Airbnb Inc (ABNB)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.10 | 0.09 | 0.08 | 0.08 | 0.10 | 0.09 | 0.09 | 0.10 | 0.12 | 0.12 | 0.10 | 0.12 | 0.14 |
| Debt-to-capital ratio | 0.19 | 0.19 | 0.20 | 0.20 | 0.20 | 0.18 | 0.28 | 0.27 | 0.26 | 0.26 | 0.27 | 0.30 | 0.29 |
| 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 |
| Financial leverage ratio | 2.49 | 2.61 | 3.29 | 3.11 | 2.53 | 2.35 | 4.19 | 3.78 | 2.88 | 2.90 | 3.63 | 3.60 | 2.87 |
The solvency ratios of Airbnb Inc, based on the provided data, show a positive trend over the reporting periods. The Debt-to-assets ratio, which reflects the proportion of the company's assets financed by debt, decreased from 0.14 in December 2021 to 0.08 in March 2024. This indicates a lower dependency on debt to finance the company's assets.
Similarly, the Debt-to-capital ratio, measuring the extent of the company's capital structure funded by debt, decreased from 0.29 in December 2021 to 0.19 in December 2024. This shows a decreasing reliance on debt in the company's overall capital structure.
The Debt-to-equity ratio, indicating the company's leverage from debt compared to equity, also exhibited a declining trend from 0.42 in December 2021 to 0.24 in December 2024. This implies a strengthening financial position in terms of equity relative to debt.
Lastly, the Financial leverage ratio, reflecting the company's financial risk due to debt, showed fluctuations but generally decreased from 2.87 in December 2021 to 2.49 in December 2024. This suggests improved financial stability and reduced risk associated with debt over the periods analyzed.
Overall, the solvency ratios of Airbnb Inc demonstrate a positive trajectory, indicating a sound financial position and a decreasing reliance on debt financing, which may enhance the company's ability to withstand economic challenges and pursue future growth opportunities.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 22.92 | 20.75 | 20.56 | 18.29 | 131.74 | 121.71 | 81.65 | 74.86 | 76.32 | 55.73 | 40.16 | 0.98 |
Airbnb Inc's interest coverage ratio has shown significant fluctuations over the period from December 31, 2021, to December 31, 2024. The interest coverage ratio, which measures the company's ability to meet its interest obligations, was below 1 at 0.98 as of December 31, 2021, indicating that Airbnb's operating income was just enough to cover its interest expenses.
However, the interest coverage ratio improved substantially in the subsequent periods, reaching a peak of 131.74 as of September 30, 2023. This indicates that the company's operating income became significantly more sufficient to cover its interest expenses during this period.
There was a decline in the interest coverage ratio to 18.29 as of December 31, 2023, which may raise concerns about Airbnb's ability to cover its interest payments adequately. The ratio slightly increased in the following periods, but the information for December 31, 2024, is not available.
Overall, the trend in Airbnb Inc's interest coverage ratio shows both improvements and fluctuations, highlighting the importance of monitoring the company's ability to meet its interest obligations over time.