Booking Holdings Inc. (NASDAQ:BKNG)

Asset Turnover

The reported total asset turnover shows a consistent upward trend from 0.31 in 2020 to a peak of 0.88 in 2023, followed by a slight decrease to 0.86 in 2024. The adjusted total asset turnover follows a similar pattern, increasing steadily from 0.31 in 2020 to 0.90 in 2023 before a minor decline to 0.87 in 2024, indicating improving efficiency in asset utilization over the period before stabilizing.

Current Ratio

Both reported and adjusted current ratios decline notably from 3.56 and 3.65 in 2020 to approximately 1.28 and 1.29 in 2023, respectively, with a slight increase to 1.31 and 1.32 in 2024. This suggests a gradual reduction in short-term liquidity, moving from a very strong position toward a more moderate liquidity level.

Debt Ratios

The reported and adjusted debt to equity ratios increased sharply in 2022, rising from around 1.7 in 2021 to above 4.4 in 2022. Data for subsequent years are missing, limiting further trend analysis. Meanwhile, the debt to capital ratios increased steadily from around 0.68–0.71 in 2020 to above 1.2 in 2023 and 2024, indicating a growing reliance on debt financing relative to capital structure.

Financial Leverage

The reported financial leverage rose significantly from 4.47 in 2020 to 9.12 in 2022, while the adjusted figure increased from 3.74 to 8.37 over the same period. This demonstrates an increasing use of leverage, potentially amplifying returns but also risk; data for 2023 and 2024 are unavailable.

Profitability Metrics

The reported net profit margin shows a strong upward trajectory, rising from a very low 0.87% in 2020 to 24.78% in 2024. The adjusted net profit margin shows a similar positive trend, increasing from 7.24% in 2020 to 25.01% in 2024, reflecting improving profitability and operational efficiency.

Return on Equity (ROE)

Reported ROE climbs dramatically from 1.21% in 2020 to 109.92% in 2022, with adjusted ROE similarly rising from 8.53% to 90.58%, indicating exceptional performance in those years. No data is provided for 2023 and 2024, limiting assessment of whether this trend continued.

Return on Assets (ROA)

Reported ROA increases steadily from 0.27% in 2020 to 21.23% in 2024, with adjusted ROA values also rising from 2.28% to 21.83% over the same period. This highlights a consistent improvement in asset profitability and overall operational effectiveness.

The financial data reveals a consistent upward trend in revenues over the analyzed five-year period. Revenues grew significantly from 6,796 million US dollars in 2020 to 23,739 million US dollars in 2024, indicating strong top-line growth. The increase year-over-year is particularly pronounced between 2020 and 2022, with growth continuing at a steadier pace through 2024.

Total assets exhibited a generally positive trend, although with some fluctuations. Total assets increased from 21,874 million US dollars in 2020 to 25,361 million US dollars in 2022, then slightly declined in 2023 to 24,342 million before rising again to 27,708 million in 2024. This pattern suggests moderate asset base growth with some variability possibly reflecting changes in investment or divestment activities.

The reported total asset turnover ratio improved substantially over this timeframe, rising from 0.31 in 2020 to a peak of 0.88 in 2023, before a minor decline to 0.86 in 2024. This indicates enhanced efficiency in generating revenues from assets, with the business increasingly utilizing its asset base to drive sales.

Adjusted total assets followed a trend similar to reported total assets, increasing from 21,585 million US dollars in 2020 to 24,865 million in 2022, slightly decreasing in 2023, and then increasing again to 27,192 million in 2024. The adjusted total asset turnover ratio also showed an upward trajectory, climbing from 0.31 in 2020 to 0.90 in 2023 before a small decrease to 0.87 in 2024, mirroring the trend in reported asset turnover and confirming efficiency improvements.

Overall, the data suggests a strong growth trajectory in revenues coupled with improved asset utilization over the period. The slight dips in total assets and turnover ratios in 2023, followed by recoveries in 2024, may warrant further examination to understand the underlying operational or market factors. Nonetheless, the general trend is indicative of a company successfully expanding while improving how effectively it deploys its asset base to generate revenue.

