Airbnb Inc (ABNB)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,553,000 | 1,627,000 | 1,598,000 | 1,624,000 | 1,518,000 | 2,249,000 | 1,956,000 | 1,802,000 | 1,802,000 | 1,642,250 | 1,291,223 | 870,945 | 429,000 |
| Long-term debt | US$ in thousands | 1,995,000 | 1,994,000 | 1,993,000 | 1,992,000 | 1,991,000 | 1,990,000 | 2,000,000 | 2,000,000 | 1,987,000 | 1,985,660 | 1,984,620 | 1,983,580 | 1,983,000 |
| Total stockholders’ equity | US$ in thousands | 8,412,000 | 8,488,000 | 8,002,000 | 7,896,000 | 8,165,000 | 9,123,000 | 5,059,000 | 5,291,000 | 5,560,000 | 5,540,000 | 5,245,000 | 4,737,000 | 4,775,000 |
| 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,553,000K ÷ ($1,995,000K + $8,412,000K)
= 24.53%
Airbnb Inc's return on total capital has shown fluctuations over the period from December 31, 2021, to December 31, 2024. The return on total capital increased from 6.35% in December 2021 to 27.71% in June 30, 2023, indicating a period of significant improvement in the company's profitability and efficiency in utilizing its capital.
However, there was a decline in the return on total capital to 14.95% by December 31, 2023. This downward trend continued into the first half of 2024, with returns dropping to 15.99% by June 30, 2024, and further to 15.52% by September 30, 2024.
By the end of 2024, Airbnb Inc's return on total capital experienced a notable rebound, reaching 24.53%. This improvement suggests that the company may have undertaken strategic measures to enhance its capital allocation and operational performance.
Overall, the return on total capital for Airbnb Inc reflects a mixed performance, with periods of growth and consolidation. It is essential for investors and stakeholders to closely monitor these trends to assess the company's ability to generate returns from its total capital investments effectively.
Peer comparison
Dec 31, 2024