Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Airbnb Inc., profitability 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).
- Gross profit margin
- The gross profit margin shows a consistent upward trend over the five-year period, rising from 74.07% in 2020 to 83.08% in 2024. This steady increase indicates improving efficiency in managing the cost of goods sold relative to revenue, reflecting stronger profitability at the gross level.
- Operating profit margin
- The operating profit margin improved markedly from a negative margin of -106.27% in 2020 to a positive 7.17% in 2021. It continued to increase to 21.45% in 2022, then experienced a decline to 15.31% in 2023 before rising again to 23% in 2024. Overall, this suggests a significant turnaround in operating profitability, though with some fluctuations after initial recovery.
- Net profit margin
- The net profit margin mirrors the trend seen in operating profitability but with sharper changes. From a substantial loss of -135.71% in 2020, it recovered to a marginally negative figure of -5.88% in 2021, then achieved positive net margins of 22.54% in 2022 and peaked at 48.32% in 2023, before declining to 23.85% in 2024. The sharp increase followed by a decrease suggests volatility in bottom-line profitability despite overall improvement compared to the initial period.
- Return on equity (ROE)
- ROE improved dramatically, moving from a negative -158% in 2020 to -7.37% in 2021, then turning strongly positive at 34.05% in 2022 and reaching a high of 58.69% in 2023 before dropping to 31.48% in 2024. This reflects enhanced effectiveness in generating returns for shareholders, although the decline in 2024 indicates some loss of momentum.
- Return on assets (ROA)
- ROA shows a similar pattern to ROE but with lower magnitude changes. It moved from -43.7% in 2020 to -2.57% in 2021, then improved significantly to 11.8% in 2022 and 23.21% in 2023, followed by a reduction to 12.63% in 2024. This indicates increasing efficiency in asset utilization to generate profits, albeit with a decrease in the most recent year.
Return on Sales
Return on Investment
Gross Profit Margin
Airbnb Inc., gross profit margin 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) | ||||||
| Gross profit | 9,224) | 8,214) | 6,900) | 4,836) | 2,502) | |
| Revenue | 11,102) | 9,917) | 8,399) | 5,992) | 3,378) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 83.08% | 82.83% | 82.15% | 80.71% | 74.07% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Chipotle Mexican Grill Inc. | 26.67% | 26.20% | 23.88% | 22.62% | 17.40% | |
| McDonald’s Corp. | 56.75% | 57.12% | 56.97% | 54.17% | 50.77% | |
| Starbucks Corp. | 26.84% | 27.37% | 25.96% | 28.87% | 21.51% | |
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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 9,224 ÷ 11,102 = 83.08%
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue demonstrates a consistent upward trajectory over the five-year period. Starting at $3,378 million at the end of 2020, revenue increased substantially each subsequent year, reaching $11,102 million by the end of 2024. This reflects a strong and sustained growth rate, indicating expanding business operations and market demand.
- Gross Profit Evolution
- Gross profit has also shown significant growth, progressing from $2,502 million in 2020 to $9,224 million in 2024. The increase mirrors the expansion in revenue, with gross profit more than tripling over the period. This suggests effective cost management and operational efficiency improvements alongside increasing sales volumes.
- Gross Profit Margin Analysis
- The gross profit margin has improved steadily, moving from 74.07% in 2020 to 83.08% in 2024. This upward trend in margin percentage indicates enhanced profitability at the gross level, implying either improved pricing power, reductions in cost of goods sold, or a combination of both.
- Overall Financial Performance
- Overall, the data depicts robust financial performance with consistent revenue growth, expanding gross profit, and improving gross profit margins over the analyzed five-year span. This suggests a positive operational and strategic position, with increasing efficiency and margin enhancement contributing to stronger financial health.
Operating Profit Margin
Airbnb Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Income (loss) from operations | 2,553) | 1,518) | 1,802) | 429) | (3,590) | |
| Revenue | 11,102) | 9,917) | 8,399) | 5,992) | 3,378) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 23.00% | 15.31% | 21.45% | 7.17% | -106.27% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Booking Holdings Inc. | 31.83% | 27.31% | 29.85% | 22.78% | -9.28% | |
| Chipotle Mexican Grill Inc. | 16.94% | 15.78% | 13.44% | 10.67% | 4.85% | |
| McDonald’s Corp. | 45.19% | 45.68% | 40.42% | 44.59% | 38.13% | |
| Starbucks Corp. | 14.95% | 16.32% | 14.32% | 16.77% | 6.64% | |
| Operating Profit Margin, Sector | ||||||
| Consumer Services | 26.92% | 25.75% | 24.62% | 24.69% | 8.41% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | 11.04% | 9.12% | 8.47% | 8.79% | 6.48% | |
