Economic Value Added (EVA)
EVA is registered trademark of Stern Stewart.
Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.
Economic Profit
Airbnb Inc., economic profit calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 2,486 – 18.81% × 5,761 = 1,403
The financial trajectory from 2021 to 2025 indicates a transition from value destruction to consistent value creation. A significant pivot occurred between 2021 and 2022, where the entity shifted from a negative economic profit to a positive position, suggesting that operational returns began to exceed the cost of capital.
- Net Operating Profit After Taxes (NOPAT)
- A substantial upward trend is observed in NOPAT, which grew from US$ 465 million in 2021 to a peak of US$ 2,644 million in 2024. Although a moderate contraction occurred in 2023 and a slight decline was noted in 2025, the overall level of operating profitability remains significantly higher than the 2021 baseline, serving as the primary driver for the increase in economic profit.
- Invested Capital and Asset Efficiency
- Invested capital peaked in 2022 at US$ 6,894 million before trending downward to US$ 5,761 million by 2025. The observation that NOPAT generally increased while invested capital decreased after 2022 indicates an improvement in capital efficiency, as the organization generated higher absolute returns from a smaller capital base.
- Cost of Capital Stability
- The cost of capital remained remarkably stable throughout the period, fluctuating narrowly between 18.81% and 19.00%. This consistency implies that the changes in economic profit were not driven by shifts in the weighted average cost of capital or the risk profile of the entity, but rather by internal operational improvements and capital management.
- Economic Profit Evolution
- Economic profit moved from a deficit of US$ 647 million in 2021 to a high of US$ 1,482 million in 2024. This progression demonstrates a strong capacity to generate returns in excess of the required minimum return for investors. The volatility observed in 2023 mirrors the dip in NOPAT, while the recovery in 2024 and 2025 confirms a sustained period of economic value added.
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Net Operating Profit after Taxes (NOPAT)
Airbnb Inc., NOPAT calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in customer receivable reserve.
3 Addition of increase (decrease) in unearned fees.
4 Addition of increase (decrease) in equity equivalents to net income (loss).
5 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 272 × 7.40% = 20
6 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 23 × 21.00% = 5
7 Addition of after taxes interest expense to net income (loss).
8 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 705 × 21.00% = 148
9 Elimination of after taxes investment income.
Net operating profit after taxes (NOPAT) exhibited considerable fluctuation over the five-year period. While net income demonstrated a significant recovery from a loss in 2021, NOPAT presents a more nuanced picture of operational profitability. An initial increase in NOPAT was followed by a decline and subsequent recovery.
- Overall Trend
- NOPAT increased from US$465 million in 2021 to US$2,070 million in 2022, representing substantial growth. However, this was followed by a decrease to US$1,681 million in 2023. A recovery was then observed in 2024, with NOPAT reaching US$2,644 million, and this level was largely maintained in 2025 at US$2,486 million.
- Year-over-Year Changes
- The largest year-over-year increase in NOPAT occurred between 2021 and 2022, with a growth of US$1,605 million. The subsequent decline between 2022 and 2023 was US$389 million. The recovery from 2023 to 2024 amounted to US$963 million, and the change from 2024 to 2025 was a decrease of US$158 million.
- Relationship to Net Income
- While both NOPAT and net income increased significantly from 2021 to 2022, the divergence between the two metrics in 2023 suggests factors beyond core operational profitability influenced net income. The continued growth in NOPAT in 2024, despite a decrease in net income compared to 2023, further supports this observation. The relatively stable NOPAT in 2025, alongside a slight decrease in net income, indicates a consistent operational performance despite potential non-operating influences on the bottom line.
The fluctuations in NOPAT suggest that operational performance is subject to external factors or strategic decisions that impact profitability after considering operating taxes. Further investigation into the components of NOPAT and net income would be necessary to fully understand the drivers behind these trends.
