Airbnb Inc (ABNB)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	11,102,000	10,791,000	10,456,000	10,192,000	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	17,180,000	18,319,000	22,252,000	20,393,000	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
Total current liabilities	US$ in thousands	10,161,000	11,336,000	15,828,000	14,139,000	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
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $11,102,000K ÷ ($17,180,000K – $10,161,000K)
= 1.58

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. A higher turnover ratio indicates that the company is effectively managing its working capital.

Based on the data provided, Airbnb Inc's working capital turnover has shown a positive trend over the evaluated period. The ratio increased gradually from 0.93 on December 31, 2021, to 1.58 on December 31, 2024. This indicates an improvement in the company's ability to generate revenue relative to its working capital.

Specifically, the working capital turnover ratio increased from 0.93 on December 31, 2021, to 1.63 on June 30, 2024, holding at the same level on September 30, 2024. This suggests that Airbnb Inc has been able to more efficiently utilize its working capital to drive revenue growth during that period.

However, there was a slight dip in the working capital turnover ratio from June 30, 2024, to September 30, 2024, dropping to 1.55. This may have been influenced by changes in the company's business operations or management decisions affecting the efficiency of working capital utilization.

Overall, the upward trend in the working capital turnover ratio for Airbnb Inc demonstrates an improvement in the company's operational efficiency and financial performance over the evaluated period, albeit with slight fluctuations.