Airbnb Inc (ABNB)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | 4,792,000 | 1,893,000 | -352,000 |
| Total stockholders’ equity | US$ in thousands | 8,165,000 | 5,560,000 | 4,775,000 |
| ROE | 58.69% | 34.05% | -7.37% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,792,000K ÷ $8,165,000K
= 58.69%
Airbnb Inc's return on equity (ROE) has shown a significant improvement over the last five years. The ROE increased from a negative figure in 2019 and 2020 to a positive trend in subsequent years, reaching 58.69% by the end of 2023. This improvement indicates that the company's profitability relative to shareholders' equity has strengthened over time. The negative ROE in 2019 and 2020 suggests the company struggled in generating profit compared to the equity invested by shareholders. However, the positive ROE in the following years reflects a turnaround in the company's financial performance, demonstrating its ability to generate higher returns on shareholders' equity. The upward trend in ROE showcases improved efficiency and effectiveness in utilizing the shareholders' investment to generate profits, indicating a positive outlook for Airbnb Inc's financial health and performance.
Peer comparison
Dec 31, 2023