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Cash Operating Taxes
Airbnb Inc., cash operating taxes calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
The provision for (benefit from) income taxes exhibits significant volatility over the observed period. Beginning at US$52 million in 2021, it increased to US$96 million in 2022 before experiencing a substantial negative swing to a benefit of negative US$2,690 million in 2023. This was followed by a return to positive provisions of US$683 million in 2024 and US$626 million in 2025.
Cash operating taxes demonstrate a generally increasing trend, albeit with fluctuations. The value decreased from US$139 million in 2021 to US$68 million in 2022, then declined further to US$56 million in 2023. A subsequent increase is observed in 2024, reaching US$88 million, and continuing into 2025 with a value of US$107 million.
- Provision for Income Taxes Trend
- The dramatic shift from a provision to a significant benefit in 2023 warrants further investigation. This could be attributable to changes in tax laws, utilization of net operating loss carryforwards, or other tax planning strategies. The return to positive provisions in 2024 and 2025 suggests a normalization of the tax position, but the levels remain below those seen in 2021 and 2022.
- Cash Operating Taxes vs. Provision for Income Taxes
- A divergence is apparent between the provision for income taxes and cash operating taxes. While the provision for income taxes experienced extreme fluctuations, cash operating taxes remained relatively stable, albeit with a general upward trend. This discrepancy suggests timing differences between reported income tax expense and actual cash payments, or the impact of deferred tax items. The cash operating taxes are consistently lower than the provision for income taxes, except in 2023 where the benefit from income taxes is significantly larger than the cash operating taxes.
- Overall Tax Impact
- The company’s effective tax rate, while not directly calculable from this information, is clearly impacted by the volatility in the provision for income taxes. The large benefit in 2023 likely resulted in a significantly reduced effective tax rate for that year. The increasing cash operating taxes in the later years may indicate a growing tax burden as profitability increases, despite the continued presence of deferred tax assets or other tax benefits.
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Invested Capital
Airbnb Inc., invested capital calculation (financing approach)
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of allowance for doubtful accounts receivable.
4 Addition of unearned fees.
5 Addition of equity equivalents to stockholders’ equity.
6 Removal of accumulated other comprehensive income.
7 Subtraction of short-term investments.
The composition of the company’s capital structure exhibits notable shifts over the five-year period. Total reported debt and leases demonstrate a consistent, albeit modest, decline annually, decreasing from US$2,418 million in 2021 to US$2,271 million in 2025. Conversely, stockholders’ equity experienced substantial growth between 2021 and 2023, increasing from US$4,776 million to US$8,165 million, before stabilizing and experiencing a slight decrease to US$8,199 million in 2025. Invested capital initially increased from 2021 to 2022, then decreased in 2023, followed by a slight increase in 2024, and a further decrease in 2025.
- Total Reported Debt & Leases
- A consistent downward trend is observed in total reported debt and leases throughout the period. This suggests a deliberate strategy to reduce reliance on debt financing, potentially improving financial flexibility or reducing interest expenses. The rate of decline is relatively stable, indicating a consistent approach to debt management.
- Stockholders’ Equity
- Stockholders’ equity demonstrates significant growth from 2021 to 2023, indicating strong earnings retention or successful equity issuance. The growth rate slows considerably in 2024 and 2025, with a slight decrease in the latter year. This stabilization may reflect changes in profitability, dividend payouts, or share repurchase activity.
- Invested Capital
- Invested capital initially rose in 2022, likely driven by increases in both debt and equity. However, a decrease is observed in 2023, despite the continued growth in stockholders’ equity. This suggests a potential reduction in operational assets or a change in working capital management. A slight recovery in 2024 is followed by a further decrease in 2025, indicating continued volatility in capital deployment. The fluctuations in invested capital warrant further investigation to understand the underlying drivers.
The interplay between these components suggests a shift in the company’s capital structure towards greater reliance on equity financing. While debt levels are decreasing, the growth in equity has not consistently translated into increased invested capital, indicating potential changes in asset utilization or investment strategies.
