Airbnb Inc (ABNB)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Inventory turnover		—	0.32	—	78.30
DOH	days	—	1,146.87	—	4.66

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

Days of Inventory on Hand (DOH) is a crucial financial ratio that measures the number of days a company takes to sell its entire inventory. Analyzing the trend of Airbnb Inc's DOH from December 31, 2021, to December 31, 2024, provides insights into the efficiency of Airbnb's inventory management.

As of December 31, 2021, Airbnb Inc had 4.66 days of inventory on hand, indicating that the company managed its inventory efficiently and had a rapid turnover rate. However, the data for December 31, 2022, is not available (denoted as “— days”), making it challenging to assess Airbnb's inventory performance for that year.

On December 31, 2023, the DOH surged significantly to 1,146.87 days. This sharp increase suggests potential issues with inventory management, such as excess inventory levels or a slowdown in sales. Such a high DOH figure can tie up capital in unsold inventory and may signal inefficiencies in inventory control processes.

The absence of data for December 31, 2024, makes it impossible to determine the trend's continuation or if any improvements were made in inventory management following the high DOH recorded in 2023.

In conclusion, the fluctuating trend in Airbnb's DOH raises concerns about the company's inventory management practices. The drastic increase in DOH in 2023 highlights potential risks associated with excess inventory levels, which could impact the company's cash flow and profitability. Monitoring and improving inventory turnover will be essential for Airbnb to enhance operational efficiency and financial performance in the future.