Airbnb Inc (ABNB)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	US$ in thousands	2,648,000	4,792,000	1,893,000	-352,000
Total assets	US$ in thousands	20,959,000	20,645,000	16,038,000	13,708,000
ROA		12.63%	23.21%	11.80%	-2.57%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $2,648,000K ÷ $20,959,000K
= 12.63%

Airbnb Inc's return on assets (ROA) has exhibited significant fluctuations over the years based on the provided data. The ROA was negative at -2.57% as of December 31, 2021, indicating that the company's net income was insufficient to generate a positive return relative to its asset base.

However, there was a notable improvement in ROA to 11.80% as of December 31, 2022, reflecting an initial turnaround in the company's asset utilization and profitability. This suggests that Airbnb was able to generate a higher return on its assets compared to the previous year.

The ROA further increased to 23.21% by December 31, 2023, indicating a substantial enhancement in Airbnb's efficiency in generating profits from its assets. This sharp rise suggests that the company made significant progress in optimizing its asset utilization and improving overall financial performance.

Despite the impressive growth in 2023, the ROA decreased to 12.63% by December 31, 2024. While the return on assets remained positive, this decline could indicate a decrease in either profitability or asset efficiency compared to the previous year.

Overall, the fluctuating trend in Airbnb Inc's ROA highlights the company's varying levels of operational efficiency and profitability over the analyzed period. It is essential for stakeholders to closely monitor these changes to assess the company's performance and sustainability.