Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
An examination of long-term activity ratios reveals generally positive trends in asset utilization over the observed period, though with some fluctuations. The company demonstrates increasing efficiency in generating revenue from its assets, particularly in the latter half of the analyzed timeframe. However, variations exist across different measures of asset turnover, suggesting differing impacts from fixed asset investments and operating leases.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits a consistent upward trend from 46.34 in March 2022 to 114.40 in December 2025. This indicates a substantial improvement in the company’s ability to generate sales from its fixed assets. The rate of increase appears to accelerate after September 2023, suggesting potentially more effective asset management or a shift in asset composition. Prior to this acceleration, growth was steady but less pronounced.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio, when including operating leases and right-of-use assets, also demonstrates an increasing trend, moving from 16.30 in March 2022 to 47.63 in December 2025. While consistently lower than the ratio excluding these items, the trend is still positive. The inclusion of these lease obligations results in a larger asset base, consequently lowering the turnover ratio, but the increase suggests improved efficiency even with these obligations factored in. Growth appears relatively consistent throughout the period.
- Total Asset Turnover
- The total asset turnover ratio shows more moderate fluctuations. It begins at 0.39 in March 2022, rises to a peak of 0.53 in December 2024, and then slightly declines to 0.55 in December 2025. This suggests a generally improving ability to generate sales from all assets, but with some volatility. The ratio experienced a dip in the first half of 2023, before recovering and reaching its highest point. The slight decrease in the final quarter suggests potential stabilization or a shift in asset allocation.
- Equity Turnover
- The equity turnover ratio generally increases from 1.40 in March 2022 to 1.49 in June 2025, before decreasing to 1.39 in September 2025 and recovering to 1.49 in December 2025. This indicates a fluctuating, but overall positive, relationship between revenue and shareholder equity. A notable dip occurred in September 2023, followed by a recovery, suggesting potential seasonal effects or changes in capital structure. The final value indicates a return to the higher levels observed earlier in the period.
In summary, the company demonstrates improving efficiency in utilizing its assets to generate revenue. The most significant gains are observed in the net fixed asset turnover, while the total asset and equity turnover ratios exhibit more moderate and fluctuating trends. The inclusion of operating lease obligations impacts the fixed asset turnover ratio, but the overall trend remains positive. These trends suggest effective asset management and a growing ability to leverage assets for revenue generation.
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Net Fixed Asset Turnover
Airbnb Inc., net fixed asset turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Revenue | 2,778) | 4,095) | 3,096) | 2,272) | 2,480) | 3,732) | 2,748) | 2,142) | 2,218) | 3,397) | 2,484) | 1,818) | 1,902) | 2,884) | 2,104) | 1,509) | |||||
| Property and equipment, net | 107) | 122) | 132) | 138) | 147) | 166) | 170) | 171) | 160) | 147) | 132) | 122) | 121) | 118) | 118) | 143) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Net fixed asset turnover1 | 114.40 | 97.89 | 87.73 | 81.39 | 75.52 | 65.30 | 61.79 | 59.89 | 61.98 | 65.31 | 68.85 | 71.38 | 69.41 | 67.78 | 62.54 | 46.34 | |||||
| Benchmarks | |||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||
| Booking Holdings Inc. | 33.35 | 31.87 | 29.51 | 28.11 | 28.53 | 26.14 | 25.60 | 27.33 | 27.25 | 28.14 | 26.42 | 26.00 | 25.55 | 18.23 | 17.07 | 14.82 | |||||
| Chipotle Mexican Grill Inc. | 4.45 | 4.54 | 4.62 | 4.71 | 4.73 | 4.73 | 4.71 | 4.63 | 4.55 | 4.56 | 4.59 | 4.53 | 4.43 | 4.50 | 4.49 | 4.40 | |||||
| DoorDash, Inc. | 12.86 | 12.95 | 13.13 | 13.29 | 13.78 | 13.85 | 13.71 | 12.93 | 12.13 | 11.81 | 11.35 | 10.92 | 10.33 | 10.31 | 10.66 | 11.58 | |||||
| McDonald’s Corp. | 0.95 | 0.96 | 0.96 | 1.00 | 1.02 | 1.01 | 1.04 | 1.04 | 1.02 | 1.05 | 1.00 | 0.98 | 0.98 | 1.02 | 1.01 | 0.97 | |||||
| Starbucks Corp. | 4.38 | 4.13 | 4.12 | 4.16 | 4.17 | 4.51 | 4.67 | 4.82 | 4.87 | 4.96 | 4.99 | 4.91 | 4.92 | 4.99 | 4.85 | 4.75 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Net fixed asset turnover
= (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
÷ Property and equipment, net
= (2,778 + 4,095 + 3,096 + 2,272)
÷ 107 = 114.40
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates a generally increasing trend over the observed period, with some quarterly fluctuations. Initially, the ratio exhibits strong growth from March 31, 2022, to December 31, 2022, before stabilizing and then continuing to rise significantly towards the end of the period.
