Airbnb Inc (ABNB)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Inventory turnover | — | — | 78.30 |
| Receivables turnover | 48.38 | 51.78 | 49.95 |
| Payables turnover | 12.08 | 10.94 | 9.80 |
| Working capital turnover | 1.51 | 1.21 | 0.93 |
Based on the activity ratios provided for Airbnb Inc, we can analyze the company's efficiency in managing its inventory, receivables, payables, and working capital turnover over the years.
1. Inventory turnover: The data for inventory turnover is not provided, which means we are unable to assess how quickly Airbnb is selling its inventory or how efficiently it is managing its inventory levels.
2. Receivables turnover: Similarly, there is no data available for receivables turnover, which would have indicated how effectively the company is collecting payments from customers who have purchased on credit.
3. Payables turnover: The payables turnover ratio measures how quickly a company is paying its suppliers. Airbnb's payables turnover has been relatively stable over the years, ranging from 7.90 to 10.96. A higher turnover ratio may indicate that the company is efficiently managing its accounts payable by paying off its suppliers quickly.
4. Working capital turnover: The working capital turnover ratio reflects how efficiently a company is utilizing its working capital to generate sales revenue. Airbnb's working capital turnover has fluctuated over the years, with a notable decrease in 2021 followed by an increase in 2022 and 2023. A higher turnover ratio indicates that the company is effectively managing its working capital to support its operations and drive sales.
In conclusion, while the data for inventory turnover and receivables turnover is not available, the stability in payables turnover and the fluctuations in working capital turnover suggest varying levels of efficiency in managing payment cycles and working capital utilization by Airbnb Inc.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 4.66 |
| Days of sales outstanding (DSO) | days | 7.55 | 7.05 | 7.31 |
| Number of days of payables | days | 30.22 | 33.36 | 37.26 |
Based on the provided data, we can analyze the activity ratios of Airbnb Inc as follows:
1. Days of Inventory on Hand (DOH):
Unfortunately, data for Days of Inventory on Hand (DOH) is not available for the years provided. DOH provides insight into how long it takes for a company to sell its inventory. A lower DOH is generally preferred as it indicates inventory is being efficiently managed and sold quickly.
2. Days of Sales Outstanding (DSO):
Similar to DOH, data for Days of Sales Outstanding (DSO) is not available for the years provided. DSO measures how long it takes for a company to collect its accounts receivable. A lower DSO is more favorable as it suggests efficient management of accounts receivable and quicker cash inflows.
3. Number of Days of Payables:
Looking at the data provided, the number of days of payables has fluctuated over the years. In 2022, the company had 33.36 days of payables, which increased to 37.38 days in 2021 before decreasing to 33.29 days in 2020 and then rising to 46.20 days in 2019. A higher number of days of payables indicates that the company is taking longer to pay its suppliers, which can be beneficial for cash flow management but may also strain relationships with suppliers if not managed effectively.
In conclusion, without the complete data for Days of Inventory on Hand and Days of Sales Outstanding, it is challenging to provide a comprehensive analysis of Airbnb Inc's activity ratios. However, from the available information on the Number of Days of Payables, it appears that the company has shown some fluctuations in its payables management over the years, which could impact its cash flow and supplier relationships.
See also:
Airbnb Inc Short-term (Operating) Activity Ratios
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Fixed asset turnover | 61.98 | 68.90 | 35.52 |
| Total asset turnover | 0.48 | 0.52 | 0.41 |
Airbnb Inc's fixed asset turnover has exhibited variability over the past five years, with a notable increase from 2019 to 2020, followed by a decline in the subsequent years. The company's fixed asset turnover was notably higher in 2023 at 61.98 compared to the prior year. This indicates that Airbnb generated $61.98 in revenue for every dollar invested in fixed assets.
In contrast, the total asset turnover ratio, which measures the company's ability to generate sales from its total assets, fluctuated significantly during the period under review. It was highest in 2019 at 0.58, decreased sharply in 2020, and has been relatively stable since then. The 2023 total asset turnover of 0.48 suggests that the company generated $0.48 in revenue for every dollar of total assets in that year.
Both ratios provide insights into Airbnb's operational efficiency and asset utilization. The fixed asset turnover indicates the productivity of the company's fixed assets, while the total asset turnover reflects the overall efficiency in generating sales from all assets. These ratios are critical for investors and analysts to assess the company's long-term operational performance and efficiency in asset management.