Airbnb Inc (ABNB)

Debt-to-equity ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	1,995,000	1,994,000	1,993,000	1,992,000	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
Total stockholders’ equity	US$ in thousands	8,412,000	8,488,000	8,002,000	7,896,000	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
Debt-to-equity ratio		0.24	0.23	0.25	0.25	0.24	0.22	0.40	0.38	0.36	0.36	0.38	0.42	0.42

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,995,000K ÷ $8,412,000K
= 0.24

The debt-to-equity ratio of Airbnb Inc has displayed a downward trend over the period from December 31, 2021, to December 31, 2024. The ratio decreased from 0.42 on December 31, 2021, to 0.24 on December 31, 2024. This decreasing trend indicates that the company has been reducing its reliance on debt in relation to equity over the years.

During this period, the company has maintained a relatively stable debt-to-equity ratio, with minor fluctuations in the range of 0.22 to 0.42. However, the most significant decrease occurred between March 31, 2024, and September 30, 2024, where the ratio dropped from 0.25 to 0.23.

A lower debt-to-equity ratio generally suggests that a company is financing its operations more through equity rather than debt, which can be viewed positively by investors and creditors. The decreasing trend in Airbnb Inc's debt-to-equity ratio indicates improved financial stability and reduced financial risk over time. This trend reflects positively on the company's ability to manage its capital structure effectively.