Stock Analysis on Net

Airbnb Inc. (NASDAQ:ABNB)

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Airbnb Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,644 1,681 2,070 465 (4,675)
Invested capital2 6,117 5,829 6,849 5,836 4,764
Performance Ratio
ROIC3 43.22% 28.83% 30.22% 7.96% -98.14%
Benchmarks
ROIC, Competitors4
Booking Holdings Inc. 47.41% 32.92% 21.73% 4.47% 4.60%
Chipotle Mexican Grill Inc. 24.99% 23.36% 19.01% 14.35% 12.43%
McDonald’s Corp. 18.55% 18.51% 15.69% 17.77% 13.16%
Starbucks Corp. 18.74% 20.76% 18.24% 19.53% 6.42%

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 NOPAT. See details »

2 Invested capital. See details »

3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,644 ÷ 6,117 = 43.22%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Airbnb Inc. ROIC deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Decomposition of ROIC

Airbnb Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2024 43.22% = 24.19% × 1.85 × 96.78%
Dec 31, 2023 28.83% = 17.09% × 1.74 × 96.79%
Dec 31, 2022 30.22% = 24.64% × 1.27 × 96.81%
Dec 31, 2021 7.96% = 9.31% × 1.11 × 76.96%
Dec 31, 2020 -98.14% = -151.42% × 0.65 × 100.00%

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 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2024 year is the increase in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Airbnb Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,644 1,681 2,070 465 (4,675)
Add: Cash operating taxes2 88 56 68 139 (36)
Net operating profit before taxes (NOPBT) 2,732 1,737 2,138 604 (4,711)
 
Revenue 11,102 9,917 8,399 5,992 3,378
Add: Increase (decrease) in unearned fees 189 245 278 496 (267)
Adjusted revenue 11,291 10,162 8,677 6,488 3,111
Profitability Ratio
OPM3 24.19% 17.09% 24.64% 9.31% -151.42%
Benchmarks
OPM, Competitors4
Booking Holdings Inc. 31.62% 25.31% 24.15% 13.04% 15.18%
Chipotle Mexican Grill Inc. 20.10% 18.74% 16.00% 13.23% 8.03%
McDonald’s Corp. 47.55% 48.59% 40.79% 46.68% 41.21%
Starbucks Corp. 16.12% 17.05% 14.97% 20.82% 7.99%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2024 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenue
= 100 × 2,732 ÷ 11,291 = 24.19%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Airbnb Inc. OPM deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Turnover of Capital (TO)

Airbnb Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Revenue 11,102 9,917 8,399 5,992 3,378
Add: Increase (decrease) in unearned fees 189 245 278 496 (267)
Adjusted revenue 11,291 10,162 8,677 6,488 3,111
 
Invested capital1 6,117 5,829 6,849 5,836 4,764
Efficiency Ratio
TO2 1.85 1.74 1.27 1.11 0.65
Benchmarks
TO, Competitors3
Booking Holdings Inc. 1.83 1.87 1.25 0.73 0.47
Chipotle Mexican Grill Inc. 1.66 1.65 1.61 1.38 1.22
McDonald’s Corp. 0.52 0.51 0.51 0.49 0.41
Starbucks Corp. 1.54 1.62 1.57 1.23 1.03

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 Invested capital. See details »

2 2024 Calculation
TO = Adjusted revenue ÷ Invested capital
= 11,291 ÷ 6,117 = 1.85

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Airbnb Inc. TO improved from 2022 to 2023 and from 2023 to 2024.

Effective Cash Tax Rate (CTR)

Airbnb Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,644 1,681 2,070 465 (4,675)
Add: Cash operating taxes2 88 56 68 139 (36)
Net operating profit before taxes (NOPBT) 2,732 1,737 2,138 604 (4,711)
Tax Rate
CTR3 3.22% 3.21% 3.19% 23.04%
Benchmarks
CTR, Competitors4
Booking Holdings Inc. 18.05% 30.52% 28.16% 53.06% 35.06%
Chipotle Mexican Grill Inc. 25.18% 24.38% 25.95% 21.28% -27.06%
McDonald’s Corp. 25.26% 25.22% 24.66% 21.80% 22.33%
Starbucks Corp. 24.26% 24.73% 22.36% 23.58% 21.57%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 88 ÷ 2,732 = 3.22%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Airbnb Inc. CTR increased from 2022 to 2023 and from 2023 to 2024.