Airbnb Inc (ABNB)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 147,000 | 205,000 | 161,000 | 111,649 |
| Total current liabilities | US$ in thousands | 10,161,000 | 9,950,000 | 7,978,000 | 6,359,000 |
| Quick ratio | 1.06 | 1.03 | 1.23 | 1.33 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,864,000K
+ $3,747,000K
+ $147,000K)
÷ $10,161,000K
= 1.06
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher generally indicates that a company has an adequate level of liquid assets to cover its current liabilities.
Based on the data provided for Airbnb Inc, the quick ratio has shown a decreasing trend over the years. In December 31, 2021, the quick ratio was 1.33, indicating that the company had $1.33 of quick assets available to cover each dollar of current liabilities. By December 31, 2022, the quick ratio decreased to 1.23, suggesting a slight decline in liquidity.
Further, by December 31, 2023, the quick ratio decreased to 1.03, indicating a potential decrease in the company's ability to cover its short-term obligations with its liquid assets. However, by December 31, 2024, the quick ratio slightly improved to 1.06, but it still remains lower compared to the initial quick ratio in 2021.
Overall, the decreasing trend in the quick ratio for Airbnb Inc raises some concerns about the company's liquidity position over the years. It is essential for investors and stakeholders to monitor this ratio and understand the reasons behind the changes to assess the company's ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024