Current Assets

The current assets of the company have shown a continuous growth trend over the five-year period. Starting from US$12,206 million in 2020, the value increased steadily to US$20,491 million by the end of 2024, reflecting an overall rise in liquid and short-term assets available to the company.

Current Liabilities

Current liabilities have also increased significantly throughout the same period. The liabilities grew from US$3,425 million in 2020 to US$15,647 million in 2024. The rise was particularly notable between 2022 and 2023, indicating increasing short-term obligations or payables.

Reported Current Ratio

The reported current ratio, which reflects the company’s ability to cover its short-term liabilities with short-term assets, has declined over the years. It decreased from a strong 3.56 in 2020 to about 1.31 in 2024. This decline points to a reduction in the margin of safety for meeting current obligations, suggesting increasing liquidity pressure.

Adjusted Current Assets

Adjusted current assets follow a very similar upward trend compared to reported current assets, rising from US$12,372 million in 2020 to US$20,637 million in 2024. The adjustments made do not drastically alter the upward growth trajectory of the company’s short-term assets.

Adjusted Current Liabilities

Adjusted current liabilities mirror the pattern of reported current liabilities, increasing from US$3,388 million in 2020 to US$15,647 million in 2024. The consistency in values between reported and adjusted figures indicates limited impact from the adjustments on the liability side.

Adjusted Current Ratio

The adjusted current ratio also shows a declining trend from 3.65 in 2020 to 1.32 in 2024, closely matching the reported current ratio values. This decline confirms the trend of decreasing liquidity buffer after considering adjustments, highlighting a gradual tightening in the company’s short-term financial position over time.

The financial data reveals notable trends in the company's leverage and equity over the analyzed periods. Total debt has exhibited a consistent upward trajectory, increasing from approximately $12.0 billion at the end of 2020 to about $16.6 billion by the end of 2024. This steady rise in debt indicates a trend of increasing financial obligations.

Conversely, stockholders’ equity has undergone significant fluctuation and deterioration. Initially, equity grew from $4.9 billion in 2020 to $6.2 billion in 2021. However, there was a sharp decline in subsequent years, resulting in a negative equity position from 2023 onwards, reaching a deficit of approximately $4.0 billion by the end of 2024. This downward movement suggests potential challenges in capital structure or retained earnings.

Examining the reported debt to equity ratio, a key leverage indicator, it decreased from 2.46 in 2020 to 1.77 in 2021, reflecting improved leverage at that point. Nevertheless, there was a substantial increase to 4.51 in 2022 before data becomes unavailable in 2023 and 2024. This increase corresponds with the decline in equity and increase in debt, signifying elevated financial risk.

The adjusted figures, which may account for additional liabilities or off-balance-sheet items, mirror the patterns observed in reported data. Adjusted total debt similarly increased from $12.5 billion in 2020 to $17.2 billion in 2024. Adjusted stockholders’ equity rose slightly in 2021 but then declined sharply and turned negative by 2023, reaching a deficit of approximately $4.2 billion by 2024.

The adjusted debt to equity ratio declined from 2.17 in 2020 to 1.72 in 2021, suggesting reduced leverage temporarily. However, it surged to 4.45 in 2022 before the data ceases, aligning with the increasing debt levels and negative equity positions observed.

Overall, the data indicates an increasing reliance on debt financing coupled with a substantial erosion of equity, particularly from 2022 to 2024. This combination results in elevated leverage ratios pointing to heightened financial risk and potential solvency concerns if trends persist.

The analysis of the financial data over the five-year period reveals significant changes in the company's capital structure, particularly in terms of leverage and debt levels.

Total Debt

Total debt displays a fluctuating yet generally increasing trend. It started at $12,014 million at the end of 2020 and decreased to $10,936 million in 2021. However, from 2021 onwards, total debt rose steadily, reaching $16,631 million by the end of 2024. This suggests an increased reliance on debt financing over recent years.

