Airbnb Inc. (NASDAQ:ABNB)

Receivables Turnover

The receivables turnover ratio demonstrates a variable but generally upward trend over the analyzed periods. Initially, the ratio fluctuates between approximately 41.69 and 53.74 with noticeable dips around June 2022 and June 2023. From March 2024 onward, there is a marked and consistent increase, peaking at 75.52 by December 2024 before declining slightly yet remaining elevated compared to earlier periods. This suggests the company has increasingly improved its efficiency in collecting receivables, reducing the time accounts remain outstanding as it moves closer to 2025.

Working Capital Turnover

Working capital turnover shows a consistent upward trajectory throughout most of the periods. Starting around 1.10 in early 2022, the ratio increases steadily with minor fluctuations, reaching values around 1.64 in mid-2024. The ratio then surges significantly after this point, peaking at 2.65 in June 2025 before a slight decrease to 2.17 in September 2025. This overall rising trend indicates improving effective utilization of working capital to generate revenue over time, particularly in the latter stages of the timeline.

Average Receivable Collection Period

The average receivable collection period, measured in days, remains relatively stable with modest changes across the timeline. The number of days fluctuates mainly between 5 and 9 days, with minor increases in mid-2022 and mid-2023 indicating a slight slowing in collections during those times. However, from March 2024 onward, the period decreases slightly to around 5-6 days, reflecting faster collection cycles aligned with the increased receivables turnover. The stability in this metric coupled with improved turnover ratios suggests enhanced collection efficiency without significant changes in credit policy or customer payment behavior.

The analysis of the financial data over the reported quarterly periods reveals several notable trends in key financial metrics.

Revenue

The revenue figures exhibit a clear seasonality pattern, with peaks typically occurring in the third quarters of each year. The overall trend from 2022 through 2025 shows a steady increase in revenue, indicating growth in sales or service volume. Starting from approximately $1.5 billion in the first quarter of 2022, revenue reaches over $4 billion by the third quarter of 2025. Despite seasonal fluctuations, each successive year generally records higher revenue figures in corresponding quarters, pointing to a positive expansion trajectory.

Customer Receivables

Customer receivables show moderate fluctuations but without a clear trend of consistent growth or decline. Values range approximately between $120 million and $220 million throughout the timeline, with occasional peaks and troughs. The relatively stable receivables levels, despite growing revenue, may suggest efficient collection practices or favorable credit terms maintained with customers.

Receivables Turnover Ratio

The receivables turnover ratio demonstrates variability across the periods but reflects an overall strengthening in managing receivables. Early periods in 2022 show ratios in the 40s and low 50s range, whereas more recent quarters in 2024 and 2025 see increases to the 60s and occasionally mid-70s. A higher turnover ratio implies quicker collection of receivables relative to sales, which could positively impact cash flow and reduce credit risk. This improvement aligns with the company’s capacity to handle larger revenue volumes efficiently.

In summary, the company exhibits strong revenue growth with distinct seasonal variations, stable customer receivables relative to increasing sales, and a progressively improving receivables turnover ratio. These factors collectively suggest enhanced operational efficiency and effective credit management over the reported periods.

The analysis of the financial data over multiple quarters reveals distinct patterns in working capital, revenue, and the working capital turnover ratio.

Working Capital

The working capital exhibited fluctuations throughout the periods under review. Starting at 5988 million USD in March 2022, it rose steadily to a peak of 7702 million USD in September 2023. Following this peak, it experienced a decline down to 4364 million USD by June 2025, before slightly recovering to 5499 million USD in September 2025. This suggests variable liquidity management or changes in current assets and liabilities over these quarters.

Revenue

Revenue demonstrated a clear seasonal pattern with notable increases typically occurring in the third quarters of each year, peaking at 3397 million USD in September 2023 and reaching a high of 4095 million USD in September 2025. Between these peaks, revenue tended to decline in the subsequent quarters. Overall, the trend indicates growth in total revenue with some cyclicality likely linked to market demand or business seasonality.

Working Capital Turnover Ratio

The working capital turnover ratio showed a generally upward trend, beginning at 1.1 in March 2022 and increasing to 2.65 by June 2025. This ratio indicates improved efficiency in using working capital to generate revenue over time. Despite occasional dips, the progression suggests that the company has become more effective at converting its working capital base into sales, reflecting better operational efficiency or changes in working capital management policies.

Correlation and Insights

The data implies an inverse relationship between working capital levels and turnover ratio at certain points; for instance, peaks in working capital often coincided with lower turnover ratios, while troughs in working capital aligned with higher turnover ratios. This could indicate strategic adjustments in asset and liability management to maximize revenue generation efficiency. Additionally, the strong seasonal revenue pattern highlights the importance of timing in financial planning and operations.

The receivables turnover ratio exhibits fluctuations throughout the observed periods, indicating variations in the efficiency of collecting receivables over time. Initially, the ratio starts at a relatively high level, surpassing 50 in early 2022, then experiences a decline reaching lows around the low 40s by mid-2023. Following this trough, the turnover ratio demonstrates a strong upward trend, peaking notably at 75.52 by the end of 2024 before settling slightly lower but remaining elevated above the 60 mark into 2025. This suggests an improvement in the effectiveness of credit and collection policies in the later periods, resulting in more rapid turnover of receivables.

Correspondingly, the average receivable collection period, which measures the number of days required to collect receivables, shows an inverse pattern relative to the turnover ratio. The collection period initially hovers between 7 and 9 days in 2022 and mid-2023, reflecting a slightly extended time to collect payments. Starting from late 2023, the period shortens, reaching a low of 5 days at the end of 2024, which aligns with the peak in turnover ratio. Throughout 2024 and into 2025, the average collection days stabilize around 6 days, indicating consistently quicker collections than in the earlier periods.

Receivables Turnover Ratio

Demonstrates a fluctuating yet ultimately improving trend, with a low in mid-2023 and a significant increase thereafter, peaking at 75.52 in late 2024 and maintaining elevated levels above 60 into 2025.

Average Receivable Collection Period

Exhibits a corresponding decrease over time, moving from around 7-9 days in early periods down to 5-6 days in later periods, reflecting more rapid collection cycles.

Overall, the data indicates enhanced receivable management and collection effectiveness over the course of the observed timeframe, especially notable from late 2023 onward. These improvements may reflect operational adjustments, strengthened credit policies, or favorable market conditions leading to faster cash conversion cycles.