Airbnb Inc (ABNB)

Working capital turnover

		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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Revenue (ttm)	US$ in thousands	9,885,000	9,638,930	9,126,340	8,746,450	8,405,530	7,998,080	7,352,000	6,583,090	5,593,549
Total current assets	US$ in thousands	16,509,000	17,523,000	20,052,000	18,869,000	14,861,000	14,866,500	17,825,600	15,761,400	12,386,000	12,220,900	14,096,000	10,926,600
Total current liabilities	US$ in thousands	9,950,000	9,821,000	13,624,000	12,212,000	7,978,000	8,015,330	11,287,200	9,773,780	6,359,000	6,559,310	9,496,350	6,573,190
Working capital turnover		1.51	1.25	1.42	1.31	1.22	1.17	1.12	1.10	0.93

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,885,000K ÷ ($16,509,000K – $9,950,000K)
= 1.51

Airbnb Inc's working capital turnover has shown variations over the past eight quarters. The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio typically indicates more efficient use of working capital.

In Q4 2023, the working capital turnover ratio was 1.51, a significant increase from the previous quarter at 1.25 in Q3 2023. This indicates that the company was able to generate more revenue using its working capital in Q4 2023.

Comparing the ratios over the past year, there has been a general upward trend in the working capital turnover ratio since Q1 2022, where the ratio was at 1.10. This suggests that Airbnb Inc has been improving its efficiency in utilizing its working capital to generate revenue.

It is essential for the company to maintain or improve its working capital turnover ratio to ensure that it continues to efficiently use its working capital resources. Additionally, management should continue monitoring and optimizing its working capital management practices to sustain or further improve its operational efficiency.