Airbnb Inc (ABNB)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Operating income | US$ in thousands | 1,518,000 | 1,802,000 | 429,000 |
| Total assets | US$ in thousands | 20,645,000 | 16,038,000 | 13,708,000 |
| Operating ROA | 7.35% | 11.24% | 3.13% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,518,000K ÷ $20,645,000K
= 7.35%
Operating Return on Assets (ROA) is a key financial metric that assesses the ability of a company to generate profits from its operating activities relative to the assets it utilizes. For Airbnb Inc, the trend in operating ROA over the past five years reveals fluctuating performance levels.
In 2023, Airbnb Inc achieved an operating ROA of 7.35%, indicating that the company generated a return of 7.35 cents for every dollar of assets employed in its operations. This signifies a decline from the previous year's operating ROA of 11.79%, suggesting a relative decrease in efficiency in utilizing its assets to generate operating income.
Comparing the 2023 performance with earlier years, Airbnb Inc's operating ROA was notably higher than the figures in 2021 and 2020, where it recorded 3.95% and -32.86% respectively. The significant negative operating ROA in 2020 indicates that the company faced challenges in generating operating profits compared to the asset base utilized. However, the positive trend in the subsequent years demonstrates an improvement in this aspect.
Although 2023's operating ROA of 7.35% reflects positive earnings relative to asset deployment, it is essential for Airbnb Inc to further enhance its operational efficiency to drive profitability and achieve sustainable growth in the future. Continued monitoring and analysis of operating ROA can provide insights into the company's asset utilization and overall operational performance.
Peer comparison
Dec 31, 2023