INSTRUCTIONS:
Company name – Airbnbfinancial Analysis from the year 2017 to 2021Goal -Using your specific company chosen for the class portfolio, develop a set offinancial ratios and provide an opinion on the financial health of the company.Highlight the major financial components of the entity and explain and/ oranalyse areas that you believe it is performing well, if at all, and yourinterpretation/ 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 considerthe 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 scoreadditional marks. While not required, you may introduce assumptions if the information within the published financials is incomplete. The assumptions made should be identifiedand included in the written submission. Grading of the assignment will considerthe plausibility, detail and basis of the assumptions.• The appendix may include a new set of financialstatements based on yourassumptions• Formatting will be considered, including a title page, executive summary, consistencyin font, standard currency format (eg., $1,000 and not 1,000$), correct tablealignment/ 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=excludepaper headers: _1) executive summary – what will be included in the paper, what is the company about, how is the company performing right now, overview of the financials of the company2) analysis3) Trendline4) competitor5) industry benchmarks – comparing Airbnbs performace against other competitors6) industry metrics7) tables8) pie charts including market share9) conclusion10) appendix with support set of financial statements – just provide link to financial statements where the data is coming fromRatio summaryCurrent Ratio = Current Assets/ Current LiabilitiesQuick Ratio = (Current Assets – Inventory – Prepaid Expenses)/ Current LiabilitiesCredit Card Receivables Turnover = Credit Card Revenue/ Credit Card ReceivablesAverage Credit Cards Collection Period = Days in the Period/ Credit Card TurnoverA/R Turnover = A/R Credit Revenue/ A/RA/R Collection Period = Days in the Period/ A/R TurnoverNet Return on Assets = Net Income After Tax/ Total AssetsReturn on Equity = Net Income After Tax/ Shareholders’ EquityInventory Turnover Ratio = COS/ InventoryInventory Holding Period = Operating Days in the Period/ Inventory Turnover RatioCash Conversion Cycle = 365/ Inventory Turnover + 365/ A/R Turnover – 365/ A/P TurnoverDebt/ Equity = Long-Term Debt/ Shareholders’ EquityInterest Coverage Ratio = Earnings Before Interest and Taxes/ Interest ExpenseEPS = (Net Income – Preferred Dividends)/ Weighted Average Number of Common Shares Outstanding