Airbnb Inc (ABNB)
Solvency ratios
| 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 | 0.09 | 0.10 | 0.12 | 0.12 | 0.10 | 0.12 | 0.14 | 0.15 | 0.13 | 0.16 |
| Debt-to-capital ratio | 0.20 | 0.18 | 0.28 | 0.27 | 0.26 | 0.26 | 0.27 | 0.30 | 0.29 | 0.31 | 0.37 | 0.39 |
| Debt-to-equity ratio | 0.24 | 0.22 | 0.40 | 0.38 | 0.36 | 0.36 | 0.38 | 0.42 | 0.42 | 0.45 | 0.58 | 0.63 |
| Financial leverage ratio | 2.53 | 2.35 | 4.19 | 3.78 | 2.88 | 2.90 | 3.63 | 3.60 | 2.87 | 3.05 | 4.56 | 3.91 |
The solvency ratios of Airbnb Inc over the past eight quarters show various trends in the company's financial leverage and debt management.
1. Debt-to-assets ratio remained relatively stable at around 0.09-0.12 over the period, indicating the company's ability to cover its assets with a moderate level of debt.
2. Debt-to-capital ratio fluctuated between 0.18 and 0.30, suggesting some variability in the proportion of debt and capital used to finance the company's operations.
3. Debt-to-equity ratio ranged from 0.22 to 0.42, reflecting changes in the proportion of debt and equity in the company's capital structure. The ratio reached its highest point in Q1 2022, indicating a higher level of debt relative to equity at that time.
4. Financial leverage ratio also varied significantly, with the ratio jumping from 2.35 in Q3 2023 to 4.19 in Q2 2023, and then decreasing in subsequent quarters. This indicates fluctuations in the company's utilization of debt to finance its operations and investments.
Overall, while there have been some fluctuations in Airbnb's solvency ratios over the past two years, the company has maintained manageable levels of debt relative to its assets, capital, and equity. However, the significant variability in the financial leverage ratio suggests that Airbnb has been actively managing its debt levels to optimize its capital structure and financial health.
Coverage ratios
| 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 | 18.29 | 132.29 | 117.25 | 81.30 | 75.31 | 76.57 | 57.61 | 40.60 | 0.98 |
Based on the available data, the interest coverage ratio for Airbnb Inc in Q1 2022 was 124.16. Unfortunately, there is no available data for the interest coverage ratio for the subsequent quarters of 2022 and the entirety of 2023.
The interest coverage ratio of 124.16 in Q1 2022 suggests that Airbnb Inc generated ample operating income to cover its interest expenses by approximately 124 times during that period. This indicates a strong ability to meet its interest obligations from its operating profits.
However, without additional data points for further analysis, it is difficult to assess the trend or current status of Airbnb Inc's ability to cover its interest payments. It is crucial to monitor future financial statements to gain a better understanding of the company's ongoing financial health and management of its debt obligations.