Airbnb Inc (ABNB)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,518,000 | 1,802,000 | 429,000 |
| Long-term debt | US$ in thousands | 1,991,000 | 1,987,000 | 1,983,000 |
| Total stockholders’ equity | US$ in thousands | 8,165,000 | 5,560,000 | 4,775,000 |
| Return on total capital | 14.95% | 23.88% | 6.35% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,518,000K ÷ ($1,991,000K + $8,165,000K)
= 14.95%
Airbnb Inc's return on total capital has shown a mixed performance over the past five years. In 2023, the return on total capital stood at 14.95%, indicating that the company generated a return of 14.95% on its total capital employed during the year. This represents a decrease from the previous year's figure of 25.06%, suggesting a potential decline in the company's ability to generate returns on its capital.
Comparing the figures to earlier years, Airbnb Inc's return on total capital in 2023 appears stronger than in 2021 when it was at 8.02%. However, it is worth noting that in 2020 and 2019, the company reported negative returns on total capital, with figures of -72.66% and -20.94% respectively. These negative returns indicate that in those years, Airbnb Inc experienced challenges in generating profits relative to the amount of capital invested.
Overall, the trend in Airbnb Inc's return on total capital highlights variability in the company's profitability and efficiency in utilizing its total capital over the past five years. Further analysis would be needed to understand the factors driving these fluctuations and to assess the company's long-term financial performance.
Peer comparison
Dec 31, 2023