Airbnb Inc (ABNB)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Cost of revenue	US$ in thousands	1,703,000	1,499,000	1,156,000
Payables	US$ in thousands	141,000	137,000	118,000
Payables turnover		12.08	10.94	9.80

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,703,000K ÷ $141,000K
= 12.08

The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the cost of goods sold to its average accounts payable for a period. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.

Analyzing Airbnb Inc's payables turnover over the past five years, we see a fluctuating trend. In 2019, the payables turnover was 7.90, showing that Airbnb took approximately 7.90 times to pay off its accounts payable during that year. This ratio increased significantly in 2020 to 10.96, indicating an improvement in the company's ability to repay its suppliers more rapidly.

In 2021, the payables turnover ratio decreased slightly to 9.77, suggesting a slight slowdown in settling accounts payable compared to the previous year. In 2022, the ratio increased again to 10.94, indicating an improvement in efficiency in managing payables.

Unfortunately, the payables turnover ratio for 2023 is missing from the data provided, making it challenging to draw a precise conclusion for that year.

Overall, Airbnb's payables turnover ratio has shown variability over the years, with fluctuations reflecting changes in the company's accounts payable management efficiency. Further analysis and comparison with industry benchmarks may provide additional insights into the company's financial performance and working capital management.