total Equity | 11 483 € | 5 054 € | 18 836 € |
Total Liabilities | 19 559 € | 18 499 € | 29 304 € |
Current liabilities | 19 559 € | 18 499 € | 29 304 € |
Non-current liabilities | - | - | - |
The platform business (Esketit Platform Limited) has shown remarkable growth (total assets increased from 0.27M€ in 2021 to 3.47M€ in FY2023, primarily in current assets (from 0.17M€ to 3.27M€). The negative equity has deepened from -0.14MK€ to -0.48M€, while total liabilities have grown from 0.41M€ to 3.95M€. This structure is characteristic of a growing P2P platform where expansion requires significant working capital.
The operational entity (Esketit SIA) demonstrates a more stable but growing profile, with total assets moving from 31K€ in 2021 to 48.1K€ in 2023. Its positive equity has fluctuated but strengthened from 11.5K€ to 18.8K€. The entity operates with only current liabilities, which increased moderately from 19.6K€ to 29.3K€. This light balance sheet structure is appropriate for a service entity focused on management and marketing activities.
The analysis reveals a clear two-entity structure where a rapidly expanding platform with negative equity is backed by a smaller but equity-positive operational entity. While Esketit Platform Limited’s growing assets reflect increasing business volumes, its deepening negative equity, despite this growth, indicates a need to address capital structure in the medium term.
Esketit Ltd analysis FY2023
In this part, we analyse the key ratios of Esketit Platform Ltd as well as their profit/loss over the period studied. This is followed by an analysis of their key ratios and evolutions observed.
Please note that Esketit Platform Limited’s reports are “abridged financial statements” submitted under the small companies’ regime in Ireland. This means they are not required to publish their full profit and loss account, hence we cannot see their turnover figures or detailed operational costs.
Esketit Ltd Financial Ratios
| FY2021 | FY2022 | FY2023 |
Return on Assets | -50.51% | -24.47% | -4.86% |
Loss to Clients funds | -90.35% | -36.45% | -6.17% |
Current Ratio | 1.01 | 1.02 | 0.97 |
Equity to Assets | -50.47% | -43.85% | -13.74% |
Assets Growth | - | +160.44% | +393.74% |
Clients funds Growth | - | +212.65% | +479.76% |
Clients funds to Assets | 55.91% | 67.12% | 78.81% |
Clients funds Cash Coverage | 107.75% | 102.90% | 114.87% |
Esketit Ltd Profit & Loss
Esketit Ltd demonstrated a remarkable expansion with total assets growing by 393.74% and client funds by 479.76%. They improved their financial efficiency, as shown by the ROA (-24.47% → -4.86%). The loss relative to client funds also improved to -6.17%, suggesting that the platform is moving towards a more sustainable operational model as it scales up.
The platform maintains strong liquidity management with a cash coverage of client funds at 114.87%, despite a slight decrease in the current ratio to 0.97. This robust cash position is crucial for a their credibility and operational stability, particularly given the significant increase in client funds under management.
The equity to assets ratio, while still negative at -13.74%, has notably improved from -43.85%. Combined with the stabilization of losses at 169K€, it indicates that while the company still needs to address its capital structure, its rapid growth is helping to dilute the impact of accumulated losses.
Esketit SIA analysis 2023
In this part, we analyse the key ratios of Esketit SIA as well as their turnover and profit/loss over the period studied. This is followed by an analysis of their key ratios and evolutions observed.
Esketit SIA Financial Ratios
| 2021 | 2022 | 2023 |
Return on Assets | 27.97% | 27.30% | 28.63% |
Return on Equity | 75.61% | -127.21% | 73.17% |
Current Ratio | 1.49 | 1.09 | 1.58 |
Equity to Assets | 36.99% | 21.46% | 39.13% |
Operating Expense | 5.24% | 24.01% | 18.59% |
Operating Margin | 10.69% | 21.57% | 23.17% |
Revenue Growth | - | +64.06% | +14.43% |
Assets Growth | - | -24.12% | +104.39% |
Liabilities to Equity | 1.70 | 3.66 | 1.56 |
Esketit SIA Profit & Loss
In 2023, Esketit SIA shows significant improvement with profitability strongly rebounding to 13,782€ from a loss in 2022, driving ROA and ROE back to robust levels of 28.63% and 73.17% respectively. The company maintained steady growth with revenue increasing by 14.43% to reach 301,927€, while total assets more than doubled (+104.39%) to 48,140€.
Operational efficiency metrics reveal a balanced performance, with Operating Margin improving to 23.17% while Operating Expense Ratio decreased to 18.59% from 24.01% in 2022. The company’s liquidity position strengthened with Current Ratio rising to 1.58, indicating solid short-term financial health.
The company’s financial structure shows increasing stability with the Equity to Asset Ratio improving to 39.13% and Total Liabilities to Equity Ratio decreasing to 1.56. This improvement in key stability metrics, combined with the return to profitability and continued revenue growth, suggests effective management of its role as the management and marketing service provider.
Challenges for Esketit
1. Capital Structure Reinforcement : Despite operational improvements, the persistent negative equity position needs addressing. Esketit Ltd’s rapid growth and increasing client funds require a stronger capital base to provide additional security to investors and support future expansion.
2. Operational Cost Management : Although profitability has returned for Esketit SIA, the volatility in operational costs over the period needs attention. As the service entity supporting a rapidly growing platform, establishing stable and efficient cost structures is essential for sustainable performance.
3. Growth Pace Alignment : The significant difference in growth rates between the two entities highlights a need for better synchronization. The operational entity must scale its management and marketing support capabilities in line with the platform’s expansion, without compromising service quality.
Opportunities for Esketit
1. Market Position Strengthening : The demonstrated ability to attract and manage increasing client funds, supported by efficient marketing and management services, positions Esketit to capture larger market shares in the P2P landscape. The 2-entity structure appears well-suited for further market expansion.
2. Operational Leverage Potential : For Esketit Ltd, the improving efficiency ratios and stabilizing losses despite rapid growth suggest significant potential for operational leverage. Reaching a larger scale could help turn the platform profitable while maintaining the strong cash coverage of client funds.
3. Service Value Enhancement : The proven ability to increase operating margins while supporting platform growth indicates room for service expansion. The operational entity could develop additional value-added services to support the platform’s development while maintaining its lean structure.
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