- Initial Growth Phase (Mar 31, 2022 – Dec 31, 2022)
- The ratio increased from 46.34 to 69.41 over this period. This suggests a more efficient utilization of property and equipment to generate revenue. The largest increase occurred between June 30, 2022, and September 30, 2022, indicating a particularly strong period of revenue generation relative to fixed assets.
- Stabilization and Continued Increase (Jan 1, 2023 – Dec 31, 2023)
- Following the initial growth, the ratio experienced a slight decrease from 71.38 to 61.98, then recovered to 65.30 and 75.52. This suggests a period of stabilization followed by renewed improvement in asset utilization. The ratio demonstrates volatility within the year, but ultimately concludes the year with a higher value than at the beginning.
- Accelerated Growth (Jan 1, 2024 – Dec 31, 2025)
- The ratio continued its upward trajectory, accelerating significantly from 59.89 to 114.40. This represents a substantial improvement in the efficiency with which property and equipment are being used to generate revenue. The most pronounced increases occurred between September 30, 2024, and March 31, 2025, and again between June 30, 2025, and December 31, 2025. This suggests a period of significant operational improvement or increased demand.
- Property and Equipment Trend
- Throughout the period, property and equipment, net, generally increased from 143 to 107. However, the rate of increase in property and equipment was consistently lower than the rate of increase in revenue, which is a primary driver of the observed increases in the net fixed asset turnover ratio. The decrease in property and equipment at the end of the period may indicate asset disposals or depreciation exceeding new investments.
Overall, the net fixed asset turnover ratio indicates improving efficiency in the utilization of fixed assets to generate revenue. The accelerating trend in the latter part of the period suggests a positive development in operational performance or market conditions.
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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 (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Revenue | 2,778) | 4,095) | 3,096) | 2,272) | 2,480) | 3,732) | 2,748) | 2,142) | 2,218) | 3,397) | 2,484) | 1,818) | 1,902) | 2,884) | 2,104) | 1,509) | |||||
| Property and equipment, net | 107) | 122) | 132) | 138) | 147) | 166) | 170) | 171) | 160) | 147) | 132) | 122) | 121) | 118) | 118) | 143) | |||||
| Operating lease right-of-use assets | 150) | 150) | 144) | 139) | 144) | 96) | 103) | 111) | 119) | 123) | 131) | 138) | 138) | 154) | 165) | 263) | |||||
| Property and equipment, net (including operating lease, right-of-use asset) | 257) | 272) | 276) | 277) | 291) | 262) | 273) | 282) | 279) | 270) | 263) | 260) | 259) | 273) | 283) | 406) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 47.63 | 43.91 | 41.96 | 40.55 | 38.15 | 41.37 | 38.48 | 36.32 | 35.54 | 35.56 | 34.55 | 33.49 | 32.43 | 29.45 | 26.12 | 16.30 | |||||
| Benchmarks | |||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||||||||||
| Booking Holdings Inc. | 18.71 | 18.31 | 17.37 | 17.06 | 17.07 | 15.55 | 14.81 | 14.99 | 14.35 | 14.99 | 14.43 | 13.76 | 13.01 | 12.51 | 11.24 | 9.40 | |||||
| Chipotle Mexican Grill Inc. | 1.67 | 1.69 | 1.73 | 1.76 | 1.77 | 1.75 | 1.77 | 1.74 | 1.72 | 1.69 | 1.70 | 1.69 | 1.64 | 1.62 | 1.62 | 1.59 | |||||
| DoorDash, Inc. | 9.12 | 9.21 | 9.17 | 9.14 | 9.19 | 9.12 | 8.88 | 7.90 | 7.52 | 7.44 | 7.03 | 6.69 | 6.14 | 5.92 | 5.90 | 6.51 | |||||
| Starbucks Corp. | 2.09 | 1.99 | 1.99 | 2.00 | 2.02 | 2.16 | 2.21 | 2.26 | 2.28 | 2.30 | 2.26 | 2.22 | 2.21 | 2.21 | 2.14 | 2.08 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
÷ Property and equipment, net (including operating lease, right-of-use asset)
= (2,778 + 4,095 + 3,096 + 2,272)
÷ 257 = 47.63
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates a consistent upward trend over the observed period, spanning from March 31, 2022, to December 31, 2025. This indicates increasing efficiency in generating revenue from the company’s net fixed assets, including operating leases and right-of-use assets.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ratio began at 16.30 and exhibited substantial growth, reaching 32.43 by the end of 2022. This initial surge suggests a rapid improvement in asset utilization during this timeframe, potentially driven by increased demand following pandemic-related disruptions.
