Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Airbnb Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Airbnb Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Airbnb Inc. operating profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Airbnb Inc. net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Airbnb Inc. ROE improved from 2021 to 2022 and from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Airbnb Inc. ROA improved from 2021 to 2022 and from 2022 to 2023. |
Gross Profit Margin
Airbnb Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Gross profit | 8,214) | 6,900) | 4,836) | 2,502) | |
| Revenue | 9,917) | 8,399) | 5,992) | 3,378) | |
| Profitability Ratio | |||||
| Gross profit margin1 | 82.83% | 82.15% | 80.71% | 74.07% | |
| Benchmarks | |||||
| Gross Profit Margin, Competitors2 | |||||
| Chipotle Mexican Grill Inc. | 26.20% | 23.88% | 22.62% | 17.40% | |
| McDonald’s Corp. | 57.12% | 56.97% | 54.17% | 50.77% | |
| Starbucks Corp. | 27.37% | 25.96% | 28.87% | 21.51% | |
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 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 8,214 ÷ 9,917 = 82.83%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Airbnb Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Operating Profit Margin
Airbnb Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | 1,518) | 1,802) | 429) | (3,590) | |
| Revenue | 9,917) | 8,399) | 5,992) | 3,378) | |
| Profitability Ratio | |||||
| Operating profit margin1 | 15.31% | 21.45% | 7.17% | -106.27% | |
| Benchmarks | |||||
| Operating Profit Margin, Competitors2 | |||||
| Booking Holdings Inc. | 27.31% | 29.85% | 22.78% | -9.28% | |
| Chipotle Mexican Grill Inc. | 15.78% | 13.44% | 10.67% | 4.85% | |
| McDonald’s Corp. | 45.68% | 40.42% | 44.59% | 38.13% | |
| Starbucks Corp. | 16.32% | 14.32% | 16.77% | 6.64% | |
| Operating Profit Margin, Sector | |||||
| Consumer Services | 25.75% | 24.62% | 24.69% | 8.41% | |
| Operating Profit Margin, Industry | |||||
| Consumer Discretionary | 9.12% | 8.47% | 8.79% | 6.48% | |
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 2023 Calculation
Operating profit margin = 100 × Income (loss) from operations ÷ Revenue
= 100 × 1,518 ÷ 9,917 = 15.31%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Airbnb Inc. operating profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Net Profit Margin
Airbnb Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income (loss) | 4,792) | 1,893) | (352) | (4,585) | |
| Revenue | 9,917) | 8,399) | 5,992) | 3,378) | |
| Profitability Ratio | |||||
| Net profit margin1 | 48.32% | 22.54% | -5.88% | -135.71% | |
| Benchmarks | |||||
| Net Profit Margin, Competitors2 | |||||
| Booking Holdings Inc. | 20.07% | 17.89% | 10.63% | 0.87% | |
| Chipotle Mexican Grill Inc. | 12.45% | 10.41% | 8.65% | 5.94% | |
| McDonald’s Corp. | 33.22% | 26.65% | 32.49% | 24.63% | |
| Starbucks Corp. | 11.46% | 10.18% | 14.45% | 3.95% | |
| Net Profit Margin, Sector | |||||
| Consumer Services | 22.32% | 17.09% | 17.21% | 2.53% | |
| Net Profit Margin, Industry | |||||
| Consumer Discretionary | 7.92% | 5.15% | 9.20% | 5.24% | |
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 2023 Calculation
Net profit margin = 100 × Net income (loss) ÷ Revenue
= 100 × 4,792 ÷ 9,917 = 48.32%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Airbnb Inc. net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Return on Equity (ROE)
Airbnb Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income (loss) | 4,792) | 1,893) | (352) | (4,585) | |
| Stockholders’ equity | 8,165) | 5,560) | 4,776) | 2,902) | |
| Profitability Ratio | |||||
| ROE1 | 58.69% | 34.05% | -7.37% | -158.00% | |
| Benchmarks | |||||
| ROE, Competitors2 | |||||
| Booking Holdings Inc. | — | 109.92% | 18.86% | 1.21% | |
| Chipotle Mexican Grill Inc. | 40.13% | 37.97% | 28.42% | 17.61% | |
| McDonald’s Corp. | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | |
| ROE, Sector | |||||
| Consumer Services | — | — | 396.84% | — | |
| ROE, Industry | |||||
| Consumer Discretionary | 30.61% | 21.65% | 34.37% | 25.29% | |
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 2023 Calculation
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 4,792 ÷ 8,165 = 58.69%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Airbnb Inc. ROE improved from 2021 to 2022 and from 2022 to 2023. |
Return on Assets (ROA)
Airbnb Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||
| ROA, Competitors2 | |||||
| Booking Holdings Inc. | 17.62% | 12.06% | 4.93% | 0.27% | |
| Chipotle Mexican Grill Inc. | 15.27% | 12.98% | 9.81% | 5.95% | |
| McDonald’s Corp. | 15.08% | 12.25% | 14.01% | 8.99% | |
| Starbucks Corp. | 14.01% | 11.73% | 13.38% | 3.16% | |
| ROA, Sector | |||||
| Consumer Services | 16.52% | 12.08% | 10.22% | 1.24% | |
| ROA, Industry | |||||
| Consumer Discretionary | 7.66% | 4.94% | 8.07% | 4.42% | |
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 2023 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 4,792 ÷ 20,645 = 23.21%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Airbnb Inc. ROA improved from 2021 to 2022 and from 2022 to 2023. |