Airbnb Inc (ABNB)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,553,000 | 1,518,000 | 1,802,000 | 429,000 |
| Interest expense | US$ in thousands | — | 83,000 | 24,000 | 438,000 |
| Interest coverage | — | 18.29 | 75.08 | 0.98 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,553,000K ÷ $—K
= —
Interest coverage ratio is a financial metric that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio typically suggests that the company is in a better position to meet its interest obligations.
Based on the data provided for Airbnb Inc, the interest coverage ratio for the fiscal years ending on December 31, 2021, 2022, and 2023 were 0.98, 75.08, and 18.29 respectively. An interest coverage ratio of less than 1, as shown for 2021, indicates that the company is not generating enough operating income to cover its interest expenses, which may raise concerns about its financial stability and ability to meet debt obligations.
The significant improvement in the interest coverage ratio from 2021 to 2022 (from 0.98 to 75.08) suggests a substantial increase in operating income relative to interest expenses, indicating a healthier financial position for the company. However, the ratio declined in 2023 to 18.29, although it still indicates an ability to cover interest payments comfortably.
The data for December 31, 2024, is not available (indicated by "—"), making it impossible to determine the interest coverage ratio for that period. It would be essential for stakeholders to monitor this ratio over time to assess Airbnb Inc's ability to meet its interest obligations and manage its debt effectively.
Peer comparison
Dec 31, 2024