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 – 18.88% × 5,761 = 1,399
The financial performance from 2021 to 2025 demonstrates a significant transition from economic value destruction to consistent value creation. A critical pivot occurred between 2021 and 2022, where economic profit moved from a deficit to a surplus, indicating that operating returns began to exceed the cost of invested capital.
- Net Operating Profit After Taxes (NOPAT)
- A substantial growth trend is observed in NOPAT, which rose from 465 million USD in 2021 to a peak of 2,644 million USD in 2024. While a slight decrease occurred in 2023 and 2025, the overall increase reflects a strengthened ability to generate operating earnings after tax.
- Invested Capital
- Invested capital peaked at 6,894 million USD in 2022 before entering a general decline to 5,761 million USD by 2025. This pattern suggests an initial phase of capital expansion followed by an optimization of the capital base, reducing the total investment required to sustain operations.
- Cost of Capital
- The cost of capital remained remarkably stable throughout the period, hovering consistently around 19%, with a narrow variance between a high of 19.07% in 2023 and a low of 18.88% in 2025. This indicates a constant hurdle rate for investment returns over the five-year span.
- Economic Profit Performance
- Economic profit transitioned from negative 651 million USD in 2021 to a high of 1,478 million USD in 2024. The move into positive territory in 2022 signals that the return on invested capital surpassed the cost of capital. The sustained positive economic profit through 2025 confirms that the entity is generating value in excess of its required return on investment.
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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 | × | 19.46% | = | 18.85% | ||
| 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 | 18.88% | ||||||||||
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 | × | 19.46% | = | 18.99% | ||
| 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 | 19.01% | ||||||||||
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 | × | 19.46% | = | 19.05% | ||
| 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 | 19.07% | ||||||||||
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 | × | 19.46% | = | 18.99% | ||
| 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 | 19.02% | ||||||||||
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 | × | 19.46% | = | 19.00% | ||
| 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 | 19.03% | ||||||||||
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 | 1,399) | 1,478) | 554) | 758) | (651) | |
| Invested capital2 | 5,761) | 6,133) | 5,911) | 6,894) | 5,866) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | 24.28% | 24.10% | 9.37% | 11.00% | -11.10% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Booking Holdings Inc. | 24.23% | 29.09% | 14.64% | 3.79% | -13.66% | |
| Chipotle Mexican Grill Inc. | 9.14% | 8.60% | 7.02% | 2.82% | -1.67% | |
| DoorDash, Inc. | -19.02% | -27.06% | -39.50% | -53.28% | -39.79% | |
| McDonald’s Corp. | 9.08% | 8.60% | 8.67% | 5.87% | 8.30% | |
| Starbucks Corp. | -4.65% | 3.51% | 5.21% | 2.80% | 4.06% | |
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 × 1,399 ÷ 5,761 = 24.28%
4 Click competitor name to see calculations.
The financial trajectory from 2021 to 2025 demonstrates a transition from economic value destruction to consistent and significant value creation. This period is characterized by a sharp recovery in profitability and a marked improvement in the efficiency of deployed capital.
- Economic Profit Evolution
- A fundamental reversal is observed between 2021 and 2022, as economic profit shifted from a deficit of US$ 651 million to a surplus of US$ 758 million. Following a minor contraction in 2023, profitability experienced a substantial surge in 2024, peaking at US$ 1,478 million, and remained strong at US$ 1,399 million by the end of 2025.
- Invested Capital Trends
- Invested capital reached a peak of US$ 6,894 million in 2022 before entering a general decline. By 2025, invested capital decreased to US$ 5,761 million, the lowest level within the analyzed period. The simultaneous occurrence of decreasing invested capital and increasing economic profit suggests an optimization of the asset base and improved operational leverage.
- Economic Spread Ratio Analysis
- The economic spread ratio indicates a robust expansion in the margin between the return on invested capital and the cost of capital. After starting at -11.10% in 2021, the ratio climbed to 11.00% in 2022 and 9.37% in 2023. A significant acceleration occurred in 2024, with the ratio jumping to 24.10%, and further stabilizing at 24.28% in 2025. This trend confirms a substantial increase in the company's ability to generate returns well above its cost of funding.
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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 | 1,399) | 1,478) | 554) | 758) | (651) | |
| 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 | 11.31% | 13.09% | 5.45% | 8.74% | -10.04% | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Booking Holdings Inc. | 11.62% | 15.90% | 7.82% | 3.02% | -18.71% | |
| Chipotle Mexican Grill Inc. | 5.59% | 5.18% | 4.26% | 1.76% | -1.21% | |
| DoorDash, Inc. | -15.59% | -15.80% | -23.96% | -43.06% | -25.88% | |
| McDonald’s Corp. | 18.11% | 16.47% | 17.02% | 11.51% | 17.04% | |
| Starbucks Corp. | -3.01% | 2.28% | 3.22% | 1.79% | 3.31% | |
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 × 1,399 ÷ 12,368 = 11.31%
3 Click competitor name to see calculations.
The financial performance between 2021 and 2025 exhibits a transition from economic value destruction to sustained value creation. After an initial period of negative returns relative to the cost of capital, there is a clear trajectory toward increased profitability and operational scale.
- Adjusted Revenue Growth
- A consistent upward trend is observed in adjusted revenue, which increased from 6,488 million US$ in 2021 to 12,368 million US$ by 2025. This steady growth indicates a continuous expansion of the business's top-line capacity throughout the analyzed period.
- Economic Profit Evolution
- Economic profit experienced a significant reversal, moving from a deficit of 651 million US$ in 2021 to a positive 758 million US$ in 2022. Despite a slight contraction to 554 million US$ in 2023, a sharp increase occurred in 2024, peaking at 1,478 million US$, before stabilizing at 1,399 million US$ in 2025.
- Economic Profit Margin Analysis
- The economic profit margin mirrors the volatility of the absolute economic profit. The margin shifted from -10.04% in 2021 to a positive 8.74% in 2022, followed by a dip to 5.45% in 2023. A period of high efficiency was reached in 2024 with a margin of 13.09%, which slightly moderated to 11.31% by the end of 2025.
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