Booking Holdings Inc. (NASDAQ:BKNG)

The composition of liabilities and stockholders’ equity exhibited significant shifts over the observed period, spanning from March 31, 2021, to December 31, 2025. A notable trend involves the increasing proportion of current liabilities relative to total liabilities and equity, particularly from 2022 onwards. Conversely, stockholders’ equity experienced a decline, transitioning from a positive contribution to the overall capital structure to a negative one by the end of 2023, and remaining negative through the end of 2025.

Current Liabilities

Current liabilities consistently represented a substantial portion of the total, generally ranging between 24% and 33% through 2021. However, a clear upward trend emerged starting in June 2022, peaking at 63.79% in June 2024, before decreasing slightly to 57.06% by December 2025. This increase was primarily driven by substantial growth in deferred merchant bookings and accrued expenses.

Deferred Merchant Bookings

Deferred merchant bookings demonstrated considerable volatility. Initially a smaller component, it increased significantly in June 2021 (7.94%) and again in March 2022 (12.35%). It reached its highest point in September 2025 at 21.85%, indicating a growing reliance on this liability type. This suggests a change in revenue recognition practices or a significant increase in advance bookings.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities also showed an increasing trend, particularly pronounced from September 2022 onwards. The proportion rose from 13.26% in September 2022 to 19.04% in December 2022, and further to 21.82% in September 2024. This suggests potential increases in operating expenses or changes in payment terms with suppliers.

Long-Term Debt

Long-term debt constituted a significant portion of the capital structure, generally between 33% and 53% over the period. It peaked at 58.04% in December 2024, indicating increased reliance on long-term financing. While fluctuating, it remained a dominant component of total liabilities.

Stockholders’ Equity

Stockholders’ equity experienced a marked deterioration. While initially contributing around 20% to the capital structure, it declined steadily, becoming negative in June 2023 (-2.50%) and reaching -19.06% by December 2025. This negative equity position is largely attributable to substantial treasury stock repurchases, which consistently represented a large negative percentage of total liabilities and equity, and accumulated other comprehensive loss. The common stock component remained negligible throughout the period.

Treasury Stock

Treasury stock consistently represented a substantial negative portion of total liabilities and stockholders’ equity, ranging from -101.68% to -185.60%. The increasing negative percentage indicates aggressive share repurchase programs, significantly reducing stockholders’ equity.

Deferred Income Taxes & Other Long-Term Liabilities

Deferred income taxes and other long-term liabilities remained relatively stable as a percentage of the total, with only moderate fluctuations throughout the period. Their contribution to the overall capital structure was consistently smaller compared to current liabilities and long-term debt.

In summary, the balance sheet composition shifted towards a greater reliance on both short-term and long-term liabilities, coupled with a significant erosion of stockholders’ equity. The increasing proportion of deferred merchant bookings and accrued expenses within current liabilities, alongside substantial treasury stock repurchases, are key drivers of these changes.