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
Operating profit margin = 100 × Income (loss) from operations ÷ Revenue
= 100 × 2,553 ÷ 11,102 = 23.00%
2 Click competitor name to see calculations.
- Income (loss) from operations
- The operating income displays a significant improvement over the five-year period. In 2020, the company reported a substantial operating loss of $3,590 million. This loss reversed to a positive operating income of $429 million in 2021, marking the beginning of profitability from operations. The upward trend continued in 2022 with operating income reaching $1,802 million. Although there was a slight decline to $1,518 million in 2023, the figure rebounded strongly to $2,553 million in 2024. Overall, the trend indicates a solid recovery and growth beyond initial operational losses.
- Revenue
- Revenue increased consistently each year from $3,378 million in 2020 to $11,102 million in 2024. The growth rate appears robust, with revenue nearly tripling over the period. This steady rise suggests expanding sales volume, successful business development efforts, or stronger market penetration, contributing positively to the company's scale and earning potential.
- Operating profit margin
- The operating profit margin shows a dramatic turnaround. Initially, in 2020 the margin was deeply negative at -106.27%, reflecting significant operational inefficiencies or high costs relative to revenue. By 2021, the margin shifted to a positive 7.17%, indicating the start of operational profitability. The margin improved substantially to 21.45% in 2022, demonstrating effective cost management or higher-margin revenue. Despite a decline to 15.31% in 2023, the margin increased again to 23% in 2024, reaching its highest level in the analyzed period. This pattern corroborates the company's enhanced profitability and operational effectiveness over time.
Net Profit Margin
Airbnb Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 2,648) | 4,792) | 1,893) | (352) | (4,585) | |
| Revenue | 11,102) | 9,917) | 8,399) | 5,992) | 3,378) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 23.85% | 48.32% | 22.54% | -5.88% | -135.71% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Booking Holdings Inc. | 24.78% | 20.07% | 17.89% | 10.63% | 0.87% | |
| Chipotle Mexican Grill Inc. | 13.56% | 12.45% | 10.41% | 8.65% | 5.94% | |
| McDonald’s Corp. | 31.72% | 33.22% | 26.65% | 32.49% | 24.63% | |
| Starbucks Corp. | 10.40% | 11.46% | 10.18% | 14.45% | 3.95% | |
| Net Profit Margin, Sector | ||||||
| Consumer Services | 20.37% | 22.32% | 17.09% | 17.21% | 2.53% | |
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | 8.74% | 7.92% | 5.15% | 9.20% | 5.24% | |
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 profit margin = 100 × Net income (loss) ÷ Revenue
= 100 × 2,648 ÷ 11,102 = 23.85%
2 Click competitor name to see calculations.
The financial data over the five-year period reflect a significant transformation in the company's profitability and revenue generation.
- Net Income (Loss)
- The net income figures display a marked improvement across the time span, with an initial substantial loss of US$ -4,585 million in 2020. This loss narrows considerably in 2021 to US$ -352 million. From 2022 onwards, net income turns positive, rising sharply to US$ 1,893 million, then more than doubling to US$ 4,792 million in 2023 before declining to US$ 2,648 million in 2024. This suggests a significant turnaround and subsequent fluctuation in profitability.
- Revenue
- Revenue has shown consistent growth year-over-year. Starting at US$ 3,378 million in 2020, revenue progressively increases to US$ 5,992 million in 2021, then US$ 8,399 million in 2022. The upward trend continues with revenues of US$ 9,917 million in 2023 and US$ 11,102 million in 2024, indicating steady expansion in the company's sales or service offerings.
- Net Profit Margin
- The net profit margin moves from a deeply negative -135.71% in 2020 to a narrowed deficit of -5.88% in 2021, indicating improved cost management or operational efficiency. The margin then turns positive in 2022 at 22.54%, jumps substantially to 48.32% in 2023, reflecting exceptional profitability relative to revenue, before decreasing to 23.85% in 2024. These fluctuations suggest variability in cost control or one-time impacts affecting net income relative to revenue.
Overall, the data reveal a company transitioning from heavy losses to strong profitability, driven by increasing revenue and improving margins. However, the reduction in profit margin and net income in 2024 following peak levels in 2023 indicates potential emerging challenges or changes in operational dynamics that may warrant further investigation.
