Airbnb Inc (ABNB)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.69 | 1.62 | 1.41 | 1.44 | 1.66 | 1.78 | 1.47 | 1.55 | 1.86 | 1.85 | 1.58 | 1.61 | 1.95 |
| Quick ratio | 1.06 | 1.01 | 0.72 | 0.80 | 1.03 | 1.14 | 0.77 | 0.88 | 1.23 | 1.22 | 0.89 | 0.97 | 1.33 |
| 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 |
The liquidity ratios of Airbnb Inc, based on the provided data, demonstrate the company's ability to meet its short-term financial obligations.
1. Current Ratio: The current ratio measures the company's ability to cover its short-term liabilities with its current assets. From December 31, 2021 to December 31, 2024, Airbnb's current ratio fluctuated between 1.41 and 1.95. The ratio remained above 1 throughout the period, indicating that Airbnb had more current assets than current liabilities. The ratio decreased over time, which may suggest a potential decrease in liquidity or increasing short-term obligations.
2. Quick Ratio: The quick ratio, also known as the acid-test ratio, is a more conservative measure of liquidity as it excludes inventory from current assets. From December 31, 2021 to December 31, 2024, Airbnb's quick ratio ranged between 0.72 and 1.33. Similar to the current ratio, the quick ratio decreased over time, indicating a decline in the company's ability to meet short-term obligations without relying on inventory.
3. Cash Ratio: The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. From December 31, 2021 to December 31, 2024, Airbnb's cash ratio varied between 0.71 and 1.31. The ratio fluctuated over the period, showing Airbnb's ability to cover short-term liabilities with cash on hand decreased at certain points.
Overall, while Airbnb Inc maintained ratios above 1 for all three liquidity metrics, the declining trend observed in the current, quick, and cash ratios signals a potential decrease in the company's liquidity position over the analyzed period. Monitoring these ratios regularly is crucial to ensure Airbnb can meet its short-term financial commitments effectively.
See also:
Additional liquidity measure
| 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 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 |
The cash conversion cycle of Airbnb Inc over the specified periods reflects negative values, indicating efficient management of cash flow. The company is able to convert its investments in inventory and other resources back into cash quickly. The trend shows a relatively stable cycle in the range of -14.01 to -32.00 days, with periodic fluctuations. This efficient management suggests that Airbnb is effective in converting its investments into cash and managing its working capital effectively, which may lead to improved liquidity and operational efficiency.