Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Airbnb Inc., long-term (investment) activity ratios
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).
- Net fixed asset turnover
- The net fixed asset turnover ratio demonstrates a significant upward trend from 12.5 in 2020 to 75.52 in 2024. After a sharp increase from 12.5 to 38.27 in 2021, the ratio more than doubled to 69.41 in 2022. A slight decline to 61.98 occurred in 2023, followed by a rebound to its highest value of 75.52 in 2024. This suggests improving efficiency in generating revenue from net fixed assets over the given period, despite the minor dip in 2023.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- This adjusted net fixed asset turnover ratio also exhibits a consistent growth pattern, rising steadily from 5.16 in 2020 to 38.15 in 2024. The increase is gradual but continuous without pronounced volatility, indicating increased utilization of fixed assets, including leased assets, to drive sales over time.
- Total asset turnover
- Total asset turnover shows moderate growth overall, moving from 0.32 in 2020 up to 0.53 in 2024. The ratio improves steadily until 2022, reaching 0.52, then slightly falls to 0.48 in 2023, before rising again to 0.53 in 2024. This pattern points to an overall enhancement in the use of total assets to generate revenue, with a minor fluctuation in the penultimate year.
- Equity turnover
- Equity turnover trends upward initially, growing from 1.16 in 2020 to 1.51 in 2022, followed by a decline to 1.21 in 2023. The ratio then increases again to 1.32 in 2024. This variation may be indicative of changes in shareholder equity or net sales, reflecting adjustments in how effectively equity is utilized to support revenue generation over the period.
Net Fixed Asset Turnover
Airbnb Inc., net fixed asset turnover 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) | ||||||
| Revenue | 11,102) | 9,917) | 8,399) | 5,992) | 3,378) | |
| Property and equipment, net | 147) | 160) | 121) | 157) | 270) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 75.52 | 61.98 | 69.41 | 38.27 | 12.50 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Booking Holdings Inc. | 28.53 | 27.25 | 25.55 | 13.33 | 8.99 | |
| Chipotle Mexican Grill Inc. | 4.73 | 4.55 | 4.43 | 4.27 | 3.78 | |
| DoorDash, Inc. | 13.78 | 12.13 | 10.33 | 12.16 | 13.74 | |
| McDonald’s Corp. | 0.95 | 0.95 | 0.92 | 0.94 | 0.77 | |
| Starbucks Corp. | 4.17 | 4.87 | 4.92 | 4.56 | 3.77 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Consumer Services | 2.96 | 2.93 | 2.73 | 2.39 | 1.82 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Discretionary | 3.24 | 3.51 | 3.48 | 3.32 | 3.38 | |
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 2024 Calculation
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= 11,102 ÷ 147 = 75.52
2 Click competitor name to see calculations.
The financial data exhibits a clear growth trajectory in revenue over the five-year period, increasing from $3,378 million in 2020 to $11,102 million in 2024. This represents a significant expansion, with revenue more than tripling in this timeframe, indicating strong operational performance and market demand.
Conversely, the net value of property and equipment demonstrates a declining trend from $270 million in 2020 to $147 million in 2024. This reduction might suggest divestment in fixed assets, asset optimization, or changes in capital expenditure strategy.
The net fixed asset turnover ratio shows notable improvement, rising from 12.5 in 2020 to 75.52 in 2024. This indicates an enhanced efficiency in utilizing fixed assets to generate revenue. The sharp increase in this ratio, particularly highlighted by values above 60 from 2022 onwards, reflects a more effective deployment or management of property and equipment relative to the company's growing revenue base.
- Revenue
- Consistently increasing, with over a threefold growth between 2020 and 2024.
- Property and equipment, net
- Declining steadily, suggesting reduced investment or disposal of fixed assets.
- Net fixed asset turnover
- Significant upward trend, indicating improved asset efficiency in revenue generation.
Overall, the data reflects a growing company that is generating substantially higher revenue with a leaner asset base, resulting in improved asset turnover and operational efficiency.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Airbnb Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 11,102) | 9,917) | 8,399) | 5,992) | 3,378) | |
| Property and equipment, net | 147) | 160) | 121) | 157) | 270) | |
| Operating lease right-of-use assets | 144) | 119) | 138) | 272) | 384) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 291) | 279) | 259) | 429) | 654) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 38.15 | 35.54 | 32.43 | 13.98 | 5.16 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Booking Holdings Inc. | 17.07 | 14.35 | 13.01 | 8.31 | 5.29 | |
| Chipotle Mexican Grill Inc. | 1.77 | 1.72 | 1.64 | 1.54 | 1.38 | |
| DoorDash, Inc. | 9.19 | 7.52 | 6.14 | 6.62 | 6.99 | |
| McDonald’s Corp. | 0.67 | 0.66 | 0.64 | 0.61 | 0.50 | |
| Starbucks Corp. | 2.02 | 2.28 | 2.21 | 1.99 | 1.64 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Consumer Services | 1.81 | 1.77 | 1.63 | 1.36 | 1.03 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Discretionary | 2.53 | 2.69 | 2.66 | 2.52 | 2.58 | |
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 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 11,102 ÷ 291 = 38.15
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue demonstrates a consistent and strong upward trajectory over the five-year period. Starting at $3,378 million in 2020, the figure increases substantially each year, reaching $11,102 million by 2024. This signifies robust growth and an expanding business scale, with the revenue more than tripling within the period analyzed.
- Property and Equipment, Net
- The net value of property and equipment, inclusive of operating lease right-of-use assets, shows a declining trend from 2020 to 2022, falling from $654 million to $259 million. Following this reduction, there is a slight recovery in the values for the years 2023 and 2024, with amounts of $279 million and $291 million respectively. Overall, this indicates a contraction in capital tied up in fixed assets initially, followed by a modest rebound.
