Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Booking Holdings Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Accounts payable	5,094)	3,824)	3,480)	2,507)	1,586)
Current finance lease liabilities	6)	26)	34)	21)	4)
Accrued expenses and other current liabilities	4,448)	6,021)	4,601)	3,223)	1,761)
Deferred merchant bookings	5,270)	4,031)	3,254)	2,223)	906)
Short-term debt	1,880)	1,745)	1,961)	500)	1,989)
Current liabilities	16,698)	15,647)	13,330)	8,474)	6,246)
Deferred income taxes	17)	289)	258)	685)	905)
Non-current operating lease liabilities	557)	483)	599)	552)	351)
Long-term U.S. transition tax liability	—)	257)	515)	711)	825)
Non-current finance lease liabilities	—)	7)	34)	32)	6)
Other long-term liabilities	714)	192)	127)	140)	193)
Long-term debt	16,856)	14,853)	12,223)	11,985)	8,937)
Long-term liabilities	18,144)	16,081)	13,756)	14,105)	11,217)
Total liabilities	34,842)	31,728)	27,086)	22,579)	17,463)
Common stock, $0.008 par value	1)	—)	—)	—)	—)
Treasury stock	(54,315)	(47,877)	(41,426)	(30,983)	(24,290)
Additional paid-in capital	8,356)	7,707)	7,175)	6,491)	6,159)
Retained earnings	40,670)	36,525)	31,830)	27,541)	24,453)
Accumulated other comprehensive loss	(290)	(375)	(323)	(267)	(144)
Stockholders’ equity (deficit)	(5,578)	(4,020)	(2,744)	2,782)	6,178)
Total liabilities and stockholders’ equity (deficit)	29,264)	27,708)	24,342)	25,361)	23,641)

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 company’s liabilities demonstrate a consistent upward trend over the five-year period, increasing from US$17.463 billion in 2021 to US$34.842 billion in 2025. This growth is primarily driven by increases in both current and long-term liabilities. Conversely, stockholders’ equity experienced a significant decline, transitioning from a positive value of US$6.178 billion in 2021 to a deficit of US$5.578 billion in 2025. This shift, coupled with rising liabilities, warrants further investigation into the company’s financial health and capital structure.

Current Liabilities: Current liabilities more than doubled from US$6.246 billion in 2021 to US$16.698 billion in 2025. Significant contributors to this increase include accounts payable, accrued expenses and other current liabilities, and deferred merchant bookings. While short-term debt fluctuated, it remained a notable component. The substantial rise in these current obligations suggests a potential strain on short-term liquidity.
Long-Term Liabilities: Long-term liabilities also exhibited an upward trajectory, increasing from US$11.217 billion in 2021 to US$18.144 billion in 2025. Long-term debt represents the largest portion of these liabilities, growing consistently throughout the period. The long-term U.S. transition tax liability decreased steadily, while other long-term liabilities showed a significant increase in 2025. This indicates a growing reliance on long-term financing.
Stockholders’ Equity: Stockholders’ equity experienced a dramatic decline. Treasury stock increased substantially in absolute value each year, offsetting gains in additional paid-in capital and retained earnings. Accumulated other comprehensive loss remained relatively stable, but negative. The significant increase in treasury stock suggests substantial share repurchases, which, while potentially benefiting shareholders through increased earnings per share, contribute to the erosion of equity. By 2025, the company reported a stockholders’ deficit.
Deferred Liabilities: Both deferred merchant bookings and deferred income taxes increased over the period. Deferred merchant bookings grew from US$906 million to US$5.270 billion, indicating a rise in advance payments from customers. Deferred income taxes decreased initially but showed a slight increase in 2024 before declining again in 2025. These deferred items represent future obligations and revenues.
Total Liabilities and Stockholders’ Equity: The total liabilities and stockholders’ equity (deficit) increased from US$23.641 billion in 2021 to US$29.264 billion in 2025. However, this increase is largely attributable to the growth in liabilities, as stockholders’ equity moved into a deficit position. The divergence between the growth of liabilities and the decline of equity raises concerns about the company’s overall financial stability and solvency.

In summary, the financial position of the company is characterized by increasing liabilities and decreasing stockholders’ equity. The substantial growth in both current and long-term obligations, coupled with the transition to a stockholders’ deficit, suggests a potential need for strategic adjustments to improve financial health and sustainability.

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Booking Holdings Inc. (NASDAQ:BKNG)

Balance Sheet: Liabilities and Stockholders’ Equity