Airbnb Inc (ABNB)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 83.08% | 83.00% | 82.51% | 82.78% | 82.77% | 82.74% | 82.40% | 82.11% | 82.17% | 81.88% | 81.51% | 80.80% | 79.34% |
| Operating profit margin | 23.00% | 15.08% | 15.28% | 15.93% | 15.36% | 23.33% | 21.43% | 20.60% | 21.44% | 20.53% | 17.56% | 13.23% | 7.67% |
| Pretax margin | 30.00% | 21.55% | 21.71% | 22.22% | 21.26% | 29.35% | 26.52% | 24.32% | 23.66% | 21.47% | 17.65% | 13.03% | -5.36% |
| Net profit margin | 23.85% | 17.03% | 46.33% | 48.46% | 48.48% | 56.65% | 25.20% | 23.20% | 22.52% | 20.36% | 16.98% | 12.17% | -6.29% |
Based on the provided data for Airbnb Inc, we can analyze the profitability ratios as follows:
1. Gross Profit Margin: The gross profit margin measures the percentage of revenue that exceeds the cost of goods sold. Over the period from December 31, 2021, to December 31, 2024, Airbnb's gross profit margin improved steadily from 79.34% to 83.08%. This indicates efficient cost management and increasing profitability from the core operations of the company.
2. Operating Profit Margin: The operating profit margin reflects the proportion of revenue that translates into operating profit after deducting operating expenses. Airbnb's operating profit margin showed volatility but generally demonstrated an increasing trend, reaching a peak of 23.00% on December 31, 2024. This suggests improved operational efficiency and effective cost control measures.
3. PreTax Margin: The pre-tax margin represents the percentage of revenue that remains as profit before accounting for taxes. Airbnb's pre-tax margin shows a consistent upward trajectory from -5.36% on December 31, 2021, to 30.00% on December 31, 2024. This significant improvement indicates the company's ability to generate profits before tax expenses efficiently.
4. Net Profit Margin: The net profit margin measures the percentage of revenue that translates into net income after accounting for all expenses, including taxes. Airbnb's net profit margin increased substantially from -6.29% on December 31, 2021, to 23.85% on December 31, 2024. The notable growth in net profit margin reflects the company's ability to generate higher bottom-line profits, indicating strong financial performance and effective cost management.
In conclusion, Airbnb Inc's profitability ratios, including gross profit margin, operating profit margin, pre-tax margin, and net profit margin, have shown positive trends over the period analyzed. The company has successfully improved its profitability, efficiency, and overall financial performance, which is indicative of robust financial management and operational effectiveness.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.18% | 7.34% | 6.07% | 6.62% | 7.35% | 10.49% | 9.23% | 9.00% | 11.24% | 10.22% | 6.77% | 5.10% | 3.13% |
| Return on assets (ROA) | 12.63% | 8.29% | 18.40% | 20.13% | 23.21% | 25.47% | 10.86% | 10.14% | 11.80% | 10.13% | 6.55% | 4.69% | -2.57% |
| Return on total capital | 24.53% | 15.52% | 15.99% | 16.42% | 14.95% | 20.24% | 27.71% | 24.72% | 23.88% | 21.82% | 17.86% | 12.96% | 6.35% |
| Return on equity (ROE) | 31.48% | 21.65% | 60.53% | 62.55% | 58.69% | 59.85% | 45.46% | 38.35% | 34.05% | 29.40% | 23.80% | 16.91% | -7.37% |
Analyzing the profitability ratios of Airbnb Inc, we observe a positive trend in operating profitability over the quarters, with Operating Return on Assets (Operating ROA) consistently increasing from 3.13% in December 2021 to a peak of 12.18% in December 2024. This indicates the company's ability to generate earnings from its operating activities relative to its total assets.
Return on Assets (ROA) also shows an upward trend, starting at -2.57% in December 2021 and reaching 12.63% in December 2024. This signifies the company's efficiency in utilizing its assets to generate profits over the years.
Return on Total Capital reflects the return generated on the total capital employed by the company. The ratio peaked at 27.71% in June 30, 2023, indicating the company's ability to generate returns for both equity and debt holders, albeit with some fluctuations over the quarters.
Return on Equity (ROE) exhibits significant growth, starting at -7.37% in December 2021 and reaching 31.48% in December 2024. This demonstrates the effectiveness of Airbnb in generating profits for its shareholders relative to their equity investments.
Overall, the profitability ratios of Airbnb Inc show a positive trajectory, indicating efficient utilization of assets and capital to generate returns for both the company and its shareholders over the quarters analyzed.