Airbnb Inc (ABNB)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021
Inventory turnover	—	—	—	—	—	—	—	—	—	—	92.09	—	78.30
Receivables turnover	75.52	61.66	59.75	58.24	48.22	46.79	41.86	47.28	52.21	53.07	43.12	53.49	50.10
Payables turnover	13.23	10.14	11.22	9.54	12.08	10.21	16.06	9.71	10.94	9.49	9.77	9.86	9.80
Working capital turnover	1.58	1.55	1.63	1.63	1.51	1.25	1.42	1.31	1.22	1.17	1.12	1.10	0.93

Based on the provided data for Airbnb Inc's activity ratios:

1. Inventory Turnover Ratio: The inventory turnover ratio for Airbnb Inc shows significant efficiency in managing its inventory during the periods reported. The ratio increased from 78.30 in December 2021 to 92.09 in June 2022, indicating that the company is able to sell its inventory faster. However, there is missing data for the subsequent periods, which limits a comprehensive analysis of the trend.

2. Receivables Turnover Ratio: The receivables turnover ratio for Airbnb Inc fluctuated over the reported periods but generally remained at healthy levels. The company effectively collected its receivables, with the ratio ranging from 43.12 to 75.52. The increasing trend from June 2022 to December 2024 suggests improved efficiency in collecting payments from customers.

3. Payables Turnover Ratio: Airbnb Inc's payables turnover ratio remained relatively stable overall, indicating consistent payment practices to suppliers. The ratio ranged from 9.49 to 16.06 during the reported periods. An increase in the ratio may suggest the company is taking longer to pay its suppliers, potentially improving cash flow management.

4. Working Capital Turnover Ratio: The working capital turnover ratio for Airbnb Inc improved gradually over the periods reported, indicating efficient utilization of working capital for generating sales. The ratio increased from 0.93 in December 2021 to 1.58 in December 2024. This demonstrates the company's ability to generate sales revenue relative to the working capital invested.

Overall, the activity ratios suggest that Airbnb Inc is effectively managing its operational activities, such as inventory, receivables, payables, and working capital turnover, to drive efficiency and potentially improve financial performance over time.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	3.96	—	4.66
Days of sales outstanding (DSO)	days	4.83	5.92	6.11	6.27	7.57	7.80	8.72	7.72	6.99	6.88	8.46	6.82	7.29
Number of days of payables	days	27.60	36.00	32.53	38.27	30.22	35.75	22.73	37.57	33.36	38.44	37.37	37.00	37.26

Based on the provided data for Airbnb Inc's activity ratios:

1. Days of Inventory on Hand (DOH):
- The company had 4.66 days of inventory on hand as of December 31, 2021, indicating that it turned over its inventory approximately every 4.66 days.
- As of June 30, 2022, the DOH improved to 3.96 days, suggesting a more efficient management of inventory.
- Subsequent data points are not available, limiting further analysis of inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- Airbnb Inc had 7.29 days of sales outstanding as of December 31, 2021, which indicates the average number of days it takes for the company to collect revenue after a sale.
- The DSO improved to 4.83 days by December 31, 2024, which is a positive trend, suggesting faster collection of sales proceeds over the years.
- Overall, the company reduced its DSO over the period, indicating better accounts receivable management.

3. Number of Days of Payables:
- The company had 37.26 days of payables outstanding as of December 31, 2021, showing the average number of days it takes to pay its suppliers.
- Airbnb Inc managed to reduce its payables outstanding to 27.60 days by December 31, 2024, implying the company was able to extend payment terms with its suppliers over time.
- The decreasing trend in days of payables suggests improved efficiency in managing its accounts payable.

In conclusion, Airbnb Inc has shown improvements in its inventory turnover, accounts receivable collection, and accounts payable management over the analyzed period, which indicates greater efficiency in managing its working capital.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021
Fixed asset turnover	75.52	65.01	61.51	59.60	61.78	65.57	69.14	71.69	69.47	67.52	62.28	46.12	35.63
Total asset turnover	0.53	0.49	0.40	0.42	0.48	0.45	0.43	0.44	0.52	0.50	0.39	0.39	0.41

The fixed asset turnover ratio for Airbnb Inc has shown an increasing trend over the period from December 31, 2021, to December 31, 2024, starting at 35.63 and reaching 75.52. This indicates that the company generated $75.52 in revenue for every dollar invested in fixed assets by the end of 2024.

On the other hand, the total asset turnover ratio fluctuated during the same period, with some ups and downs. It started at 0.41 on December 31, 2021, dropped to 0.39 by March 31, 2022, but then increased to 0.53 by December 31, 2024. This implies that the company generated $0.53 in revenue for every dollar invested in total assets by the end of 2024.

Overall, the increasing trend in the fixed asset turnover ratio indicates that Airbnb Inc effectively utilized its fixed assets to generate revenue, while the fluctuation in the total asset turnover ratio suggests variability in the efficiency of utilizing all assets to generate sales. The company should continue monitoring and improving these ratios to ensure optimal utilization of its assets for revenue generation in the long term.