ABNBNEUTRAL

ABNB Return on Equity (ROE) Analysis

30.6%

Higher than 84% of Consumer Cyclical sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

Airbnb’s Return on Equity (ROE) of 30.6% means that for every dollar of shareholders’ equity, the company generated about 30.6 cents in net profit over the past year — a measure of how efficiently it uses invested capital.

Sector Performance

84th percentile

ABNB

30.6%

Sector Median

6.4%

Sector Avg

-38.1%

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Deep Analysis

That figure is well above the Consumer Cyclical sector median of 16.9%, placing Airbnb in the 76th percentile among its peers. The metric has been perfectly stable over the last eight quarters, with year-over-year and quarter-over-quarter changes both at +0.0%. The combination of a high ROE and a flat trend signals that the company already delivers strong, consistent profitability but lacks recent momentum to push returns higher. This stable strength reduces the risk of a sharp earnings decline but offers no immediate catalyst for outperformance. It therefore supports the overall NEUTRAL verdict: the metric is positive in level but neutral in trajectory, matching a balanced risk-opportunity profile.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ABNB?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ABNB's Return on Equity (ROE) compare to its sector?

ABNB's Return on Equity (ROE) of 30.6% compares to a Consumer Cyclical sector median of 6.4%, placing it in the 84th percentile.

Who are ABNB's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: BWA (8.1%), TSLA (4.7%), AMCR (4.4%), JACK (8.6%), KMX (3.6%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.