Stock Analysis on Net

Airbnb Inc. (NASDAQ:ABNB)

$24.99

Economic Value Added (EVA)

Microsoft Excel

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.

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Economic Profit

Airbnb Inc., economic profit calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net operating profit after taxes (NOPAT)1
Cost of capital2
Invested capital3
 
Economic profit4

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 NOPAT. See details »

2 Cost of capital. See details »

3 Invested capital. See details »

4 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= × =


Net Operating Profit After Taxes (NOPAT)
The net operating profit after taxes demonstrates a significant improvement over the analyzed period. Initially, there was a substantial loss of $4,675 million in 2020, followed by a transition to positive profitability with $465 million in 2021. Subsequent years witnessed further growth, reaching $2,070 million in 2022, followed by a slight decline to $1,681 million in 2023, and a recovery to $2,644 million in 2024. This pattern indicates a strong recovery and stabilization of operational profitability after an initial loss.
Cost of Capital
The cost of capital remained relatively stable throughout the period, fluctuating narrowly between 15.67% and 15.88%. This suggests a consistent risk profile and capital structure cost, implying that changes in profitability and economic profit were driven primarily by operational performance rather than shifts in capital costs.
Invested Capital
The invested capital increased from $4,764 million in 2020 to a peak of $6,849 million in 2022, reflecting growth in the asset base or capital employed. However, this was followed by a decline to $5,829 million in 2023 and a slight rebound to $6,117 million in 2024. These fluctuations indicate periods of both expansion and contraction or efficiency adjustments in the use of capital resources.
Economic Profit
The economic profit metric, which adjusts for the cost of capital, shows a trajectory from a significant negative value of -$5,432 million in 2020 to a reduced loss of -$451 million in 2021. Positive economic profit was achieved from 2022 onward, with values of $996 million in 2022, a moderate decrease to $764 million in 2023, and a substantial increase to $1,685 million in 2024. This trend highlights effective value creation after overcoming initial capital charge deficits, indicating improved operational efficiency and profitability above the cost of capital.

Net Operating Profit after Taxes (NOPAT)

Airbnb Inc., NOPAT calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income (loss)
Deferred income tax expense (benefit)1
Increase (decrease) in customer receivable reserve2
Increase (decrease) in unearned fees3
Increase (decrease) in equity equivalents4
Interest expense
Interest expense, operating lease liability5
Adjusted interest expense
Tax benefit of interest expense6
Adjusted interest expense, after taxes7
(Gain) loss on marketable securities
Interest income
Investment income, before taxes
Tax expense (benefit) of investment income8
Investment income, after taxes9
Net operating profit after taxes (NOPAT)

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 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 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= × =

6 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= × 21.00% =

7 Addition of after taxes interest expense to net income (loss).

8 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= × 21.00% =

9 Elimination of after taxes investment income.


Net Income (Loss)
The net income shows a significant improvement over the five-year period. In 2020, there was a substantial loss of $4,585 million, which decreased markedly to a loss of $352 million in 2021. By 2022, the company achieved positive net income of $1,893 million. This positive trend continued with a peak net income of $4,792 million in 2023, followed by a decline to $2,648 million in 2024. Overall, the data reflect a recovery from heavy losses to profitability, although with some reduction in earnings in the final year.
Net Operating Profit After Taxes (NOPAT)
NOPAT also demonstrates a strong turnaround, starting with a negative figure of $4,675 million in 2020, indicating operating challenges. In 2021, the company reversed to a positive NOPAT of $465 million, which increased significantly to $2,070 million in 2022. There was a slight decrease in 2023 to $1,681 million, followed by an increase to $2,644 million in 2024. This suggests the company improved its core operating profitability substantially, though with some variability in the middle years. The upward trend in NOPAT aligns broadly with improvements in net income, affirming enhanced operational efficiency and tax management over the period.

Cash Operating Taxes

Airbnb Inc., cash operating taxes calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Provision for (benefit from) income taxes
Less: Deferred income tax expense (benefit)
Add: Tax savings from interest expense
Less: Tax imposed on investment income
Cash operating taxes

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).


Provision for (benefit from) income taxes
The provision for income taxes exhibits significant volatility over the analyzed period. Initially, there was a tax benefit of US$ 97 million at the end of 2020. This shifted to a positive provision of US$ 52 million in 2021, followed by an increase to US$ 96 million in 2022. A remarkable change occurred in 2023, with a substantial tax benefit of US$ 2,690 million, indicating a large reversal or credit. However, this was followed by a reversion to a positive income tax provision of US$ 683 million in 2024. The fluctuation suggests irregularities or extraordinary items impacting the tax expenses during these years.
Cash operating taxes
Cash operating taxes show an overall upward trend though with some irregularities in magnitude. Starting from a negative figure of US$ 36 million in 2020, which may reflect tax refunds or credits, the amount increased sharply to US$ 139 million in 2021. Thereafter, it declined to US$ 68 million in 2022 and decreased further to US$ 56 million in 2023. In 2024, the figure reversed the downward trend and increased to US$ 88 million. The pattern in cash taxes paid is less volatile than the provision for taxes but demonstrates variability that may be influenced by the company's operational profitability and tax planning strategies.

Invested Capital

Airbnb Inc., invested capital calculation (financing approach)

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Current portion of long-term debt
Long-term debt, net of current portion
Operating lease liability1
Total reported debt & leases
Stockholders’ equity
Net deferred tax (assets) liabilities2
Customer receivable reserve3
Unearned fees4
Equity equivalents5
Accumulated other comprehensive (income) loss, net of tax6
Adjusted stockholders’ equity
Construction in progress7
Short-term investments8
Invested capital

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 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 construction in progress.

