Airbnb Inc (ABNB)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.20 | 0.26 | 0.29 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,991,000K ÷ ($1,991,000K + $8,165,000K)
= 0.20
The debt-to-capital ratio of Airbnb Inc has been fluctuating over the past five years. In 2019, the company had a debt-to-capital ratio of 0.00, indicating that there was no debt used in the capital structure that year. However, from 2020 to 2023, the ratio increased steadily from 0.39 to 0.20, signifying a greater reliance on debt to finance its operations and investments relative to its total capital structure. This downward trend in the ratio suggests that Airbnb Inc has been reducing its debt levels in relation to its total capital over the recent years. Despite the fluctuations, the decreasing trend in the debt-to-capital ratio may indicate improved financial health and reduced financial risk for the company.
Peer comparison
Dec 31, 2023