Analysis of Property, Plant and Equipment
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- Statement of Comprehensive Income
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
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Property, Plant and Equipment Disclosure
Booking Holdings Inc., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of the reported figures reveals several trends in property, plant, and equipment. Capitalized software consistently increased over the five-year period, growing from US$742 million in 2021 to US$1,437 million in 2025. Computer equipment experienced an initial increase to US$758 million in 2022, followed by a decrease to US$608 million in 2023, and a subsequent recovery to US$751 million in 2025. Leasehold improvements demonstrated a declining trend, decreasing from US$268 million in 2021 to US$202 million in 2025. Office equipment, furniture and fixtures remained relatively stable, fluctuating between US$58 million and US$71 million. Building construction-in-progress, reported as US$328 million in 2021, was not reported in subsequent years.
- Gross Property and Equipment
- Gross property and equipment decreased from US$2,127 million in 2021 to US$1,993 million in 2022, then increased to US$2,450 million in 2025. The largest increase occurred between 2023 and 2024, rising from US$2,003 million to US$2,224 million. This suggests potential investment in property and equipment during that period.
- Accumulated Depreciation
- Accumulated depreciation consistently increased throughout the period, moving from negative US$1,305 million in 2021 to negative US$1,643 million in 2025. The rate of increase appeared to accelerate between 2023 and 2024, increasing by US$173 million, and again between 2024 and 2025, increasing by US$251 million. This indicates a higher level of depreciation expense being recognized in recent years.
- Net Property and Equipment
- Net property and equipment decreased from US$822 million in 2021 to US$669 million in 2022, then increased to US$807 million in 2025. The increase from 2023 to 2024 was more pronounced, rising from US$784 million to US$832 million, before decreasing slightly in 2025. The trend in net property and equipment is influenced by both gross additions and accumulated depreciation.
The consistent growth in capitalized software suggests ongoing investment in technology. The decline in leasehold improvements may indicate a shift in business strategy related to leased facilities or the expiration of lease terms. The absence of building construction-in-progress after 2021 warrants further investigation to understand if planned construction projects were completed, abandoned, or reclassified.
Asset Age Ratios (Summary)
Booking Holdings Inc., asset age ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The analysis of property, plant, and equipment reveals fluctuating trends in asset age and useful life estimations over the five-year period. The average age ratio exhibits an initial increase followed by a period of relative stability and a subsequent rise. Simultaneously, estimations of total useful life and elapsed time since purchase demonstrate a decreasing trend, while the remaining useful life shows a corresponding decline.
- Average Age Ratio
- The average age ratio increased from 61.35% in 2021 to 66.43% in 2022, indicating a greater proportion of assets nearing the end of their useful lives. This was followed by a decrease to 60.86% in 2023, suggesting potential asset turnover or revaluation. The ratio then rose slightly to 62.59% in 2024 before increasing again to 67.06% in 2025, representing the highest value within the observed period. This final increase suggests a continued aging of the asset base.
- Useful Life and Age Estimations
- Estimated total useful life decreased from 8 years in 2021 to 6 years in both 2024 and 2025. Concurrently, the estimated age, representing the time elapsed since purchase, decreased from 5 years in 2021 to 4 years in 2023, 2024, and 2025. This decrease in estimated age, despite the increasing average age ratio, could indicate a shift towards acquiring newer assets or revising depreciation schedules. The estimated remaining life followed suit, declining from 3 years in 2021, 2022, and 2023 to 2 years in 2024 and 2025, reflecting the impact of the shorter estimated total useful life.
The combined trends suggest a potential need for increased capital expenditure to replace aging assets. The decreasing estimations of total useful life, coupled with the increasing average age ratio, indicate that a larger portion of the asset base is approaching the end of its functional life. The consistent remaining useful life of 3 years in the earlier period, followed by a reduction to 2 years, warrants further investigation into the company’s asset replacement strategy.
Average Age
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Accumulated depreciation | ||||||
| Property and equipment, gross | ||||||
| Asset Age Ratio | ||||||
| Average age1 | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Average age = 100 × Accumulated depreciation ÷ Property and equipment, gross
= 100 × ÷ =
An examination of the financial information reveals trends in accumulated depreciation, gross property and equipment, and the average age ratio over a five-year period. Accumulated depreciation initially increased from 2021 to 2022, then decreased in 2023 before rising again in 2024 and 2025. Gross property and equipment decreased between 2021 and 2022, followed by a period of growth through 2025. The average age ratio demonstrates a general upward trend throughout the period, with some fluctuation.
- Accumulated Depreciation
- Accumulated depreciation experienced an increase of approximately 1.8% from $1,305 million in 2021 to $1,324 million in 2022. A subsequent decrease of 7.9% brought the value to $1,219 million in 2023. From 2023 to 2025, accumulated depreciation increased significantly, rising to $1,643 million, representing a 34.8% increase over the two-year period. This suggests a potentially increasing rate of asset consumption or a change in depreciation methods.
- Property and Equipment, Gross
- Gross property and equipment decreased by 6.3% from $2,127 million in 2021 to $1,993 million in 2022. The value then stabilized and began to increase, reaching $2,450 million in 2025, a 22.9% increase from 2022. This indicates investment in new assets following the initial decline, potentially reflecting a strategic shift or recovery from prior conditions.
