Airbnb Inc (ABNB)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,864,000 | 7,670,000 | 7,882,000 | 7,829,000 | 6,874,000 | 8,175,000 | 7,905,000 | 8,166,000 | 7,378,000 | 7,523,690 | 7,837,990 | 6,886,630 | 6,067,000 |
| Short-term investments | US$ in thousands | 3,747,000 | 3,583,000 | 3,369,000 | 3,264,000 | 3,197,000 | 2,787,000 | 2,435,000 | 2,428,000 | 2,244,000 | 2,103,900 | 2,057,490 | 2,435,660 | 2,255,000 |
| 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 |
| Cash ratio | 1.04 | 0.99 | 0.71 | 0.78 | 1.01 | 1.12 | 0.76 | 0.87 | 1.21 | 1.20 | 0.88 | 0.95 | 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 provides insights into the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as it shows the proportion of current liabilities that can be covered by the company's cash on hand.
Based on the provided data, Airbnb Inc's cash ratio fluctuated over the period from December 31, 2021, to December 31, 2024. The cash ratio started at 1.31 on December 31, 2021, indicating that the company had enough cash to cover 131% of its current liabilities at that time.
However, the cash ratio decreased to 0.95 on March 31, 2022, and continued to fluctuate throughout the following quarters. The lowest point was seen on June 30, 2024, with a cash ratio of 0.71, suggesting a lower ability to cover short-term obligations with cash reserves during that period.
On the other hand, the cash ratio improved to 1.04 by December 31, 2024, indicating an increase in liquidity compared to the previous quarter. This improvement implies that Airbnb Inc had a more favorable position in meeting its short-term financial obligations with available cash.
Overall, the fluctuation in Airbnb Inc's cash ratio over the years highlights the importance of monitoring liquidity levels to ensure the company can meet its short-term obligations efficiently and effectively. It also underscores the need for effective cash management strategies to maintain a healthy liquidity position.
Peer comparison
Dec 31, 2024