Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Booking Holdings Inc. (NASDAQ:BKNG)

Analysis of Operating Leases

Advanced level

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Booking Holdings Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Total undiscounted future operating lease payments 643  757  588  466 
Discount rate1 2.57% 2.59% 2.95% 2.82%
 
Total present value of future operating lease payments 593  687  527  422 

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-17).

1 Weighted-average interest rate for Booking Holdings Inc.’s debt

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.57%
2019 163  2019 163  159 
2020 140  2020 140  133 
2021 108  2021 108  100 
2022 64  2022 64  58 
2023 50  2023 50  44 
2024 and thereafter 118  2024 50  43 
2025 50  42 
2026 18  15 
Total: 643  643  593 

Based on: 10-K (filing date: 2019-02-27).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.59%
2018 150  2018 150  146 
2019 141  2019 141  134 
2020 117  2020 117  109 
2021 87  2021 87  78 
2022 55  2022 55  48 
2023 and thereafter 208  2023 55  47 
2024 55  46 
2025 55  45 
2026 43  35 
Total: 757  757  687 

Based on: 10-K (filing date: 2018-02-27).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.95%
2017 104  2017 104  101 
2018 104  2018 104  98 
2019 93  2019 93  85 
2020 79  2020 79  71 
2021 57  2021 57  50 
2022 and thereafter 151  2022 57  48 
2023 57  47 
2024 36  28 
Total: 588  588  527 

Based on: 10-K (filing date: 2017-02-27).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.82%
2016 93  2016 93  90 
2017 80  2017 80  76 
2018 72  2018 72  66 
2019 61  2019 61  55 
2020 53  2020 53  46 
2021 and thereafter 107  2021 53  45 
2022 53  44 
2023
Total: 466  466  422 

Based on: 10-K (filing date: 2016-02-17).


Adjustments to Financial Statements for Operating Leases

Booking Holdings Inc., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 21,402  22,687  25,451  19,839  17,421 
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 —  593  687  527  422 
Total assets (adjusted) 21,402  23,280  26,138  20,366  17,842 
Adjustment to Total Debt
Total debt (as reported) 8,628  8,649  9,521  7,138  6,158 
Add: Operating lease liability (before adoption of FASB Topic 842)2 —  593  687  527  422 
Add: Current operating lease liabilities (classified in Accrued expenses and other current liabilities) 161  —  —  —  — 
Add: Non-current operating lease liabilities 462  —  —  —  — 
Total debt (adjusted) 9,251  9,242  10,208  7,666  6,580 

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-17).

1, 2 Equal to total present value of future operating lease payments.


Booking Holdings Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Booking Holdings Inc., adjusted financial ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Total Asset Turnover1
Reported total asset turnover 0.70 0.64 0.50 0.54 0.53
Adjusted total asset turnover 0.70 0.62 0.49 0.53 0.52
Debt to Equity2
Reported debt to equity 1.45 0.98 0.85 0.73 0.70
Adjusted debt to equity 1.56 1.05 0.91 0.78 0.75
Return on Assets3 (ROA)
Reported ROA 22.73% 17.62% 9.20% 10.76% 14.65%
Adjusted ROA 22.73% 17.17% 8.96% 10.48% 14.30%

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-17).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Booking Holdings Inc.’s adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Booking Holdings Inc.’s adjusted debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Booking Holdings Inc.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

Booking Holdings Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Revenues 15,066  14,527  12,681  10,743  9,224 
Total assets 21,402  22,687  25,451  19,839  17,421 
Activity Ratio
Total asset turnover1 0.70 0.64 0.50 0.54 0.53
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenues 15,066  14,527  12,681  10,743  9,224 
Adjusted total assets 21,402  23,280  26,138  20,366  17,842 
Activity Ratio
Adjusted total asset turnover2 0.70 0.62 0.49 0.53 0.52

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-17).

2019 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 15,066 ÷ 21,402 = 0.70

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 15,066 ÷ 21,402 = 0.70

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Booking Holdings Inc.’s adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total debt 8,628  8,649  9,521  7,138  6,158 
Stockholders’ equity 5,933  8,785  11,261  9,820  8,795 
Solvency Ratio
Debt to equity1 1.45 0.98 0.85 0.73 0.70
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 9,251  9,242  10,208  7,666  6,580 
Stockholders’ equity 5,933  8,785  11,261  9,820  8,795 
Solvency Ratio
Adjusted debt to equity2 1.56 1.05 0.91 0.78 0.75

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-17).

2019 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity
= 8,628 ÷ 5,933 = 1.45

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 9,251 ÷ 5,933 = 1.56

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Booking Holdings Inc.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income 4,865  3,998  2,341  2,135  2,551 
Total assets 21,402  22,687  25,451  19,839  17,421 
Profitability Ratio
ROA1 22.73% 17.62% 9.20% 10.76% 14.65%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income 4,865  3,998  2,341  2,135  2,551 
Adjusted total assets 21,402  23,280  26,138  20,366  17,842 
Profitability Ratio
Adjusted ROA2 22.73% 17.17% 8.96% 10.48% 14.30%

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-17).

2019 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 4,865 ÷ 21,402 = 22.73%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 4,865 ÷ 21,402 = 22.73%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Booking Holdings Inc.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.