Airbnb Inc (ABNB)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 8,412,000 | 8,165,000 | 5,560,000 | 4,775,000 |
| ROE | 31.48% | 58.69% | 34.05% | -7.37% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,648,000K ÷ $8,412,000K
= 31.48%
Based on the provided data, Airbnb Inc's return on equity (ROE) has shown significant fluctuations over the four-year period from December 31, 2021, to December 31, 2024.
- In December 2021, Airbnb Inc reported a negative ROE of -7.37%, indicating that the company's net income was insufficient to generate a positive return on shareholders' equity.
- By December 2022, Airbnb Inc's ROE improved significantly to 34.05%, indicating a positive turnaround in the company's profitability and efficiency in generating returns for its shareholders.
- Subsequently, the company's ROE continued to increase to 58.69% by December 2023, reflecting a robust financial performance and effective utilization of equity to generate profits.
- However, by December 2024, Airbnb Inc's ROE declined to 31.48%, which, while lower than the previous year, still indicates a healthy return on equity relative to the industry average.
Overall, the fluctuating trend in Airbnb Inc's ROE suggests that the company has experienced both challenges and successes in maximizing shareholder value and profitability over the period analyzed. Additional information and analysis would be needed to fully understand the factors driving these changes in ROE and evaluate the company's long-term financial performance.
Peer comparison
Dec 31, 2024