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.
Paying user area
Try for free
Airbnb Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Airbnb Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Economic Profit
Airbnb Inc., economic profit calculation
US$ in millions
| 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
= – × =
The financial data reveals significant shifts in the company's profitability and capital efficiency over the analyzed periods.
- Net Operating Profit After Taxes (NOPAT)
-
NOPAT experienced a marked improvement starting from a large negative value of -4,675 million USD in 2020 to positive figures in subsequent years. In 2021, NOPAT turned positive at 465 million USD, followed by a substantial increase to 2,070 million USD in 2022. Although there was a decrease in 2023 to 1,681 million USD, the value rebounded to 2,644 million USD in 2024. This trend indicates a successful recovery and strengthening of core profitability after a notable loss in 2020.
- Cost of Capital
-
The cost of capital remained relatively stable throughout the five-year period, fluctuating slightly between approximately 15.93% and 16.14%. The consistency of this rate suggests stable market conditions or risk assessments associated with the business during these years, providing a steady benchmark for evaluating economic profit.
- Invested Capital
-
The invested capital demonstrated growth from 4,764 million USD in 2020 to a peak of 6,849 million USD in 2022, followed by a decline to 5,829 million USD in 2023 and a modest increase to 6,117 million USD in 2024. This pattern indicates an initial expansion in investment, possibly supporting growth initiatives, followed by a period of capitalization reduction or optimization, and a slight reinvestment effort thereafter.
- Economic Profit
-
Economic profit, which reflects the value created beyond the cost of capital, showed a strong turnaround. The metric was deeply negative at -5,444 million USD in 2020 and improved to -466 million USD in 2021. By 2022, economic profit turned positive at 978 million USD, despite a decrease to 749 million USD in 2023, it increased again to 1,669 million USD in 2024. This pattern indicates that the company moved from a position of destroying economic value to consistently generating significant economic profit, highlighting enhanced operational efficiency and value creation over the period.
In summary, the financial data points to a company that reversed its substantial losses in 2020, improved profitability steadily, maintained a stable cost of capital, managed invested capital with some fluctuation, and transitioned to generating positive economic profit. These trends suggest effective operational improvements and capital utilization resulting in growing economic value creation in recent years.
Net Operating Profit after Taxes (NOPAT)
Airbnb Inc., NOPAT calculation
US$ in millions
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
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
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
| 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 demonstrates a significant upward trend over the analyzed period. Starting from a negative $-5444$ million in 2020, it improved considerably to $-466$ million in 2021, transitioning into positive territory of $978$ million in 2022. Although there was a slight decline to $749$ million in 2023, the figure rebounded strongly to reach $1669$ million in 2024. This progression signifies enhanced value creation and profitability over time.
- Invested Capital
- Invested capital increased steadily from $4764$ million in 2020 to a peak of $6849$ million in 2022. However, it then declined to $5829$ million in 2023 before experiencing a modest rise to $6117$ million in 2024. This pattern suggests initial expansion in asset investment followed by some consolidation or divestment, with a slight recovery in the final year.
- Economic Spread Ratio
- The economic spread ratio, reflecting the return on invested capital relative to cost, showed marked improvement. It started at a deeply negative level of -114.29% in 2020, indicative of substantial value destruction. This ratio improved to -7.98% in 2021 and moved into positive values of 14.28% and 12.85% in 2022 and 2023 respectively, indicating a shift toward value creation. The spread further increased to 27.29% in 2024, highlighting enhanced efficiency in capital utilization and stronger financial performance.
- Summary of Trends
- The data reveals a clear trajectory of financial recovery and strengthening performance over the five-year span. Economic profit shifted from significant losses to increasingly substantial gains. Invested capital experienced growth with minor fluctuations, suggesting strategic investment decisions. The economic spread ratio’s transition from negative to strongly positive underlines improved profitability and capital deployment efficiency. Collectively, the figures indicate improving operational effectiveness and value generation capabilities in recent years.
Economic Profit Margin
Airbnb Inc., economic profit margin calculation, comparison to benchmarks
| 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.
- Economic Profit
- The economic profit shows a significant improvement over the analyzed period. Starting from a considerable loss of 5,444 million US dollars in 2020, it sharply reduced to a loss of 466 million in 2021. Subsequently, the company transitioned to positive economic profit in 2022 with 978 million US dollars, although this figure experienced a slight decline in 2023 to 749 million. However, growth resumed in 2024, reaching 1,669 million US dollars, indicating an overall positive trajectory and enhanced value creation.
- Adjusted Revenue
- The adjusted revenue demonstrated a continuous upward trend year over year. It more than doubled from 3,111 million US dollars in 2020 to 6,488 million in 2021. This upward momentum continued with revenues climbing to 8,677 million in 2022, 10,162 million in 2023, and further to 11,291 million in 2024. The steady increase suggests consistent sales growth and expanding business operations.
- Economic Profit Margin
- The economic profit margin experienced substantial improvement alongside the economic profit value. It was deeply negative at -174.98% in 2020, showing high inefficiency or losses. By 2021, this margin had greatly improved to -7.18%, indicating near break-even conditions. In 2022, the margin turned positive at 11.27%, showing profitability relative to adjusted revenue. Though it slightly declined to 7.37% in 2023, it rebounded strongly to 14.78% in 2024. This pattern reflects increased operational efficiency and better utilization of revenues to generate profits.
- Overall Trends and Insights
- The financial data portrays a company that has transitioned from significant losses in 2020 to sustained profitability by 2022 and beyond. Both adjusted revenue and economic profit have shown consistent growth, supported by improving profit margins. Although there was a marginal dip in economic profit and profit margin in 2023, the recovery in 2024 demonstrates resilience and continued progress in financial performance. These trends suggest effective management strategies that have enhanced value creation and operational efficiency over the five-year period.