Airbnb Inc (ABNB)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | -22.77 | -30.08 | -26.42 | -32.00 | -22.65 | -27.95 | -14.01 | -29.85 | -26.37 | -31.56 | -24.94 | -30.18 | -25.31 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 4.83 – 27.60
= -22.77
The cash conversion cycle of Airbnb Inc has shown consistent negative values over the period reported, indicating efficient cash flow management. The company's ability to convert resources such as inventory and accounts receivable into cash quickly is evident as the cycle averages around -25 days, meaning that Airbnb is able to convert its cash invested in the operating cycle back into cash every -25 days. This efficient cash conversion cycle suggests that Airbnb Inc has effective working capital management practices in place, allowing the company to operate smoothly without tying up excessive cash in its operations.
Peer comparison
Dec 31, 2024