Airbnb Inc (ABNB)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,959,000 | 20,645,000 | 16,038,000 | 13,708,000 |
| Total stockholders’ equity | US$ in thousands | 8,412,000 | 8,165,000 | 5,560,000 | 4,775,000 |
| Financial leverage ratio | 2.49 | 2.53 | 2.88 | 2.87 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,959,000K ÷ $8,412,000K
= 2.49
The financial leverage ratio of Airbnb Inc has shown a slight fluctuation over the years based on the provided data. As of December 31, 2021, the ratio stood at 2.87, and it increased marginally to 2.88 by December 31, 2022. However, there was a notable decrease in the financial leverage ratio to 2.53 as of December 31, 2023, indicating a potential improvement in the company's use of debt to finance its operations. This trend continued with a further decrease to 2.49 by December 31, 2024.
Overall, the financial leverage ratio demonstrates how the company relies on debt financing in relation to its equity. A higher ratio suggests a higher dependency on debt, which can amplify risks but also potentially boost returns. Conversely, a lower ratio indicates a more conservative approach to debt financing, which may enhance financial stability but could limit growth opportunities. It appears that Airbnb Inc has experienced a moderate fluctuation in its financial leverage ratio, reflecting varying levels of debt utilization over the analyzed period.
Peer comparison
Dec 31, 2024