Stock Analysis on Net
Stock Analysis on Net

Airbnb Inc. (NASDAQ:ABNB)

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases

Airbnb Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 20,645 16,038 13,708 10,491
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — —
Total assets (adjusted) 20,645 16,038 13,708 10,491
Adjustment to Total Debt
Total debt (as reported) 1,991 1,987 1,983 1,826
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — — —
Add: Operating lease liabilities, current 61 59 63 57
Add: Operating lease liabilities, noncurrent 252 295 372 431
Total debt (adjusted) 2,304 2,341 2,418 2,313

Based on: 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, 2 Equal to total present value of future operating lease payments.

Airbnb Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Airbnb Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover1
Reported total asset turnover 0.48 0.52 0.44 0.32
Adjusted total asset turnover 0.48 0.52 0.44 0.32
Debt to Equity2
Reported debt to equity 0.24 0.36 0.42 0.63
Adjusted debt to equity 0.28 0.42 0.51 0.80
Return on Assets3 (ROA)
Reported ROA 23.21% 11.80% -2.57% -43.70%
Adjusted ROA 23.21% 11.80% -2.57% -43.70%

Based on: 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 See details »

2 See details »

3 See details »

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Airbnb Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Airbnb Inc. adjusted debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Airbnb Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Airbnb Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenue 9,917 8,399 5,992 3,378
Total assets 20,645 16,038 13,708 10,491
Activity Ratio
Total asset turnover1 0.48 0.52 0.44 0.32
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenue 9,917 8,399 5,992 3,378
Adjusted total assets 20,645 16,038 13,708 10,491
Activity Ratio
Adjusted total asset turnover2 0.48 0.52 0.44 0.32

Based on: 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).

2023 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 9,917 ÷ 20,645 = 0.48

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 9,917 ÷ 20,645 = 0.48

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Airbnb Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total debt 1,991 1,987 1,983 1,826
Stockholders’ equity 8,165 5,560 4,776 2,902
Solvency Ratio
Debt to equity1 0.24 0.36 0.42 0.63
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 2,304 2,341 2,418 2,313
Stockholders’ equity 8,165 5,560 4,776 2,902
Solvency Ratio
Adjusted debt to equity2 0.28 0.42 0.51 0.80

Based on: 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).

2023 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity
= 1,991 ÷ 8,165 = 0.24

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 2,304 ÷ 8,165 = 0.28

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Airbnb Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 4,792 1,893 (352) (4,585)
Total assets 20,645 16,038 13,708 10,491
Profitability Ratio
ROA1 23.21% 11.80% -2.57% -43.70%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income (loss) 4,792 1,893 (352) (4,585)
Adjusted total assets 20,645 16,038 13,708 10,491
Profitability Ratio
Adjusted ROA2 23.21% 11.80% -2.57% -43.70%

Based on: 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).

2023 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 4,792 ÷ 20,645 = 23.21%

2 Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × 4,792 ÷ 20,645 = 23.21%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Airbnb Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.