Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2020
- Price to Earnings (P/E) since 2020
- Price to Operating Profit (P/OP) since 2020
- Price to Book Value (P/BV) since 2020
- Analysis of Debt
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Short-term Activity Ratios (Summary)
Airbnb Inc., short-term (operating) 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).
The financial ratios reveal notable trends in the company's operational efficiency over the reported periods.
- Receivables Turnover
- The receivables turnover ratio demonstrates an overall upward trajectory, rising from 34.05 in 2020 to a peak of 75.52 in 2024. This indicates an improving efficiency in collecting receivables, with a brief dip from 53.67 in 2021 to 48.38 in 2023 before sharply increasing again.
- Average Receivable Collection Period
- This complements the receivables turnover trend, with the average collection period decreasing from 11 days in 2020 to only 5 days in 2024. The collection period remains relatively stable between 7-8 days during 2021 to 2023, then improves significantly in the latest year, reflecting faster cash inflows.
- Payables Turnover
- The payables turnover ratio exhibits a steady increase from 10.96 in 2020 to 13.23 in 2024, suggesting that the company is paying its suppliers more rapidly over time. There is a minor fluctuation with a slight decline in 2021, but the overall trend points to accelerating payments.
- Average Payables Payment Period
- Supporting the payables turnover increase, the average payment period shortens from 33 days in 2020 to 28 days in 2024, implying the company settles obligations faster, which could influence supplier relationships and cash management.
- Working Capital Turnover
- The working capital turnover ratio shows a consistent improvement from 0.89 in 2020 to 1.58 in 2024. This indicates growing efficiency in utilizing working capital to generate revenue, with a steady acceleration from 2021 onwards.
Overall, the data reflects enhanced operational efficiency with respect to receivables and payables management, as well as improved utilization of working capital. The company has accelerated collections and payments while increasing turnover rates, which may positively impact liquidity and operational performance.
Turnover Ratios
Average No. Days
Receivables Turnover
Airbnb Inc., receivables 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 | ||||||
| Customer receivables, net of reserve | ||||||
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | ||||||
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Receivables Turnover, Sector | ||||||
| Consumer Services | ||||||
| Receivables Turnover, Industry | ||||||
| Consumer Discretionary | ||||||
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
Receivables turnover = Revenue ÷ Customer receivables, net of reserve
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue exhibits a consistent upward trajectory over the five-year period. Starting from $3,378 million at the end of 2020, revenue increased substantially to $5,992 million in 2021, representing significant growth. This positive trend continued in 2022 with revenue reaching $8,399 million, followed by further increases in 2023 and 2024, culminating in $9,917 million and $11,102 million respectively. This demonstrates a strong and steady growth pattern in revenue generation over the analyzed years.
- Customer Receivables, Net of Reserve
- Customer receivables also display an overall ascending trend from $99 million in 2020 to $205 million in 2023, implying an increase in outstanding amounts owed by customers. However, in 2024, the value decreased to $147 million, indicating a reduction in receivables. This decline could reflect improved collection efforts or changes in credit policies. Despite the decrease in 2024, the general trend until 2023 was upward, tracking the expanding business volume associated with increasing revenues.
- Receivables Turnover Ratio
- The receivables turnover ratio shows variability over the period. It increased markedly from 34.05 in 2020 to 53.67 in 2021, indicating faster collection of receivables relative to sales. The ratio then slightly declined to 52.17 in 2022 and further to 48.38 in 2023, suggesting a modest slowdown in collections relative to the rising base of receivables and revenue. In 2024, the ratio surged sharply to 75.52, indicating significantly improved efficiency in collecting receivables compared to previous years. This high turnover ratio in 2024 could explain the reduction in customer receivables noted for that year.
- Summary of Insights
- Over the period analyzed, the company sustained robust revenue growth accompanied by rising customer receivables until 2023. The receivables turnover ratio generally improved, particularly in the early years and then significantly in 2024, suggesting enhanced collection efficiency that year. The interplay between these metrics indicates effective management of credit and collections processes despite increasing sales. The reduction in customer receivables in 2024, alongside the peak receivables turnover ratio, points toward optimized cash flow management in the most recent period.
Payables Turnover
Airbnb Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenue | ||||||
| Accounts payable | ||||||
| Short-term Activity Ratio | ||||||
| Payables turnover1 | ||||||
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Payables Turnover, Sector | ||||||
| Consumer Services | ||||||
| Payables Turnover, Industry | ||||||
| Consumer Discretionary | ||||||
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
Payables turnover = Cost of revenue ÷ Accounts payable
= ÷ =
2 Click competitor name to see calculations.
- Cost of Revenue
- The cost of revenue shows a consistent increasing trend over the five-year period. Starting from 876 million USD in 2020, it rose to 1156 million in 2021, followed by 1499 million in 2022. The upward trajectory continued with 1703 million in 2023 and reached 1878 million in 2024. This steady rise indicates increased expenses related to the production of goods and services, which could be reflective of business growth or inflationary pressures.
- Accounts Payable
- Accounts payable also exhibited an increasing trend but at a much slower pace compared to the cost of revenue. It started at 80 million USD in 2020, progressing to 118 million in 2021 and 137 million in 2022. The values then slightly increased to 141 million in 2023 and 142 million in 2024. This slower growth may suggest improved payment terms or more efficient management of short-term liabilities.
