Airbnb (WBO:ABNB) ROCE % : 56.34% (As of Sep. 2024)

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What is Airbnb ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Airbnb's annualized ROCE % for the quarter that ended in Sep. 2024 was 56.34%.

Airbnb ROCE % Historical Data

The historical data trend for Airbnb's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Airbnb ROCE % Chart

Airbnb Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-13.65

-103.45

2.24

26.93

23.01

Airbnb Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															62.76	6.06	3.84	19.13	56.34

Airbnb ROCE % Calculation

Airbnb's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	2003.645	/	( ( (15139.872 - 7531.232)	+	(18931.465 - 9124.15) )	/ 2 )
	=	2003.645	/	( (7608.64	+	9807.315)	/ 2 )
	=	2003.645	/	8707.9775
	=	23.01 %

Airbnb's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	5496.1	/	( ( (24451.28 - 14704.212)	+	(19976.972 - 10213.736) )	/ 2 )
	=	5496.1	/	( ( 9747.068	+	9763.236 )	/ 2 )
	=	5496.1	/	9755.152
	=	56.34 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Airbnb (WBO:ABNB) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Airbnb ROCE % Related Terms

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Airbnb Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Airbnb Inc (WBO:ABNB) » Definitions » ROCE %

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Address

888 Brannan Street, San Francisco, CA, USA, 94103

Website

https://www.airbnb.com

Started in 2008, Airbnb is the world's largest online alternative accommodation travel agency, also offering booking services for boutique hotels and experiences. Airbnb's platform offered over 8 million active accommodation listings as of Sept. 30, 2024. Listings from the company's over 5 million hosts are spread over almost every country in the world. In 2023, 50% of revenue was from the North American region. Transaction fees for online bookings account for all its revenue.