Airbnb Inc (ABNB)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,864,000 | 6,874,000 | 7,378,000 | 6,067,000 |
| Short-term investments | US$ in thousands | 3,747,000 | 3,197,000 | 2,244,000 | 2,255,000 |
| Total current liabilities | US$ in thousands | 10,161,000 | 9,950,000 | 7,978,000 | 6,359,000 |
| Cash ratio | 1.04 | 1.01 | 1.21 | 1.31 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,864,000K
+ $3,747,000K)
÷ $10,161,000K
= 1.04
The cash ratio of Airbnb Inc has been relatively stable over the past four years. It decreased from 1.31 on December 31, 2021, to 1.21 on December 31, 2022, before dropping further to 1.01 on December 31, 2023. However, there was a slight increase to 1.04 on December 31, 2024.
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A ratio of 1 or higher is generally considered healthy, indicating that Airbnb Inc had sufficient cash on hand to cover its short-term obligations throughout the period in question.
While the downward trend in the cash ratio may raise some concerns about liquidity management, the ratio remaining above 1 suggests that Airbnb Inc has maintained a strong position in terms of its ability to meet its short-term financial obligations with its available cash resources.
Peer comparison
Dec 31, 2024