- Average Age Ratio
- The average age ratio increased from 61.35% in 2021 to 66.43% in 2022, indicating an aging asset base. It decreased slightly to 60.86% in 2023, but then rose to 62.59% in 2024 and further to 67.06% in 2025. This consistent upward trend suggests that, on average, the company’s property and equipment are becoming older relative to their useful lives. The increasing ratio, coupled with the growth in gross property and equipment, suggests that new asset additions may not be offsetting the aging of the existing asset base at a sufficient rate.
The interplay between these three items suggests a dynamic asset management strategy. While the company is investing in new property and equipment, the increasing average age ratio warrants further investigation to ensure optimal asset utilization and potential future capital expenditure planning.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Estimated total useful life = Property and equipment, gross ÷ Depreciation expense
= ÷ =
Over the five-year period, the gross value of property and equipment exhibited fluctuations. Initially decreasing from US$2,127 million in 2021 to US$1,993 million in 2022, it subsequently increased to US$2,003 million in 2023, and continued to rise to US$2,224 million in 2024, reaching US$2,450 million in 2025. Depreciation expense followed an upward trajectory, increasing from US$259 million in 2021 to US$419 million in 2025. Concurrently, the estimated total useful life of the property and equipment demonstrated a decreasing trend.
- Gross Property and Equipment
- The gross property and equipment value experienced a period of decline followed by consistent growth. The initial decrease may be attributable to asset disposals or impairments. The subsequent increases suggest ongoing investment in property and equipment.
- Depreciation Expense
- The consistent increase in depreciation expense aligns with the rising gross value of property and equipment. However, the accelerating rate of increase in depreciation expense, particularly from 2023 onwards, warrants further investigation. This could be due to a larger proportion of newer, more depreciable assets being added to the asset base, or a change in depreciation methods.
- Estimated Useful Life
- The estimated total useful life of the property and equipment decreased from 8 years in 2021 to 6 years in 2024 and remained at 6 years in 2025. This reduction in estimated useful life will result in higher depreciation expense, all else being equal. The shortening of the useful life could reflect changes in technology, increased usage, or a more conservative assessment of asset longevity. The stabilization at 6 years in the most recent periods suggests a consistent approach to estimating asset lives.
The combined effect of increasing asset values and decreasing estimated useful lives is a significant rise in depreciation expense. This trend should be monitored closely as it impacts profitability and cash flow. Further analysis should investigate the specific assets contributing to these changes and the underlying reasons for the reduced useful life estimates.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= ÷ =
Analysis reveals fluctuating trends in accumulated depreciation and depreciation expense over the five-year period. The reported time elapsed since purchase remains relatively stable, offering context for the observed depreciation patterns.
- Accumulated Depreciation
- Accumulated depreciation initially increased from US$1,305 million in 2021 to US$1,324 million in 2022, representing a modest rise. A notable decrease followed in 2023, with accumulated depreciation falling to US$1,219 million. This was then reversed, with increases recorded in both 2024 and 2025, reaching US$1,392 million and US$1,643 million respectively. The increase in 2025 is particularly substantial.
- Depreciation Expense
- Depreciation expense decreased from US$259 million in 2021 to US$227 million in 2022. A subsequent increase was observed in 2023, rising to US$282 million. Further increases occurred in 2024 and 2025, reaching US$370 million and US$419 million, respectively. The trend indicates a growing depreciation charge over the latter part of the period.
- Time Elapsed Since Purchase
- The reported time elapsed since purchase remained at 5 years in 2021 and 6 years in 2022. It then decreased to 4 years in 2023 and remained constant at 4 years through 2025. This suggests a significant acquisition or series of acquisitions occurred around 2023, introducing newer assets into the property, plant, and equipment base.
The decrease in accumulated depreciation in 2023, coupled with the decrease in time elapsed since purchase, suggests the introduction of new assets with lower accumulated depreciation. The subsequent increases in both accumulated depreciation and depreciation expense in 2024 and 2025 likely reflect the ongoing depreciation of both the newer and older assets, with the 2025 figures indicating a potentially larger contribution from the newer asset base or a change in depreciation methods.
Estimated Remaining Life
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Estimated remaining life = Property and equipment, net ÷ Depreciation expense
= ÷ =
The net value of property and equipment exhibited volatility over the five-year period. Beginning at US$822 million in 2021, it decreased to US$669 million in 2022 before increasing to US$784 million in 2023 and US$832 million in 2024. The most recent year, 2025, shows a slight decrease to US$807 million.
Depreciation expense demonstrated an increasing trend throughout the period. Starting at US$259 million in 2021, it declined to US$227 million in 2022, then rose consistently to US$282 million in 2023, US$370 million in 2024, and further to US$419 million in 2025.
- Estimated Remaining Life
- The estimated remaining useful life of the property and equipment decreased from three years in 2021, 2022, and 2023 to two years in 2024 and 2025. This reduction in estimated life, concurrent with increasing depreciation expense, suggests an acceleration in the recognition of the asset’s cost as an expense.
The combination of a fluctuating net book value and rising depreciation expense, alongside the shortening of the estimated remaining life, warrants further investigation. The increase in depreciation expense could be due to increased usage, technological obsolescence, or a change in accounting estimates. The decrease in estimated remaining life directly impacts the depreciation calculation, contributing to the observed increase in expense. The initial decrease in net property and equipment in 2022, followed by subsequent increases, may be attributable to asset acquisitions, disposals, or revaluations not explicitly detailed in the presented information.
The trend suggests a potential need to assess the appropriateness of the depreciation methods and estimated useful lives being applied to the property and equipment. A more detailed analysis of capital expenditure patterns and asset retirement schedules would provide additional context.