Return on Equity (ROE)
since 2020
Calculation
Airbnb Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 31.48% | = | 100 | × | 2,648) | ÷ | 8,412) |
| Dec 31, 2023 | 58.69% | = | 100 | × | 4,792) | ÷ | 8,165) |
| Dec 31, 2022 | 34.05% | = | 100 | × | 1,893) | ÷ | 5,560) |
| Dec 31, 2021 | -7.37% | = | 100 | × | (352) | ÷ | 4,776) |
| Dec 31, 2020 | -158.00% | = | 100 | × | (4,585) | ÷ | 2,902) |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 US$ in millions
The return on equity (ROE) exhibited significant fluctuations between 2020 and 2024. Initially negative, the ROE demonstrated a substantial improvement over the analyzed period, followed by a recent moderation.
- Net Income and ROE Relationship
- A strong correlation exists between net income and ROE. The negative net income reported in 2020 and 2021 resulted in negative ROE values. As net income turned positive in 2022 and increased further in 2023, the ROE correspondingly rose significantly. The decrease in net income in 2024 led to a reduction in ROE from its peak in the prior year.
- ROE Trend Analysis
- In 2020, the ROE was significantly negative, registering at -158.00%. This reflects substantial net losses relative to stockholders’ equity. A marked improvement occurred in 2021, with the ROE increasing to -7.37%, indicating a reduction in the magnitude of the net loss. The year 2022 saw a positive ROE of 34.05%, signifying profitability. Further gains were observed in 2023, with the ROE reaching 58.69%, the highest value within the observed period. However, the ROE decreased to 31.48% in 2024, suggesting a decline in profitability relative to equity.
- Stockholders’ Equity Impact
- Stockholders’ equity consistently increased throughout the period, from US$2,902 million in 2020 to US$8,412 million in 2024. This growth in equity, while contributing to the denominator of the ROE calculation, was overshadowed by the dramatic shifts in net income, particularly in the earlier years. The increasing equity base likely dampened the full extent of ROE increases observed in 2022 and 2023.
Overall, the ROE trajectory reflects a recovery from initial losses to substantial profitability, followed by a recent moderation. The fluctuations in ROE are primarily driven by changes in net income, while stockholders’ equity demonstrates a consistent upward trend.
Comparison to Competitors
Airbnb Inc., ROE, long-term trends, comparison to competitors
| Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | DoorDash, Inc. | McDonald’s Corp. | Starbucks Corp. | |
|---|---|---|---|---|---|---|
| Dec 31, 2024 | 31.48% | — | 41.97% | 1.58% | — | — |
| Dec 31, 2023 | 58.69% | — | 40.13% | -8.20% | — | — |
| Dec 31, 2022 | 34.05% | 109.92% | 37.97% | -20.21% | — | — |
| Dec 31, 2021 | -7.37% | 18.86% | 28.42% | -10.03% | — | — |
| Dec 31, 2020 | -158.00% | 1.21% | 17.61% | -9.81% | — | — |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Comparison to Sector (Consumer Services)
Airbnb Inc., ROE, long-term trends, comparison to sector (consumer services)
| Airbnb Inc. | Consumer Services | |
|---|---|---|
| Dec 31, 2024 | 31.48% | 481.49% |
| Dec 31, 2023 | 58.69% | 863.51% |
| Dec 31, 2022 | 34.05% | 506.32% |
| Dec 31, 2021 | -7.37% | 159.36% |
| Dec 31, 2020 | -158.00% | — |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Comparison to Industry (Consumer Discretionary)
Airbnb Inc., ROE, long-term trends, comparison to industry (consumer discretionary)
| Airbnb Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2024 | 31.48% | 27.93% |
| Dec 31, 2023 | 58.69% | 29.93% |
| Dec 31, 2022 | 34.05% | 20.78% |
| Dec 31, 2021 | -7.37% | 33.71% |
| Dec 31, 2020 | -158.00% | 24.49% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).