Stock Analysis on Net
Stock Analysis on Net

Airbnb Inc. (NASDAQ:ABNB)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Airbnb Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2024 31.48% = 12.63% × 2.49
Sep 30, 2024 21.65% = 8.29% × 2.61
Jun 30, 2024 60.53% = 18.40% × 3.29
Mar 31, 2024 62.55% = 20.13% × 3.11
Dec 31, 2023 58.69% = 23.21% × 2.53
Sep 30, 2023 59.85% = 25.47% × 2.35
Jun 30, 2023 45.46% = 10.85% × 4.19
Mar 31, 2023 38.34% = 10.13% × 3.78
Dec 31, 2022 34.05% = 11.80% × 2.88
Sep 30, 2022 29.40% = 10.13% × 2.90
Jun 30, 2022 23.80% = 6.55% × 3.63
Mar 31, 2022 16.92% = 4.70% × 3.60
Dec 31, 2021 -7.37% = -2.57% × 2.87
Sep 30, 2021 — = — × 3.05
Jun 30, 2021 — = — × 4.56
Mar 31, 2021 — = — × 3.91

Based on: 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Airbnb Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2024 31.48% = 23.85% × 0.53 × 2.49
Sep 30, 2024 21.65% = 16.96% × 0.49 × 2.61
Jun 30, 2024 60.53% = 46.11% × 0.40 × 3.29
Mar 31, 2024 62.55% = 48.23% × 0.42 × 3.11
Dec 31, 2023 58.69% = 48.32% × 0.48 × 2.53
Sep 30, 2023 59.85% = 56.87% × 0.45 × 2.35
Jun 30, 2023 45.46% = 25.31% × 0.43 × 4.19
Mar 31, 2023 38.34% = 23.30% × 0.44 × 3.78
Dec 31, 2022 34.05% = 22.54% × 0.52 × 2.88
Sep 30, 2022 29.40% = 20.29% × 0.50 × 2.90
Jun 30, 2022 23.80% = 16.91% × 0.39 × 3.63
Mar 31, 2022 16.92% = 12.12% × 0.39 × 3.60
Dec 31, 2021 -7.37% = -5.88% × 0.44 × 2.87
Sep 30, 2021 — = — × — × 3.05
Jun 30, 2021 — = — × — × 4.56
Mar 31, 2021 — = — × — × 3.91

Based on: 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Airbnb Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2024 12.63% = 23.85% × 0.53
Sep 30, 2024 8.29% = 16.96% × 0.49
Jun 30, 2024 18.40% = 46.11% × 0.40
Mar 31, 2024 20.13% = 48.23% × 0.42
Dec 31, 2023 23.21% = 48.32% × 0.48
Sep 30, 2023 25.47% = 56.87% × 0.45
Jun 30, 2023 10.85% = 25.31% × 0.43
Mar 31, 2023 10.13% = 23.30% × 0.44
Dec 31, 2022 11.80% = 22.54% × 0.52
Sep 30, 2022 10.13% = 20.29% × 0.50
Jun 30, 2022 6.55% = 16.91% × 0.39
Mar 31, 2022 4.70% = 12.12% × 0.39
Dec 31, 2021 -2.57% = -5.88% × 0.44
Sep 30, 2021 — = — × —
Jun 30, 2021 — = — × —
Mar 31, 2021 — = — × —

Based on: 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2024 is the increase in profitability measured by net profit margin ratio.