Airbnb Inc. (NASDAQ:ABNB)

Current Ratio

The current ratio exhibits fluctuations within a generally narrow range, starting at 1.66 on March 31, 2021, and experiencing both declines and recoveries over the periods. Peaks are observed around December 31, 2021 (1.95) and December 31, 2022 (1.86), indicating improved short-term liquidity during these quarters. However, from March 31, 2024 onward, there is a gradual decline, reaching 1.23 by June 30, 2025, suggesting a slight weakening in the company's ability to cover current liabilities with current assets toward the most recent periods.

Quick Ratio

The quick ratio closely mirrors the behavior of the current ratio, evidencing similar quarterly dynamics. Initial values were around 1.62 in March 2021, peaking near 1.91 in December 2021 and maintaining elevated levels near 1.83 in December 2022. Subsequently, the quick ratio follows a decreasing trend from early 2024, dipping to 1.20 by June 30, 2025. This parallel movement with the current ratio indicates consistent changes in liquid assets relative to current liabilities over time.

Cash Ratio

The cash ratio shows greater variability compared to the current and quick ratios, beginning at 1.00 in March 2021 and peaking at 1.31 by December 31, 2021. The ratio declines afterwards, with intermittent recoveries such as in December 2022 (1.21) and December 2024 (1.04). In the most recent periods, a pronounced downward trend is evident, decreasing to 0.60 by June 30, 2025. This indicates a reduction in immediate cash and cash equivalents available to cover current liabilities, implying tightening liquidity from a purely cash perspective in the later quarters.

The analysis of the quarterly financial data reveals several notable trends in liquidity and working capital management over the observed periods.

Current Assets

Current assets exhibited a generally increasing trend from March 2021 through June 2025, rising from approximately US$10.9 billion to about US$23.2 billion. The data show some fluctuations, such as peaks around mid-2022 and mid-2024, followed by declines in the subsequent quarters. Despite these fluctuations, the overall trajectory has been upward, indicating growth in liquid and short-term assets.

Current Liabilities

Current liabilities also increased significantly over the same period, moving from roughly US$6.6 billion at the beginning of 2021 to over US$18.8 billion by mid-2025. Similar to current assets, liabilities peaked notably around mid-2024 and mid-2025. The magnitude of increases in liabilities often outpaced those of current assets, especially in later periods.

Current Ratio

The current ratio, calculated as current assets divided by current liabilities, fluctuated between approximately 1.23 and 1.95 throughout the periods. Early in 2021, the ratio was relatively strong, peaking near 1.95 at the end of 2021, signifying good short-term liquidity. However, from early 2023 onward, the ratio generally declined, reaching a low near 1.23 by mid-2025. These lower values indicate a decreasing buffer of current assets relative to current liabilities, which could signal increased liquidity risk or tighter working capital management.

In summary, while both current assets and current liabilities increased substantially over the observed period, liabilities grew at a slightly faster pace in the latter years. This shift contributed to a gradual erosion of the current ratio, suggesting a modest weakening in the company’s ability to cover short-term obligations with available assets. The fluctuating pattern of the current ratio points to varying liquidity positions across quarters, emphasizing the need for ongoing monitoring of working capital dynamics.

The analysis of the quarterly financial data reveals several notable trends in the liquidity position of the company over the observed periods.

Total Quick Assets (US$ in millions)

The total quick assets generally exhibit a cyclical pattern with fluctuations occurring within each year. Starting at approximately $10.7 billion in Q1 2021, these assets increased sharply to a peak around Q2 2021 at $13.8 billion, then experienced a decline in Q3 2021 before stabilizing near $12.2 billion by the end of 2021. This cyclical pattern repeats, with total quick assets rising significantly in Q1 and Q2 2022, reaching above $17.5 billion, followed by a decrease towards the end of 2022. Similar seasonal peaks are observed in subsequent years, with notable highs surpassing $20 billion in early 2024 and Q1 2025. Overall, total quick assets show an upward trend over the entire period, reflecting growth in highly liquid assets.

Current Liabilities (US$ in millions)

Current liabilities also demonstrate a fluctuating pattern, closely aligned with the cyclicality seen in quick assets. Starting around $6.6 billion in Q1 2021, current liabilities rose significantly to nearly $9.5 billion by Q2 2021, then decreased sharply through the end of 2021. The trend repeats with liabilities peaking at $11.3 billion in Q2 2022, followed by a decline towards year-end. In subsequent years, similar patterns occurred, with liabilities reaching a peak of approximately $18.8 billion in Q2 2025. The overall movement in current liabilities suggests seasonal increases around mid-year and decreases towards year-end, consistent with operational cycles or payment schedules.

Quick Ratio (ratio)

The quick ratio displays a notable inverse relationship with both quick assets and current liabilities. Beginning at 1.62 in Q1 2021, the ratio decreased through mid-2021 despite asset growth, likely influenced by even faster increases in current liabilities. The ratio peaked near 1.91 at the end of 2021 as liabilities decreased and assets remained stable. A similar pattern is observed in subsequent years where the quick ratio declines in the first half of each year, reaching lows as current liabilities rise, and recovers towards the end of each year correlating with reduced liabilities and relatively stable liquidity. In the long term, there is a gradual decline in the quick ratio from values above 1.6 in 2021 to near 1.2 by mid-2025, indicating a potential weakening in the company's short-term liquidity relative to its current liabilities.

In summary, the data suggest that the company experiences consistent seasonal fluctuations in both its quick assets and current liabilities, resulting in corresponding cyclical variations in the quick ratio. While total quick assets have generally increased over the observed time frame, the quick ratio’s downward trend may warrant monitoring to ensure that the growth in liquid assets sufficiently covers the rising current liabilities, maintaining adequate short-term financial stability.

The financial data exhibits notable fluctuations in cash assets and current liabilities over the observed quarterly periods. Total cash assets generally demonstrate an upward trajectory from March 2021 through June 2025, with some periods reflecting minor declines or stabilization.

Total Cash Assets

Starting at 6,569 million US dollars in March 2021, total cash assets increase to a peak around the range of 11,200 million US dollars by mid-2024, with intermittent periods of small decreases. The figure reaches approximately 11,492 million US dollars by March 2025, evidencing overall strong cash accumulation over the evaluation horizon.

Current Liabilities

Current liabilities display higher variability, with significant spikes occurring in certain quarters. Beginning at 6,573 million US dollars in March 2021, liabilities increase markedly in mid-2021 and again in 2022 and 2024. The highest recorded current liabilities reach approximately 18,816 million US dollars by June 2025, suggesting periods of increased short-term obligations potentially impacting liquidity management.

Cash Ratio

The cash ratio, which measures liquidity by comparing cash assets to current liabilities, fluctuates considerably across the time series. The ratio shows values above 1.0 in several quarters in 2021 and 2022, indicating sufficient cash to cover current liabilities in those periods. However, from 2023 onward, the cash ratio mostly remains below 1.0, dipping as low as 0.60 by June 2025. This trend suggests a growing disparity whereby cash holdings become insufficient relative to current liabilities, potentially signaling increased liquidity risk.

In summary, while the company’s total cash assets generally expand over time, current liabilities increase at a faster or more volatile pace in certain periods. The resulting decline in the cash ratio after early 2023 highlights a reduction in short-term financial safety buffer. This pattern may warrant closer monitoring of liquidity conditions and working capital management to ensure ongoing financial stability.