Company name Airbnb
financial Analysis from the year 2017 to 2021
Goal –
Using your specific company chosen for the class portfolio, develop a set of
financial ratios and provide an opinion on the financial health of the company.
Highlight the major financial components of the entity and explain and/ or
analyse areas that you believe it is performing well, if at all, and your
interpretation/ rationale. While not required, you may introduce assumptions if the information within the published financials is incomplete. The assumptions made should be identified and included in the written submission. Grading of the assignment will consider
the plausibility, detail and basis of the assumptions. Based on your analysis, highlight areas that you believe the entity may pursue in order to expand/ grow its operations. You may also consider areas that it may consider to minimize exposure to various risks. Grading will be based on the realism of your strategy. This is optional, though an opportunity to score
additional marks. While not required, you may introduce assumptions if the information within the published financials is incomplete. The assumptions made should be identified
and included in the written submission. Grading of the assignment will consider
the plausibility, detail and basis of the assumptions.
The appendix may include a new set of financial statements based on your
assumptions
Formatting will be considered, including a title page, executive summary, consistency
in font, standard currency format (eg., $1,000 and not 1,000$), correct table
alignment/ fit within pages, no abbreviations (except where previously defined,
proper references (eg., APA or Chicago style)
The paper should explain the financial health up to point. No extra data needed. The information should be relevant to the company.
The financial statements and annual reports and other documents for aibnb could be found on https://www.sec.gov/edgar/browse/?CIK=1559720&owner=exclude
paper headers: _
1) executive summary what will be included in the paper, what is the company about, how is the company performing right now, an overview of the financials of the company and why is it good or bad to invest right now
2) analysis
3) Trendlines during the financial period
4) competitor
5) industry benchmarks comparing Airbnbs performance against other competitors
6) industry metrics
7) tables
8) pie charts including market share
9) conclusion
10) appendix with supporting set of financial statements just provide a link to financial statements where the data is coming from
Ratio summary
Current Ratio = Current Assets/ Current Liabilities
Quick Ratio = (Current Assets Inventory Prepaid Expenses)/ Current Liabilities
Credit Card Receivables Turnover = Credit Card Revenue/ Credit Card Receivables
Average Credit Cards Collection Period = Days in the Period/ Credit Card Turnover
A/R Turnover = A/R Credit Revenue/ A/R
A/R Collection Period = Days in the Period/ A/R Turnover
Net Return on Assets = Net Income After Tax/ Total Assets
Return on Equity = Net Income After Tax/ Shareholders Equity
Inventory Turnover Ratio = COS/ Inventory
Inventory Holding Period = Operating Days in the Period/ Inventory Turnover Ratio
Cash Conversion Cycle = 365/ Inventory Turnover + 365/ A/R Turnover 365/ A/P Turnover
Debt/ Equity = Long-Term Debt/ Shareholders Equity
Interest Coverage Ratio = Earnings Before Interest and Taxes/ Interest Expense
EPS = (Net Income Preferred Dividends)/ Weighted Average Number of Common Shares Outstanding