- Net Fixed Asset Turnover
- This ratio, which measures revenue generated per dollar of net fixed assets, exhibits a marked upward trend, increasing from 5.16 in 2020 to 38.15 in 2024. The continuous increase suggests improved efficiency in the utilization of fixed assets over time, indicating the company is generating significantly more revenue for each unit of asset invested. This aligns with the observed decrease in net fixed assets alongside rapidly growing revenue, reflecting operational optimization or asset-light business strategies.
Total Asset Turnover
Airbnb Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 11,102) | 9,917) | 8,399) | 5,992) | 3,378) | |
| Total assets | 20,959) | 20,645) | 16,038) | 13,708) | 10,491) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.53 | 0.48 | 0.52 | 0.44 | 0.32 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Booking Holdings Inc. | 0.86 | 0.88 | 0.67 | 0.46 | 0.31 | |
| Chipotle Mexican Grill Inc. | 1.23 | 1.23 | 1.25 | 1.13 | 1.00 | |
| DoorDash, Inc. | 0.83 | 0.80 | 0.67 | 0.72 | 0.45 | |
| McDonald’s Corp. | 0.47 | 0.45 | 0.46 | 0.43 | 0.36 | |
| Starbucks Corp. | 1.15 | 1.22 | 1.15 | 0.93 | 0.80 | |
| Total Asset Turnover, Sector | ||||||
| Consumer Services | 0.76 | 0.74 | 0.70 | 0.60 | 0.49 | |
| Total Asset Turnover, Industry | ||||||
| Consumer Discretionary | 0.93 | 0.97 | 0.96 | 0.88 | 0.84 | |
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 2024 Calculation
Total asset turnover = Revenue ÷ Total assets
= 11,102 ÷ 20,959 = 0.53
2 Click competitor name to see calculations.
The analysis reveals a generally increasing trend in total asset turnover, punctuated by a slight decrease in the most recent period examined. Revenue demonstrated consistent growth throughout the analyzed timeframe, while total assets also increased, though at a varying rate. The interplay between these two figures dictates the observed turnover ratio behavior.
- Total Asset Turnover
- The total asset turnover ratio increased from 0.32 in 2020 to 0.52 in 2022, indicating improving efficiency in asset utilization to generate revenue. This suggests the company was becoming more effective at converting its investments in assets into sales. However, the ratio decreased to 0.48 in 2023 before recovering to 0.53 in 2024. The dip in 2023 warrants further investigation, potentially related to a temporary slowdown in sales relative to the asset base or a significant increase in assets without a corresponding revenue increase.
- The rise to 0.53 in 2024 represents a new high for the period, suggesting a renewed improvement in asset utilization. This could be attributed to increased operational efficiency, more effective marketing strategies, or a shift in asset composition towards more productive assets.
Overall, the trend suggests a generally positive relationship between asset investment and revenue generation. While the 2023 decrease introduces a note of caution, the subsequent recovery in 2024 indicates a continued ability to effectively leverage assets for revenue production. Continued monitoring of this ratio is recommended to assess the sustainability of this trend and identify any potential underlying factors influencing asset utilization.
Equity Turnover
Airbnb Inc., equity turnover 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) | ||||||
| Revenue | 11,102) | 9,917) | 8,399) | 5,992) | 3,378) | |
| Stockholders’ equity | 8,412) | 8,165) | 5,560) | 4,776) | 2,902) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.32 | 1.21 | 1.51 | 1.25 | 1.16 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Booking Holdings Inc. | — | — | 6.14 | 1.77 | 1.39 | |
| Chipotle Mexican Grill Inc. | 3.09 | 3.22 | 3.65 | 3.29 | 2.96 | |
| DoorDash, Inc. | 1.37 | 1.27 | 0.97 | 1.05 | 0.61 | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Equity Turnover, Sector | ||||||
| Consumer Services | 25.84 | 42.99 | 34.91 | 10.21 | — | |
| Equity Turnover, Industry | ||||||
| Consumer Discretionary | 3.21 | 3.82 | 4.14 | 3.70 | 4.73 | |
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 2024 Calculation
Equity turnover = Revenue ÷ Stockholders’ equity
= 11,102 ÷ 8,412 = 1.32
2 Click competitor name to see calculations.
The financial data reveals several key trends over the five-year period ending December 31, 2024.
- Revenue
- Revenue has exhibited a consistent upward trajectory from 3,378 million US dollars in 2020 to 11,102 million US dollars in 2024. The growth rate remains strong throughout the period, with the company nearly tripling its revenue over five years. The most notable increases occurred between 2020 and 2022, followed by continued but slightly moderated growth in subsequent years.
- Stockholders’ Equity
- Stockholders' equity also shows a positive trend, rising from 2,902 million US dollars in 2020 to 8,412 million US dollars in 2024. The increase is steady, with a particularly significant jump between 2022 and 2023. This indicates that the company has been consistently strengthening its equity base over the period, reflecting either retained earnings or other equity injections.
- Equity Turnover Ratio
- The equity turnover ratio, which measures revenue generated per unit of equity, fluctuates moderately over the years. It started at 1.16 in 2020, increased to a peak of 1.51 in 2022, then declined to 1.21 in 2023, and rose again to 1.32 in 2024. This suggests variability in how efficiently the company utilized its equity to generate revenue, with the highest efficiency observed in 2022.
Overall, the data indicates robust growth in both revenue and stockholders’ equity, with some fluctuations in operational efficiency as measured by the equity turnover ratio. The company appears to be expanding its financial base while improving its revenue-generating capacity, albeit with periodic variations in equity utilization effectiveness.