8 Subtraction of short-term investments.


The data reflects the financial position over five consecutive years. Several key trends emerge from the analysis of debt, equity, and invested capital figures.

Total Reported Debt & Leases
Debt and lease obligations remain relatively stable, fluctuating slightly but generally around the range of US$2.3 billion to US$2.4 billion. The peak is observed in 2021 at US$2.418 billion, followed by a gradual decline through the subsequent years, ending at US$2.294 billion in 2024. This suggests a consistent management of debt levels with no significant increase in financial leverage.
Stockholders’ Equity
Equity shows a strong upward trend over the five years, moving from US$2.902 billion in 2020 to US$8.412 billion in 2024. The growth is particularly notable between 2022 and 2023, where equity increased substantially from US$5.560 billion to US$8.165 billion, indicating capital infusion, retained earnings accumulation, or valuation gains strengthening the company's net worth.
Invested Capital
Invested capital demonstrates variability with growth from US$4.764 billion in 2020 to US$6.849 billion in 2022, then a decline to US$5.829 billion in 2023, followed by a slight recovery to US$6.117 billion in 2024. This pattern suggests fluctuations possibly due to changes in working capital, asset acquisitions, or disposals impacting the capital invested in business operations.

Overall, the financial structure shows an increase in shareholder equity reinforcing the balance sheet strength, while debt levels remain managed and stable. Invested capital experiences some volatility but maintains a generally upward trajectory over the entire period, reflecting ongoing investment activities.


Cost of Capital

Airbnb Inc., cost of capital calculations

Capital (fair value)1 Weights Cost of capital
Equity2 ÷ = × =
Debt3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

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 ÷ = × =
Debt3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

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 ÷ = × =
Debt3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

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 ÷ = × =
Debt3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

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 »

Capital (fair value)1 Weights Cost of capital
Equity2 ÷ = × =
Debt3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

Based on: 10-K (reporting date: 2020-12-31).

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Economic profit1
Invested capital2
Performance Ratio
Economic spread ratio3
Benchmarks
Economic Spread Ratio, Competitors4
Booking Holdings Inc.
Chipotle Mexican Grill Inc.
DoorDash, Inc.
McDonald’s Corp.
Starbucks Corp.

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 Economic profit. See details »

2 Invested capital. See details »

3 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × ÷ =

4 Click competitor name to see calculations.


Economic Profit
The economic profit shows a significant improvement over the period analyzed. Starting from a substantial negative value of -5432 million USD in 2020, it improved dramatically to -451 million USD in 2021. Subsequently, the economic profit turned positive in 2022, reaching 996 million USD. Although there was a decrease to 764 million USD in 2023, the figure rebounded strongly to 1685 million USD in 2024. This overall trend suggests a transition from considerable losses to consistent profitability.
Invested Capital
The invested capital displays a general upward trajectory from 4764 million USD in 2020 to 6849 million USD in 2022. However, this was followed by a decline to 5829 million USD in 2023, before rising again to 6117 million USD in 2024. The fluctuations in invested capital indicate some rebalancing or adjustment in asset allocation or capital investments during these years, with a net increase over the five-year period.
Economic Spread Ratio
The economic spread ratio exhibits a marked positive trend. Initially, the ratio was deeply negative at -114.03% in 2020, improving sharply to -7.72% in 2021. It transitioned to a positive ratio of 14.54% in 2022, slightly decreasing to 13.11% in 2023, before surging to 27.55% in 2024. This indicates an increasing return exceeding the cost of capital, reflecting enhanced efficiency and value creation over the analyzed period.

Economic Profit Margin

Airbnb Inc., economic profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Economic profit1
 
Revenue
Add: Increase (decrease) in unearned fees
Adjusted revenue
Performance Ratio
Economic profit margin2
Benchmarks
Economic Profit Margin, Competitors3
Booking Holdings Inc.
Chipotle Mexican Grill Inc.
DoorDash, Inc.
McDonald’s Corp.
Starbucks Corp.

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 Economic profit. See details »

2 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenue
= 100 × ÷ =

3 Click competitor name to see calculations.


The financial data reveals several noteworthy trends over the five-year period from 2020 to 2024.

Economic Profit
The economic profit showed a significant shift over the period. In 2020, the company experienced a substantial economic loss of $5,432 million. This loss dramatically reduced in 2021 to $451 million, indicating a substantial improvement. By 2022, economic profit turned positive at $996 million, reflecting a recovery and a move towards profitability. Although there was a slight decline in 2023 to $764 million, the profit rebounded strongly in 2024 to reach $1,685 million. This overall upward trend suggests effective management and operational improvement resulting in sustained profitability.
Adjusted Revenue
Adjusted revenue showed consistent and robust growth throughout the period. Starting from $3,111 million in 2020, revenue more than doubled by 2021 to $6,488 million. The upward momentum continued as revenues increased to $8,677 million in 2022, $10,162 million in 2023, and $11,291 million in 2024. This steady increase points to growing sales or service volumes and possibly favorable market conditions or expanded business operations.
Economic Profit Margin
The economic profit margin mirrored the trend in economic profit. It was deeply negative at -174.58% in 2020, indicating very high losses relative to revenue. The margin improved sharply by 2021 to -6.95%, nearing breakeven. In 2022, the margin became positive at 11.47%, confirming the shift to profitability. Although there was a slight decline to 7.52% in 2023, the margin surged again to 14.93% in 2024. These fluctuations, combined with the overall positive trajectory, suggest the company not only increased its revenue base but also enhanced cost efficiency and value creation.

Overall, the data reflects a positive transformation from a significant economic loss to growing profitability supported by strong revenue growth. The profitability ratios indicate improved operational efficiency and sustainable economic value generation over the analyzed period.