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.
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Economic Profit
Airbnb Inc., economic profit calculation
US$ in millions
| 12 months ended: | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|---|
| Net operating profit after taxes (NOPAT)1 | ||||||
| Cost of capital2 | ||||||
| Invested capital3 | ||||||
| Economic profit4 | ||||||
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
= – × =
The analysis of economic value added indicates a significant transition from value destruction to consistent value creation over the observed five-year period. A critical inflection point occurred between 2021 and 2022, as the organization shifted from a negative economic profit to a positive trajectory, signaling that operating returns began to exceed the cost of capital.
- Net Operating Profit After Taxes (NOPAT)
- NOPAT demonstrated substantial growth, increasing from 465 million USD in 2021 to a peak of 2,644 million USD in 2024. Although fluctuations were observed with a dip in 2023 and a slight decrease in 2025, the overall trend reflects a marked improvement in operational profitability.
- Cost of Capital
- The cost of capital remained remarkably stable, hovering consistently around 19% throughout the period. This stability indicates that the fluctuations in economic profit were driven by operational performance and capital management rather than changes in the required rate of return or financing costs.
- Invested Capital
- Invested capital peaked in 2022 at 6,894 million USD before trending downward to 5,761 million USD by 2025. This downward trend in invested capital, occurring alongside generally increasing NOPAT, suggests an improvement in capital efficiency and a reduction in the assets required to generate operating profit.
- Economic Profit Performance
- Economic profit moved from a deficit of 655 million USD in 2021 to a surplus of 1,395 million USD in 2025. The most significant expansion occurred in 2024, reaching 1,474 million USD. This trend confirms that the organization is generating returns well above its cost of capital, thereby creating significant economic value for shareholders.
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
= × =
6 2025 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 2025 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 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$158 million.
- Relationship to Net Income
- While both NOPAT and net income increased significantly from 2021 to 2022, the divergence between the two metrics in 2023 suggests factors beyond core operational profitability influenced net income. The continued growth in NOPAT in 2024, despite a decrease in net income compared to 2023, further supports this observation. The relatively stable NOPAT in 2025, alongside a slight decrease in net income, indicates a consistent operational performance despite potential non-operating influences on the bottom line.
The fluctuations in NOPAT suggest that operational performance is subject to external factors or strategic decisions that impact profitability after considering operating taxes. Further investigation into the components of NOPAT and net income would be necessary to fully understand the drivers behind these trends.
Cash Operating Taxes
Airbnb Inc., cash operating taxes calculation
US$ 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$107 million.
- Provision for Income Taxes Trend
- The dramatic shift from a provision to a significant benefit in 2023 warrants further investigation. This could be attributable to changes in tax laws, utilization of net operating loss carryforwards, or other tax planning strategies. The return to positive provisions in 2024 and 2025 suggests a normalization of the tax position, but the levels remain below those seen in 2021 and 2022.
- Cash Operating Taxes vs. Provision for Income Taxes
- A divergence is apparent between the provision for income taxes and cash operating taxes. While the provision for income taxes experienced extreme fluctuations, cash operating taxes remained relatively stable, albeit with a general upward trend. This discrepancy suggests timing differences between reported income tax expense and actual cash payments, or the impact of deferred tax items. The cash operating taxes are consistently lower than the provision for income taxes, except in 2023 where the benefit from income taxes is significantly larger than the cash operating taxes.
- Overall Tax Impact
- The company’s effective tax rate, while not directly calculable from this information, is clearly impacted by the volatility in the provision for income taxes. The large benefit in 2023 likely resulted in a significantly reduced effective tax rate for that year. The increasing cash operating taxes in the later years may indicate a growing tax burden as profitability increases, despite the continued presence of deferred tax assets or other tax benefits.
Invested Capital
Airbnb Inc., invested capital calculation (financing approach)
US$ 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.
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: 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 | ÷ | = | × | = | |||||||||
| 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 »
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 | ||||||
| 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: 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 × ÷ =
4 Click competitor name to see calculations.
A significant shift in value creation is evident over the analyzed period, characterized by a transition from negative economic profit to sustained positive returns. The trajectory indicates a substantial improvement in the ability to generate returns that exceed the cost of capital, moving from value destruction to significant value addition.
- Economic Profit Trends
- The company transitioned from an economic loss of 655 million US$ in 2021 to a positive value of 754 million US$ in 2022. Despite a moderate decline to 550 million US$ in 2023, a sharp increase occurred in 2024, reaching 1,474 million US$, before stabilizing at 1,395 million US$ in 2025. This pattern reflects a strong recovery and a subsequent expansion of absolute economic gains.
- Invested Capital Dynamics
- Invested capital exhibited relative stability, fluctuating within a range of 5,761 million US$ to 6,894 million US$. A peak was observed in 2022, followed by a general downward trend that concluded at 5,761 million US$ in 2025. The fact that economic profit increased while invested capital generally decreased or remained stable suggests that the growth in value was driven by operational efficiency and improved asset productivity rather than capital expansion.
- Economic Spread Ratio Performance
- The economic spread ratio underwent a dramatic reversal, moving from -11.17% in 2021 to 10.94% in 2022. After a slight contraction to 9.30% in 2023, the ratio experienced a significant surge to 24.04% in 2024 and remained nearly constant at 24.22% in 2025. This trend indicates a widening gap between the return on invested capital and the weighted average cost of capital, signaling highly efficient capital utilization in the latter years of the period.
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 | ||||||
| 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: 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 × ÷ =
3 Click competitor name to see calculations.
The financial performance from 2021 through 2025 is characterized by consistent revenue expansion and a transition from value destruction to sustainable economic value creation.
- Revenue Growth Patterns
- Adjusted revenue demonstrated a monotonic upward trend, increasing from 6,488 million US dollars in 2021 to 12,368 million US dollars by 2025. This steady growth indicates a continuous expansion of the business scale over the five-year period.
- Economic Profit Trends
- A significant pivot occurred between 2021 and 2022, as economic profit shifted from a deficit of 655 million US dollars to a surplus of 754 million US dollars. Despite a temporary decline to 550 million US dollars in 2023, the metric peaked in 2024 at 1,474 million US dollars before experiencing a slight contraction to 1,395 million US dollars in 2025.
- Economic Profit Margin Dynamics
- The economic profit margin fluctuated in alignment with absolute economic profit, recovering from a low of -10.10% in 2021 to reach a maximum of 13.06% in 2024. The decline to 11.28% in 2025, occurring despite the continued growth in adjusted revenue, suggests that the growth in economic profit did not keep pace with revenue expansion, indicating a marginal reduction in the efficiency of capital utilization during the final year.