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Cost of Capital
Airbnb Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 70,586) | 70,586) | ÷ | 72,858) | = | 0.97 | 0.97 | × | 19.38% | = | 18.78% | ||
| Debt3 | 2,000) | 2,000) | ÷ | 72,858) | = | 0.03 | 0.03 | × | 0.20% × (1 – 21.00%) | = | 0.00% | ||
| Operating lease liability4 | 272) | 272) | ÷ | 72,858) | = | 0.00 | 0.00 | × | 7.40% × (1 – 21.00%) | = | 0.02% | ||
| Total: | 72,858) | 1.00 | 18.81% | ||||||||||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 88,931) | 88,931) | ÷ | 91,130) | = | 0.98 | 0.98 | × | 19.38% | = | 18.92% | ||
| Debt3 | 1,900) | 1,900) | ÷ | 91,130) | = | 0.02 | 0.02 | × | 0.20% × (1 – 21.00%) | = | 0.00% | ||
| Operating lease liability4 | 299) | 299) | ÷ | 91,130) | = | 0.00 | 0.00 | × | 7.30% × (1 – 21.00%) | = | 0.02% | ||
| Total: | 91,130) | 1.00 | 18.94% | ||||||||||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 98,684) | 98,684) | ÷ | 100,797) | = | 0.98 | 0.98 | × | 19.38% | = | 18.98% | ||
| Debt3 | 1,800) | 1,800) | ÷ | 100,797) | = | 0.02 | 0.02 | × | 0.20% × (1 – 21.00%) | = | 0.00% | ||
| Operating lease liability4 | 313) | 313) | ÷ | 100,797) | = | 0.00 | 0.00 | × | 7.20% × (1 – 21.00%) | = | 0.02% | ||
| Total: | 100,797) | 1.00 | 19.00% | ||||||||||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 84,294) | 84,294) | ÷ | 86,348) | = | 0.98 | 0.98 | × | 19.38% | = | 18.92% | ||
| Debt3 | 1,700) | 1,700) | ÷ | 86,348) | = | 0.02 | 0.02 | × | 0.20% × (1 – 21.00%) | = | 0.00% | ||
| Operating lease liability4 | 354) | 354) | ÷ | 86,348) | = | 0.00 | 0.00 | × | 7.00% × (1 – 21.00%) | = | 0.02% | ||
| Total: | 86,348) | 1.00 | 18.95% | ||||||||||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 99,703) | 99,703) | ÷ | 102,103) | = | 0.98 | 0.98 | × | 19.38% | = | 18.93% | ||
| Debt3 | 1,964) | 1,964) | ÷ | 102,103) | = | 0.02 | 0.02 | × | 0.20% × (1 – 21.00%) | = | 0.00% | ||
| Operating lease liability4 | 436) | 436) | ÷ | 102,103) | = | 0.00 | 0.00 | × | 6.80% × (1 – 21.00%) | = | 0.02% | ||
| Total: | 102,103) | 1.00 | 18.95% | ||||||||||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Airbnb Inc., economic spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | 1,403) | 1,482) | 558) | 763) | (647) | |
| Invested capital2 | 5,761) | 6,133) | 5,911) | 6,894) | 5,866) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | 24.35% | 24.17% | 9.44% | 11.07% | -11.03% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Booking Holdings Inc. | 24.31% | 29.18% | 14.72% | 3.87% | -13.58% | |
| Chipotle Mexican Grill Inc. | 9.13% | 8.59% | 7.01% | 2.81% | -1.68% | |
| DoorDash, Inc. | -18.69% | -26.72% | -39.16% | -52.94% | -39.45% | |
| McDonald’s Corp. | 8.91% | 8.42% | 8.50% | 5.70% | 8.13% | |
| Starbucks Corp. | -4.63% | 3.52% | 5.22% | 2.82% | 4.07% | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Economic profit. See details »
2 Invested capital. See details »
3 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 1,403 ÷ 5,761 = 24.35%
4 Click competitor name to see calculations.
The financial performance from 2021 to 2025 demonstrates a significant transition from economic value destruction to substantial value creation. After an initial period of negative economic profit, there is a clear upward trajectory in the company's ability to generate returns exceeding its cost of capital, culminating in a stabilized high-performance state by 2024 and 2025.
