Airbnb Inc (ABNB)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 20,645,000 | 16,038,000 | 13,708,000 |
| Total stockholders’ equity | US$ in thousands | 8,165,000 | 5,560,000 | 4,775,000 |
| Financial leverage ratio | 2.53 | 2.88 | 2.87 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,645,000K ÷ $8,165,000K
= 2.53
The financial leverage ratio of Airbnb Inc has shown fluctuation over the past five years. The ratio decreased from 3.43 in 2019 to 2.53 in 2023, indicating a decline in the company's reliance on debt to finance its operations. This trend suggests that Airbnb has been able to improve its financial health by reducing its debt levels relative to its equity. However, it is important to note that the ratio increased in 2020 and then decreased in the following years, indicating some variability in the company's capital structure. Overall, a decreasing financial leverage ratio signals lower financial risk and a healthier balance sheet for Airbnb Inc.
Peer comparison
Dec 31, 2023