Airbnb Inc (ABNB)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Revenue	US$ in thousands	9,917,000	8,337,000	5,577,050
Total current assets	US$ in thousands	16,509,000	14,861,000	12,386,000
Total current liabilities	US$ in thousands	9,950,000	7,978,000	6,359,000
Working capital turnover		1.51	1.21	0.93

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,917,000K ÷ ($16,509,000K – $9,950,000K)
= 1.51

The working capital turnover for Airbnb Inc has fluctuated over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.

In 2019, the working capital turnover was significantly high at 3.62, suggesting that Airbnb was effectively using its working capital to generate revenue. However, this figure dropped to 0.89 in 2020, indicating a decrease in efficiency.

Subsequently, we see an improvement in the working capital turnover ratio in 2021 and 2022, reaching 0.99 and 1.22 respectively. This suggests that Airbnb was able to better utilize its working capital to generate revenue during these years.

The ratio further increased to 1.51 in 2023, indicating an improvement in efficiency in utilizing working capital to generate revenue compared to the previous year.

Overall, the trend in the working capital turnover ratio for Airbnb Inc shows fluctuations, with some years demonstrating more efficient utilization of working capital than others.