Airbnb Inc. (NASDAQ:ABNB)

Receivables Turnover

The receivables turnover ratio exhibits notable fluctuations over the observed periods. Starting from a level around 53.67 in March 2021, the ratio declined to a low near 41.69 in September 2023. Subsequently, it experienced a marked increase, reaching a peak of 75.52 by March 2025 before settling somewhat lower at 64.55 in the most recent quarter. This indicates variability in the efficiency of the company's collection of receivables, with periods of slower turnover followed by significant improvements.

Working Capital Turnover

The working capital turnover ratio shows a consistent upward trend across the time frame. It started under 1 in early 2021, then increased steadily, crossing 1.0 in the mid-2021 period and continuing to rise to 2.46 by March 2025. This trend suggests progressive improvement in the company's ability to generate sales relative to its working capital, reflecting potentially more efficient use of resources or increased sales volume relative to working capital.

Average Receivable Collection Period

The average receivable collection period remains relatively stable with minor oscillations. It ranged mostly between 5 to 9 days, with an initial period of roughly 7 days. There is a slight increase to 9 days in late 2023, followed by a decrease to around 5 to 6 days in 2024 and early 2025. This stability and slight improvement in collection days suggest consistent collection practices and potentially faster receipt of cash from customers towards the end of the period under review.

The revenue data reveals a seasonal pattern, with peaks frequently occurring in the third quarter of each year and the lowest points often appearing in the first quarter. From March 31, 2021, to March 31, 2025, overall revenue fluctuates significantly, with substantial growth periods visible particularly from 2023 to 2024. For example, revenue increased from 1818 million in March 2023 to 3397 million by September 2023, indicating a strong upward trend within that year. However, following some peak quarters, there is a notable decline, such as from the peak of 3397 million in September 2023 to 2218 million by December 2023. The trend suggests cyclical influences likely tied to seasonal demand or business cycles.

Customer receivables generally display an increasing trend over the analyzed period but with less drastic fluctuations compared to revenue. There is an increase from 96 million in March 2021 to a peak of 218 million in June 2023, followed by some decline and stabilization around the 175 to 206 million range by late 2024 and early 2025. This indicates the company manages a growing amount of receivables in relation to its revenue, which could reflect changes in credit policies, customer payment behavior, or billing cycles.

The receivables turnover ratio, available from March 2022 onward, demonstrates variability with notable highs and lows. The ratio starts around 53.67 and experiences decline toward 41.69 in September 2022, then rises again to a peak of 75.52 by December 2024 before slightly decreasing to 64.55 in March 2025. Higher turnover ratios generally imply faster collection of receivables. The increase in turnover ratios towards the end of the period suggests improved efficiency in collecting customer receivables, despite fluctuations in both revenue and receivables outstanding.

Revenue Insights

Exhibits strong seasonal variation with third-quarter peaks and first-quarter troughs.

Demonstrates significant growth phases interspersed with sharp declines post-peak quarters.

Year-over-year increases in late 2023 and 2024 indicate robust market demand during these periods.

Customer Receivables

Generally rises over time, albeit more gradually than revenue.

Peaks mid-2023, followed by stabilization, suggesting controlled credit risk management.

Receivables Turnover Ratio

Varies significantly, indicating fluctuations in collection efficiency.

Trend upwards toward late 2024 reflects improved receivables collection and cash flow management.

Working Capital

Working capital demonstrated an overall increasing trend from March 31, 2021, reaching a peak around December 31, 2024, before declining substantially by March 31, 2025. Initially, there was steady growth from 4,353 million USD to a high of approximately 7,019 million USD, reflecting expansion or enhanced liquidity management. However, a notable reduction to 4,565 million USD at the end of the observed periods suggests a significant change in short-term asset or liability management strategies or external factors affecting current assets or obligations.

Revenue

Revenue exhibited a generally upward trajectory with some volatility. It rose sharply from 887 million USD in March 2021 to a peak of 3,732 million USD in September 2024, indicating strong sales growth and demand expansion over the observed period. Nonetheless, there were periodic declines, notably after peak quarters such as December 2021 and December 2023. The fluctuations imply seasonal or market-driven influences on revenue generation, although the long-term pattern is significantly positive.

Working Capital Turnover Ratio

The working capital turnover ratio showed a consistent increase from 0.99 recorded in December 2021 to a high of 2.46 by March 2025. This rising ratio indicates improved efficiency in utilizing working capital to generate revenue over time. The acceleration in turnover suggests enhancements in operational performance, asset management, or reductions in working capital relative to revenue growth, contributing to more effective capital use.

Summary

Overall, the data reflects a firm experiencing growth in both revenue and working capital over the long term, with efficiency in working capital management improving markedly. The notable late-period drop in working capital combined with the peak turnover ratio in March 2025 may reflect strategic shifts or external pressures impacting liquidity and capital structure. Revenue growth supports positive business momentum, notwithstanding periodic fluctuations possibly tied to seasonal factors or economic conditions.

The data presents the receivables turnover ratio and the average receivable collection period for multiple quarters, from March 31, 2021, through March 31, 2025. Analysis focuses on the available data starting from March 31, 2022.

Receivables Turnover Ratio

Beginning in the first quarter of 2022, the receivables turnover ratio starts at 53.67 and remains relatively stable through the year, fluctuating between approximately 43.3 and 53.74. There is a noticeable dip to 41.69 in the third quarter of 2023, which indicates a slower turnover of receivables during that time. However, from the fourth quarter of 2023 onward, a generally increasing trend is observed, reaching a peak of 75.52 in the fourth quarter of 2024 before slightly declining to 64.55 in the first quarter of 2025. This upward trend suggests improving efficiency in collecting receivables over the latter periods.

Average Receivable Collection Period (Days)

This metric inversely reflects the turnover ratio and remains relatively low and stable across the periods. Starting at 7 days in early 2022, it oscillates from 7 to 9 days between 2022 and 2023, indicating a consistent average time to collect receivables. From the first quarter of 2024, the collection period shortens progressively from 8 days to a low of 5 days in the fourth quarter of 2024, before slightly increasing to 6 days in the first quarter of 2025. This decreasing trend in days aligns with the increasing receivables turnover ratio, demonstrating enhanced collection speed and efficiency.

Overall, there is evidence of improved receivables management over the observed period, with faster collection times and a higher turnover ratio, particularly notable from 2023 onward. The period between the third quarter of 2023 and early 2024 may warrant further investigation due to the temporary decline in turnover efficiency.