Airbnb Inc (ABNB)
Debt-to-equity 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-equity ratio | 0.24 | 0.36 | 0.42 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,991,000K ÷ $8,165,000K
= 0.24
The debt-to-equity ratio of Airbnb Inc has shown a decreasing trend over the past five years. In 2019, the company had no debt, resulting in a debt-to-equity ratio of 0.00. From 2020 to 2023, the ratio increased each year but at a decreasing rate, indicating a gradual shift towards a higher level of debt relative to equity.
The decreasing trend in the debt-to-equity ratio may suggest that Airbnb Inc has been relying more on equity financing compared to debt financing, which can be a positive indicator of financial stability and lower financial risk. However, a declining ratio could also signify lower leverage and potentially slower growth if the company is not efficiently utilizing debt to finance its operations or investments.
Overall, the decreasing trend of the debt-to-equity ratio for Airbnb Inc indicates a shift in the company's capital structure towards a more equity-based financing approach over the analyzed period.
Peer comparison
Dec 31, 2023