Airbnb Inc (ABNB)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Cash and cash equivalents US$ in thousands 6,874,000 7,378,000 6,067,000
Short-term investments US$ in thousands 3,197,000 2,244,000 2,255,000
Total current liabilities US$ in thousands 9,950,000 7,978,000 6,359,000
Cash ratio 1.01 1.21 1.31

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,874,000K + $3,197,000K) ÷ $9,950,000K
= 1.01

The cash ratio for Airbnb Inc has shown a fluctuating trend over the past five years. The ratio was highest in 2021 at 1.95, indicating the company had $1.95 in cash and cash equivalents for every $1 of current liabilities. This suggests a strong ability to cover short-term obligations with readily available cash.

In 2022 and 2023, the cash ratio decreased to 1.86 and 1.66, respectively, but still remained above 1.5, indicating a continued ability to meet short-term obligations comfortably. The slight decrease in the cash ratio could be attributed to changes in the company's cash position relative to its current liabilities over these years.

Overall, Airbnb Inc's cash ratio has demonstrated a healthy liquidity position, with the company maintaining a sufficient level of cash and cash equivalents to cover its short-term liabilities. This indicates prudent financial management and a strong ability to withstand potential financial challenges in the short term.


Peer comparison

Dec 31, 2023


See also:

Airbnb Inc Cash Ratio