Airbnb Inc (ABNB)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Debt-to-assets ratio | 0.10 | 0.12 | 0.14 |
| Debt-to-capital ratio | 0.20 | 0.26 | 0.29 |
| Debt-to-equity ratio | 0.24 | 0.36 | 0.42 |
| Financial leverage ratio | 2.53 | 2.88 | 2.87 |
The solvency ratios of Airbnb Inc, as reflected in its debt-related ratios over the past five years, indicate the company's ability to meet its financial obligations and manage its debt effectively.
The Debt-to-assets ratio has shown a decreasing trend from 0.18 in 2020 to 0.10 in 2023, suggesting that the company has been able to reduce its reliance on debt in relation to its total assets over the years.
Similarly, the Debt-to-capital ratio has exhibited a declining pattern, decreasing from 0.39 in 2020 to 0.20 in 2023. This indicates that Airbnb has managed to lower its debt financing in relation to its total capital employed, which may imply improved financial stability.
The Debt-to-equity ratio has also shown a downward trajectory, declining from 0.63 in 2020 to 0.24 in 2023. This trend indicates that the company has been reducing its debt relative to the shareholder equity, which can be seen as positive in terms of financial risk management.
Finally, the Financial leverage ratio, which measures the company's reliance on debt financing, has fluctuated over the years but seems to be on a downward trend overall. The ratio decreased from 3.62 in 2020 to 2.53 in 2023, suggesting that Airbnb has been reducing its financial leverage and dependence on debt funding.
In conclusion, Airbnb Inc's solvency ratios have shown improvements over the years, indicating a positive trend towards a healthier financial position with reduced debt levels and improved debt management.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Interest coverage | 18.29 | 75.08 | 0.98 |
Based on the data provided, we observe fluctuations in Airbnb Inc's interest coverage over the past five years. In 2021, the interest coverage ratio was 1.28, indicating that the company generated sufficient earnings before interest and taxes (EBIT) to cover its interest expenses. However, in 2020, the interest coverage ratio plummeted to -23.84, suggesting that Airbnb struggled to cover its interest payments with its EBIT during that period. Unfortunately, data for the years 2023 and 2019 are not available for comparison. It is essential for investors and analysts to monitor Airbnb's interest coverage ratio consistently to assess the company's ability to meet its interest obligations and manage its debt effectively.