Airbnb Inc (ABNB)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Revenue	US$ in thousands	9,917,000	8,337,000	5,577,050
Property, plant and equipment	US$ in thousands	160,000	121,000	157,000
Fixed asset turnover		61.98	68.90	35.52

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,917,000K ÷ $160,000K
= 61.98

Fixed asset turnover measures how efficiently a company is generating revenue from its fixed assets. A higher fixed asset turnover indicates that the company is utilizing its fixed assets effectively to generate sales.

In the case of Airbnb Inc, the fixed asset turnover has fluctuated over the past five years. In 2023, the company achieved a high fixed asset turnover of 61.98, indicating that it generated $61.98 in revenue for every dollar of fixed assets invested. This suggests that Airbnb's fixed assets were utilized efficiently in generating sales during that period.

Comparing this to the previous years, Airbnb's fixed asset turnover was also relatively high in 2022 at 69.41, indicating efficient utilization of fixed assets. The company experienced a significant increase in fixed asset turnover from 2020 to 2021, demonstrating improved efficiency in generating sales from fixed assets.

In contrast, in 2020, Airbnb's fixed asset turnover was 12.50, which was relatively low compared to the following years. This indicates that the company may have had less efficient utilization of fixed assets during that period. However, over the years, Airbnb has shown an overall improvement in utilizing its fixed assets efficiently to generate revenue.

It is essential for Airbnb Inc to monitor its fixed asset turnover ratio continually to ensure that its fixed assets are being effectively used to drive revenue growth and profitability.