- Continued Growth (Mar 31, 2023 – Dec 31, 2024)
- The upward trajectory continued into 2023 and 2024, with the ratio increasing from 33.49 to 41.37. While the rate of increase moderated compared to the initial period, the consistent growth indicates sustained efficiency gains. A peak of 41.37 was reached in September 2024.
- Recent Performance (Mar 31, 2025 – Dec 31, 2025)
- The most recent quarters show further acceleration in the ratio, culminating in a value of 47.63 by December 31, 2025. This represents the highest point in the observed period and suggests a significant enhancement in the company’s ability to generate revenue from its fixed asset base. The ratio increased from 40.55 in March 2025 to 47.63 in December 2025.
- Revenue and Asset Relationship
- Throughout the period, revenue generally increased alongside the net fixed asset turnover ratio. While revenue experienced quarterly fluctuations, the consistent rise in the turnover ratio suggests that the company has effectively managed its asset base to support revenue growth. The relatively stable net fixed asset base, combined with increasing revenue, is the primary driver of the observed trend.
In summary, the net fixed asset turnover ratio consistently increased over the analyzed period, indicating improved efficiency in utilizing fixed assets to generate revenue. The most significant gains occurred in the initial period, followed by sustained growth and a recent acceleration. This positive trend suggests effective asset management and a strong correlation between asset utilization and revenue generation.
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Total Asset Turnover
Airbnb Inc., total asset turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Revenue | 2,778) | 4,095) | 3,096) | 2,272) | 2,480) | 3,732) | 2,748) | 2,142) | 2,218) | 3,397) | 2,484) | 1,818) | 1,902) | 2,884) | 2,104) | 1,509) | |||||
| Total assets | 22,208) | 23,064) | 26,992) | 25,056) | 20,959) | 22,172) | 26,320) | 24,537) | 20,645) | 21,439) | 21,188) | 20,018) | 16,038) | 16,077) | 19,059) | 17,068) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Total asset turnover1 | 0.55 | 0.52 | 0.43 | 0.45 | 0.53 | 0.49 | 0.40 | 0.42 | 0.48 | 0.45 | 0.43 | 0.44 | 0.52 | 0.50 | 0.39 | 0.39 | |||||
| Benchmarks | |||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||
| Booking Holdings Inc. | 0.92 | 0.91 | 0.82 | 0.89 | 0.86 | 0.82 | 0.78 | 0.79 | 0.88 | 0.80 | 0.73 | 0.72 | 0.67 | 0.73 | 0.60 | 0.56 | |||||
| Chipotle Mexican Grill Inc. | 1.33 | 1.27 | 1.25 | 1.27 | 1.23 | 1.22 | 1.20 | 1.21 | 1.23 | 1.21 | 1.23 | 1.27 | 1.25 | 1.23 | 1.24 | 1.21 | |||||
| DoorDash, Inc. | 0.70 | 0.70 | 0.70 | 0.83 | 0.83 | 0.83 | 0.81 | 0.80 | 0.80 | 0.81 | 0.80 | 0.74 | 0.67 | 0.63 | 0.57 | 0.77 | |||||
| McDonald’s Corp. | 0.45 | 0.43 | 0.44 | 0.46 | 0.47 | 0.46 | 0.48 | 0.48 | 0.45 | 0.48 | 0.48 | 0.45 | 0.46 | 0.48 | 0.48 | 0.47 | |||||
| Starbucks Corp. | 1.16 | 1.09 | 1.15 | 1.13 | 1.15 | 1.21 | 1.24 | 1.26 | 1.22 | 1.22 | 1.19 | 1.16 | 1.15 | 1.14 | 1.08 | 1.05 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Total asset turnover
= (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
÷ Total assets
= (2,778 + 4,095 + 3,096 + 2,272)
÷ 22,208 = 0.55
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits fluctuations over the observed period, generally ranging between 0.39 and 0.55. An initial period of increase is followed by periods of relative stability and decline, with a recent upward trend.
- Initial Trend (Mar 31, 2022 – Dec 31, 2022)
- The ratio begins at 0.39 and demonstrates an increasing trend, reaching 0.52 by the end of 2022. This suggests improving efficiency in asset utilization during this timeframe, with the company generating more revenue per dollar of assets.
