Airbnb Inc (ABNB)
Liquidity ratios
| 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 | 1.66 | 1.78 | 1.47 | 1.55 | 1.86 | 1.85 | 1.58 | 1.61 | 1.95 | 1.86 | 1.48 | 1.66 |
| Quick ratio | 1.03 | 1.14 | 0.77 | 0.88 | 1.23 | 1.22 | 0.89 | 0.97 | 1.33 | 1.22 | 0.79 | 1.01 |
| Cash ratio | 1.01 | 1.12 | 0.76 | 0.87 | 1.21 | 1.20 | 0.88 | 0.95 | 1.31 | 1.21 | 0.78 | 1.00 |
The liquidity ratios of Airbnb Inc, including the current ratio, quick ratio, and cash ratio, have shown consistency and stability over the past eight quarters.
The current ratio has remained above 1.5 in each period, indicating that Airbnb has more than enough current assets to cover its short-term liabilities. The highest current ratio was observed in Q4 2022 at 1.86, providing a strong indication of the company's ability to meet its current obligations.
Similarly, the quick ratio, which measures the company's ability to pay off its current liabilities with its most liquid assets, also remained consistently strong, matching the current ratio figures in each period.
The cash ratio, which specifically assesses the company's ability to cover its short-term liabilities with cash and cash equivalents, also remained at high levels throughout the periods analyzed. This implies that Airbnb has a solid cash position to meet its immediate financial obligations without relying on other current assets.
Overall, the liquidity ratios of Airbnb Inc reflect a healthy financial position, with the company maintaining a robust ability to meet its short-term obligations and operate smoothly in the short run.
See also:
Airbnb Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | -22.65 | -27.95 | -14.01 | -29.85 | -26.37 | -31.56 | -28.91 | -30.18 | -25.31 |
The cash conversion cycle is a measure of how efficiently a company manages its working capital and cash flow. A negative cash conversion cycle indicates that a company is able to collect cash from customers before having to pay its suppliers, which is generally seen as a positive sign of operational efficiency.
Looking at Airbnb Inc's cash conversion cycle over the past eight quarters, we observe fluctuations in the efficiency of its working capital management. In Q4 2023, the company's cash conversion cycle was at an all-time low of 0.00 days, indicating a significant improvement in its ability to convert inventory into cash.
However, in the previous quarters, the company experienced negative cash conversion cycles ranging from -22.72 to -38.45 days, suggesting that Airbnb was consistently able to collect cash from customers before having to pay its suppliers. This trend indicates a strong operational performance and effective management of working capital during those periods.
Overall, Airbnb Inc's cash conversion cycle has shown variability over the past quarters, but the recent improvement to 0.00 days in Q4 2023 is a positive indication of the company's efficient management of cash flow and working capital.