- Economic Profit Trends
- A notable reversal occurred between 2021 and 2022, where economic profit shifted from a deficit of 647 million USD to a surplus of 763 million USD. Although a slight contraction to 558 million USD was observed in 2023, a sharp increase followed in 2024, reaching a peak of 1,482 million USD. This figure remained strong in 2025 at 1,403 million USD, indicating a sustainable capacity to generate wealth above the required return.
- Invested Capital Dynamics
- Invested capital exhibited moderate volatility, peaking at 6,894 million USD in 2022 before trending downward. By 2025, invested capital reached its lowest point in the analyzed period at 5,761 million USD. The combination of decreasing invested capital and increasing economic profit suggests an improvement in capital efficiency, as the organization is generating higher absolute returns with a smaller capital base.
- Economic Spread Ratio Analysis
- The economic spread ratio highlights a dramatic improvement in operational efficiency and value creation. The ratio moved from -11.03% in 2021 to a positive 11.07% in 2022. Following a marginal dip to 9.44% in 2023, the ratio more than doubled to 24.17% in 2024 and remained nearly constant at 24.35% in 2025. This expansion indicates a widening gap between the return on invested capital and the weighted average cost of capital, signaling strong competitive advantages and optimized financial leverage.
Overall, the data reflects a company that has successfully optimized its capital structure and operational returns. The convergence of a stabilizing invested capital base and a significantly elevated economic spread ratio suggests a mature phase of value generation.
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Economic Profit Margin
Airbnb Inc., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | 1,403) | 1,482) | 558) | 763) | (647) | |
| Revenue | 12,241) | 11,102) | 9,917) | 8,399) | 5,992) | |
| Add: Increase (decrease) in unearned fees | 127) | 189) | 245) | 278) | 496) | |
| Adjusted revenue | 12,368) | 11,291) | 10,162) | 8,677) | 6,488) | |
| Performance Ratio | ||||||
| Economic profit margin2 | 11.34% | 13.13% | 5.49% | 8.80% | -9.98% | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Booking Holdings Inc. | 11.66% | 15.95% | 7.87% | 3.09% | -18.59% | |
| Chipotle Mexican Grill Inc. | 5.58% | 5.17% | 4.25% | 1.75% | -1.22% | |
| DoorDash, Inc. | -15.32% | -15.60% | -23.75% | -42.78% | -25.65% | |
| McDonald’s Corp. | 17.76% | 16.14% | 16.69% | 11.17% | 16.70% | |
| Starbucks Corp. | -3.00% | 2.29% | 3.23% | 1.80% | 3.32% | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Economic profit. See details »
2 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenue
= 100 × 1,403 ÷ 12,368 = 11.34%
3 Click competitor name to see calculations.
The company's economic value creation demonstrates a significant turnaround and growth trajectory between 2021 and 2025. The transition from negative to positive economic profit indicates a shift from destroying shareholder value to generating returns that exceed the company's cost of capital.
- Adjusted Revenue Growth
- A consistent and uninterrupted upward trend is observed in adjusted revenue, which expanded from 6,488 million USD in 2021 to 12,368 million USD by 2025. This steady growth indicates a continuous expansion of the company's operational scale.
- Economic Profit Volatility
- Economic profit shifted from a deficit of 647 million USD in 2021 to a surplus of 763 million USD in 2022. Although a decline to 558 million USD occurred in 2023, a substantial recovery followed in 2024, with profit peaking at 1,482 million USD before slightly moderating to 1,403 million USD in 2025.
- Economic Profit Margin Analysis
- The economic profit margin mirrors the fluctuations in absolute economic profit. The margin rose from -9.98% in 2021 to 8.80% in 2022, dipped to 5.49% in 2023, and reached a high of 13.13% in 2024. The final recorded margin of 11.34% in 2025 suggests that while the peak efficiency of 2024 was not maintained, the company has established a stable capacity for positive value generation relative to its revenue.
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