Airbnb Inc (ABNB)
Return on total capital
| 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 1,991,000 | 1,990,000 | 2,000,000 | 2,000,000 | 1,987,000 | 1,985,660 | 1,984,620 | 1,983,580 | 1,983,000 | 1,981,500 | 1,980,460 | 1,979,400 |
| Total stockholders’ equity | US$ in thousands | 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 | 4,448,930 | 3,393,200 | 3,159,420 |
| Return on total capital | 14.95% | 20.24% | 27.71% | 24.72% | 23.88% | 21.82% | 17.86% | 12.96% | 6.35% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 positive trend over the past eight quarters. The return on total capital increased from 12.98% in Q1 2022 to 27.76% in Q2 2023, with the most significant improvement occurring in the most recent quarters. This indicates that the company has been more effective in generating profits relative to the total capital employed, reflecting efficient utilization of resources. The consistent growth in return on total capital is a positive indicator of Airbnb Inc's financial performance and effectiveness in generating returns for its investors.
Peer comparison
Dec 31, 2023