Airbnb Inc (ABNB)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Debt-to-assets ratio | 0.10 | 0.10 | 0.12 | 0.14 |
| Debt-to-capital ratio | 0.19 | 0.20 | 0.26 | 0.29 |
| Debt-to-equity ratio | 0.24 | 0.24 | 0.36 | 0.42 |
| Financial leverage ratio | 2.49 | 2.53 | 2.88 | 2.87 |
Based on the provided solvency ratios for Airbnb Inc, we can observe the following trends:
1. Debt-to-Assets Ratio:
- The debt-to-assets ratio has decreased from 0.14 in 2021 to 0.10 in 2024. This indicates that the proportion of debt relative to total assets has been declining over the years, suggesting a lower level of financial risk.
2. Debt-to-Capital Ratio:
- Similarly, the debt-to-capital ratio has seen a consistent downward trend, decreasing from 0.29 in 2021 to 0.19 in 2024. This implies that the company is relying less on debt financing in relation to its overall capital structure.
3. Debt-to-Equity Ratio:
- The debt-to-equity ratio has also exhibited a decreasing pattern, dropping from 0.42 in 2021 to 0.24 in 2024. This indicates that the company's reliance on debt relative to equity has been decreasing, potentially making it less leveraged.
4. Financial Leverage Ratio:
- The financial leverage ratio, which measures the extent of a company's leverage, has also shown a declining trend from 2.87 in 2021 to 2.49 in 2024. This suggests that the company's financial risk may have decreased as it is using less debt to finance its operations.
Overall, the solvency ratios for Airbnb Inc demonstrate a positive trend towards lower leverage and decreased reliance on debt financing over the analyzed period. These improvements may enhance the company's financial stability and resilience to economic downturns.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Interest coverage | — | 18.29 | 75.08 | 0.98 |
The interest coverage ratio reflects Airbnb Inc's ability to meet its interest obligations with its operating profit. Analyzing the data provided:
1. As of December 31, 2021, the interest coverage ratio was 0.98, indicating that Airbnb's operating profit was just sufficient to cover its interest expenses. A ratio below 1 may suggest potential financial distress as the company may struggle to meet interest payments.
2. By December 31, 2022, the interest coverage ratio significantly improved to 75.08, signaling a substantial increase in Airbnb's ability to cover its interest expenses. This improvement indicates enhanced profitability or reduced interest costs.
3. The ratio as of December 31, 2023, stood at 18.29, showing Airbnb's continued ability to cover its interest payments comfortably. A ratio above 1 indicates that the company's earnings are more than enough to cover its interest payments.
4. Unfortunately, the data for December 31, 2024, is not available ("-"). It would be essential to monitor future interest coverage ratios to assess the company's financial health.
Overall, the trend from 2021 to 2023 reflects an improving ability of Airbnb Inc to cover its interest expenses, signifying better financial stability and operational performance during this period.