- Subsequent Fluctuations (Mar 31, 2023 – Dec 31, 2023)
- Following the peak in late 2022, the ratio experiences a slight decline to 0.43 in the first quarter of 2023, followed by a recovery to 0.48 by the end of the year. This indicates some volatility in asset utilization, but overall remains within a similar range to the previous period.
- Recent Performance (Mar 31, 2024 – Dec 31, 2025)
- The ratio decreases to 0.40 in the first quarter of 2024, then increases to 0.55 by the end of 2025. This recent upward trend suggests a renewed improvement in the efficiency of asset utilization, with the company generating a higher level of revenue from its asset base. The ratio reached its highest point in the observed period at the end of 2025.
- Overall Observations
- The total asset turnover ratio demonstrates a cyclical pattern. While there are periods of decline, the overall trend suggests the company is generally capable of effectively utilizing its assets to generate revenue. The recent increase in the ratio is a positive indicator, suggesting improved operational efficiency. Further investigation into the drivers of these fluctuations, such as changes in revenue composition or asset structure, may provide additional insights.
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Equity Turnover
Airbnb Inc., equity turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Revenue | 2,778) | 4,095) | 3,096) | 2,272) | 2,480) | 3,732) | 2,748) | 2,142) | 2,218) | 3,397) | 2,484) | 1,818) | 1,902) | 2,884) | 2,104) | 1,509) | |||||
| Stockholders’ equity | 8,199) | 8,610) | 7,782) | 7,937) | 8,412) | 8,488) | 8,002) | 7,896) | 8,165) | 9,123) | 5,059) | 5,291) | 5,560) | 5,540) | 5,245) | 4,737) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Equity turnover1 | 1.49 | 1.39 | 1.49 | 1.42 | 1.32 | 1.28 | 1.31 | 1.30 | 1.21 | 1.05 | 1.80 | 1.65 | 1.51 | 1.45 | 1.41 | 1.40 | |||||
| Benchmarks | |||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | 16.92 | 6.14 | 4.37 | 3.66 | 2.86 | |||||
| Chipotle Mexican Grill Inc. | 4.21 | 3.66 | 3.28 | 3.29 | 3.09 | 3.04 | 2.87 | 3.04 | 3.22 | 3.30 | 3.36 | 3.62 | 3.65 | 3.62 | 3.78 | 3.67 | |||||
| DoorDash, Inc. | 1.37 | 1.33 | 1.33 | 1.34 | 1.37 | 1.34 | 1.34 | 1.30 | 1.27 | 1.24 | 1.20 | 1.10 | 0.97 | 0.89 | 0.76 | 1.13 | |||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Equity turnover
= (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
÷ Stockholders’ equity
= (2,778 + 4,095 + 3,096 + 2,272)
÷ 8,199 = 1.49
2 Click competitor name to see calculations.
The equity turnover ratio exhibits fluctuations over the observed period, generally indicating a changing relationship between revenue generated and the amount of stockholders’ equity utilized to produce that revenue. An initial period of moderate increase is followed by a decline and subsequent recovery, with variations occurring throughout the timeframe.
- Initial Increase (Mar 31, 2022 – Jun 30, 2023)
- The equity turnover ratio demonstrates a gradual increase from 1.40 in March 2022 to 1.80 in June 2023. This suggests an improving efficiency in utilizing equity to generate revenue during this period. Revenue increased substantially over this time, while equity remained relatively stable, contributing to the rising ratio.
- Subsequent Decline and Stabilization (Sep 30, 2023 – Dec 31, 2023)
- A notable decrease in the equity turnover ratio is observed from 1.05 in September 2023 to 1.21 in December 2023. This decline coincides with a decrease in revenue and a significant increase in stockholders’ equity. The substantial growth in equity, coupled with lower revenue, resulted in a reduced turnover ratio.
- Fluctuations and Recent Trend (Mar 31, 2024 – Dec 31, 2025)
- From March 2024 through December 2025, the equity turnover ratio experiences continued fluctuations, remaining generally within the range of 1.28 to 1.49. While there are quarterly variations, the ratio demonstrates a slight upward trend towards the end of the period, closing at 1.49 in December 2025. Revenue and equity both show variability, contributing to these fluctuations. The final value suggests a return to levels of efficiency similar to those observed in the earlier part of the analyzed timeframe.
Overall, the equity turnover ratio indicates a dynamic relationship between revenue and equity. The observed changes likely reflect strategic decisions, market conditions, and operational performance impacting both revenue generation and equity management.
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