Return on Equity (ROE)
Airbnb Inc., ROE 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) | ||||||
| Net income (loss) | 2,648) | 4,792) | 1,893) | (352) | (4,585) | |
| Stockholders’ equity | 8,412) | 8,165) | 5,560) | 4,776) | 2,902) | |
| Profitability Ratio | ||||||
| ROE1 | 31.48% | 58.69% | 34.05% | -7.37% | -158.00% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Booking Holdings Inc. | — | — | 109.92% | 18.86% | 1.21% | |
| Chipotle Mexican Grill Inc. | 41.97% | 40.13% | 37.97% | 28.42% | 17.61% | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| ROE, Sector | ||||||
| Consumer Services | — | — | — | 396.84% | — | |
| ROE, Industry | ||||||
| Consumer Discretionary | 28.36% | 30.61% | 21.65% | 34.37% | 25.29% | |
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
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 2,648 ÷ 8,412 = 31.48%
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income exhibited a significant turnaround over the period. In 2020, the company reported a substantial net loss of 4585 million USD, which improved markedly to a net loss of 352 million USD in 2021. From 2022 onwards, the company achieved positive net income, reaching 1893 million USD in 2022 and further increasing to 4792 million USD in 2023. However, in 2024, net income declined to 2648 million USD, indicating some volatility after the peak in 2023.
- Stockholders’ Equity
- The stockholders’ equity showed consistent growth throughout the period. It increased from 2902 million USD in 2020 to 4776 million USD in 2021, then further to 5560 million USD in 2022. This growth trend accelerated, reaching 8165 million USD in 2023 and 8412 million USD in 2024, reflecting strengthening financial stability and increased shareholder value.
- Return on Equity (ROE)
- ROE demonstrated a marked recovery and positive trend after initial negative values. It was deeply negative at -158% in 2020, improving to -7.37% in 2021. The ROE turned positive in 2022 at 34.05%, surged to a peak of 58.69% in 2023, then decreased to 31.48% in 2024. This pattern corresponds closely with the net income trend and indicates an improved and then more variable profitability relative to equity.
Return on Assets (ROA)
Airbnb Inc., ROA 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) | ||||||
| Net income (loss) | 2,648) | 4,792) | 1,893) | (352) | (4,585) | |
| Total assets | 20,959) | 20,645) | 16,038) | 13,708) | 10,491) | |
| Profitability Ratio | ||||||
| ROA1 | 12.63% | 23.21% | 11.80% | -2.57% | -43.70% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Booking Holdings Inc. | 21.23% | 17.62% | 12.06% | 4.93% | 0.27% | |
| Chipotle Mexican Grill Inc. | 16.67% | 15.27% | 12.98% | 9.81% | 5.95% | |
| McDonald’s Corp. | 14.90% | 15.08% | 12.25% | 14.01% | 8.99% | |
| Starbucks Corp. | 12.00% | 14.01% | 11.73% | 13.38% | 3.16% | |
| ROA, Sector | ||||||
| Consumer Services | 15.27% | 16.52% | 12.08% | 10.22% | 1.24% | |
| ROA, Industry | ||||||
| Consumer Discretionary | 8.18% | 7.66% | 4.94% | 8.07% | 4.42% | |
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
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 2,648 ÷ 20,959 = 12.63%
2 Click competitor name to see calculations.
The financial data shows notable trends in profitability, asset growth, and return on assets (ROA) over the five-year period.
- Net Income (Loss)
- The net income exhibited a significant turnaround. In 2020, there was a substantial loss of $4,585 million, which drastically reduced to a loss of $352 million in 2021. By 2022, the company returned to profitability with a net income of $1,893 million, followed by a strong increase to $4,792 million in 2023. However, in 2024, net income declined to $2,648 million, indicating some degree of volatility or possibly higher expenses impacting earnings despite maintaining profitability.
- Total Assets
- Total assets increased consistently throughout the period. From $10,491 million in 2020, assets grew each year, reaching $20,959 million in 2024. This near doubling of asset base over five years suggests ongoing investment in resources or acquisitions, implying expansion or strengthening of the asset structure.
- Return on Assets (ROA)
- The ROA percentage mirrored the trend seen in net income, with a very negative ROA of -43.7% in 2020 reflecting heavy losses relative to assets. There was substantial improvement to -2.57% in 2021, followed by positive returns of 11.8% in 2022 and 23.21% in 2023, indicating increasing efficiency in generating earnings from assets. In 2024, ROA decreased to 12.63%, aligning with the reduction in net income and suggesting a moderation in asset utilization efficiency.