- Payables Turnover Ratio
- The payables turnover ratio demonstrated a fluctuating yet overall upward movement. It decreased from 10.96 times in 2020 to 9.77 times in 2021, indicating slower payment cycles during that period. However, it then rebounded significantly to 10.94 times in 2022, followed by further increases to 12.08 times in 2023 and 13.23 times in 2024. This rising ratio suggests enhanced efficiency in settling payables, possibly reflecting stronger liquidity or stricter payment policies over time.
Working Capital Turnover
Airbnb Inc., working capital 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) | ||||||
| Current assets | ||||||
| Less: Current liabilities | ||||||
| Working capital | ||||||
| Revenue | ||||||
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | ||||||
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Working Capital Turnover, Sector | ||||||
| Consumer Services | ||||||
| Working Capital Turnover, Industry | ||||||
| Consumer Discretionary | ||||||
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
Working capital turnover = Revenue ÷ Working capital
= ÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital shows an overall increasing trend from 2020 through 2024. Starting at $3,777 million in 2020, it rises significantly to $6,027 million in 2021, then continues to grow albeit at a slower pace, reaching $7,019 million by 2024. A slight decline is noted in 2023, where working capital decreases from $6,883 million in 2022 to $6,559 million, before increasing again the following year.
- Revenue
- Revenue demonstrates consistent and substantial growth across the analyzed periods. The revenue more than doubled from $3,378 million in 2020 to $5,992 million in 2021, followed by continued increases reaching $11,102 million by 2024. The growth appears steady each year without any downturns, indicating strong sales performance.
- Working Capital Turnover
- The working capital turnover ratio exhibits a clear upward trajectory, rising from 0.89 in 2020 to 1.58 in 2024. This increase suggests improved efficiency in using working capital to generate revenue. The ratio moves upwards more sharply after 2021, indicating that revenue growth is outpacing the growth in working capital over the years.
- Summary Insights
- The data reveals a company expanding its revenue base significantly while managing its working capital with increasing efficiency. Although working capital increases in absolute terms, the sharper growth in revenue and the rising turnover ratio indicate more effective utilization of working capital to generate sales. The slight dip in working capital in 2023 did not affect the rising trend in revenue or turnover ratio, implying operational stability and improved asset management during that year.
Average Receivable Collection Period
Airbnb Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | ||||||
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | ||||||
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Average Receivable Collection Period, Sector | ||||||
| Consumer Services | ||||||
| Average Receivable Collection Period, Industry | ||||||
| Consumer Discretionary | ||||||
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio exhibits variability over the analyzed period, beginning at 34.05 in 2020 and increasing significantly to 53.67 in 2021. In the subsequent years, the ratio experienced a slight decline to 52.17 in 2022 and 48.38 in 2023, before rising sharply to 75.52 in 2024. This overall upward trend, with some interim decreases, suggests an improvement in the efficiency of collecting receivables, culminating in a notably higher turnover in 2024.
- Average Receivable Collection Period
- The average receivable collection period inversely mirrors the trend observed in the receivables turnover ratio, starting at 11 days in 2020 and decreasing to 7 days in both 2021 and 2022. There was a slight increase to 8 days in 2023, followed by a further reduction to 5 days in 2024. The general pattern indicates a shortening of the collection period over time, reflecting enhanced liquidity and quicker conversion of receivables into cash.
- Summary of Trends
- Overall, the data reveal an improvement in the management of receivables between 2020 and 2024. The increasing receivables turnover coupled with the decreasing average collection period points to more efficient credit and collection policies. The year 2024 is particularly notable for achieving the highest turnover ratio and the shortest collection period within the five-year span, signaling strengthened operational efficiency in receivables management.
Average Payables Payment Period
Airbnb Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | ||||||
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | ||||||
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Average Payables Payment Period, Sector | ||||||
| Consumer Services | ||||||
| Average Payables Payment Period, Industry | ||||||
| Consumer Discretionary | ||||||
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio exhibits a variation across the five-year period. It initially decreases from 10.96 in 2020 to 9.77 in 2021, indicating a slower rate of payment to suppliers during that year. Subsequently, the ratio increases gradually, reaching 10.94 in 2022, 12.08 in 2023, and further rising to 13.23 in 2024. This upward trend after 2021 suggests an improving efficiency in settling payables, with the company paying off its obligations more quickly over time.
- Average Payables Payment Period
- The average payables payment period, measured in number of days, shows an inverse pattern relative to the payables turnover ratio. It climbs from 33 days in 2020 to 37 days in 2021, implying a longer duration taken to pay suppliers in 2021. From 2022 onwards, the payment period steadily decreases to 33 days, then 30 days, and finally 28 days in 2024. This declining trend aligns with the increasing payables turnover ratio and confirms that the company has been accelerating its payment cycles in recent years.
- Overall Analysis
- The data indicates that after a temporary deceleration in payables payments during 2021, the company has consistently improved its payables management efficiency through to 2024. The concurrent increase in payables turnover and decrease in payment period highlight a strategic shift towards faster settlement of payables. This improvement could be reflective of enhanced liquidity management or favorable negotiating terms with suppliers.