Total Capital

Total capital exhibited a downward trend for most of the period. Beginning at $16,907 million at the end of 2020, it slightly increased to $17,114 million in 2021, followed by a decline to $15,320 million in 2022 and a more pronounced drop in 2023 to $11,508 million. A modest recovery occurred in 2024 to $12,611 million. This decline indicates a shrinking capital base relative to debt.

Reported Debt to Capital Ratio

The reported debt to capital ratio increased significantly over the period, beginning at 0.71 in 2020 and decreasing slightly to 0.64 in 2021. Thereafter, it rose sharply to 0.82 in 2022 and surged beyond 1.0 in 2023 to 1.24, further increasing to 1.32 in 2024. A ratio above 1.0 signifies that total debt exceeded total capital, highlighting a high leverage position in the latter years.

Adjusted Total Debt and Capital

The adjusted total debt followed a similar pattern to reported total debt, starting from $12,539 million in 2020, dipping slightly in 2021 to $11,430 million, and then pursuing an upward trajectory up to $17,236 million in 2024.

Adjusted total capital decreased more sharply than the reported figure, from $18,307 million in 2020 to $12,989 million in 2024, with notable declines in 2022 and 2023.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio mirrors the reported ratio, beginning at 0.68 in 2020, dipping to 0.63 in 2021, then climbing to 0.82 in 2022, and rising sharply to 1.25 in 2023 and 1.33 in 2024. This confirms an increasing financial leverage and potential risk exposure as debt surpasses capital in recent years.

Overall, the data suggests that the company increased its debt levels over time while its capital base diminished, leading to a heightened debt to capital ratio. This evolving capital structure points to greater financial leverage and potentially increased financial risk as the company moves forward.

The analysis of the financial data over the five-year period reveals several notable trends and fluctuations in the company’s financial structure and leverage.

Total Assets

Total assets showed a steady increase from US$21,874 million in 2020 to US$25,361 million in 2022, followed by a slight decline to US$24,342 million in 2023. In 2024, total assets rose again substantially to US$27,708 million, indicating overall asset growth with a minor dip in 2023.

Stockholders’ Equity (Deficit)

The stockholders’ equity displayed a significant downward trend. It increased from US$4,893 million in 2020 to US$6,178 million in 2021 but then declined sharply to US$2,782 million in 2022. In 2023 and 2024, the company reported stockholders’ equity deficits of -US$2,744 million and -US$4,020 million respectively, reflecting a deteriorating equity position with increasing negative values.

Reported Financial Leverage (Ratio)

Financial leverage was relatively stable and moderate in 2020 and 2021, at 4.47 and 3.83 respectively. However, it increased sharply to 9.12 in 2022, more than doubling the previous year, signaling a significant rise in the proportion of debt relative to equity. Data for 2023 and 2024 are not available.

Adjusted Total Assets

The adjusted total assets trend closely mirrors the unadjusted total assets, growing from US$21,585 million in 2020 to US$24,865 million in 2022, slightly declining in 2023 to US$23,804 million, and increasing again to US$27,192 million in 2024.

Adjusted Stockholders’ Equity (Deficit)

Adjusted equity figures reflect a similar pattern to the reported equity. Adjusted equity increased initially from US$5,768 million in 2020 to US$6,633 million in 2021 but then decreased sharply to US$2,971 million in 2022. The adjusted equity turned negative in 2023 and 2024, with deficits of -US$3,024 million and -US$4,247 million respectively, suggesting growing financial stress when considering adjustments.

Adjusted Financial Leverage (Ratio)

Adjusted financial leverage values show a decreasing trend from 3.74 in 2020 to 3.5 in 2021, followed by a significant increase to 8.37 in 2022. Similar to the reported leverage, data for the subsequent years are not provided, though the rising leverage ratio in 2022 indicates increased reliance on debt financing relative to equity after adjustment.

Overall, the data reveal that the company experienced asset growth but faced deteriorating equity positions after 2021, culminating in equity deficits in the last two years reported. This equity decline substantially increased financial leverage, with ratios doubling or more by 2022, implying elevated financial risk and reliance on debt. The lack of reported leverage data for the latest years limits analysis for 2023 and 2024, although equity deficits indicate continuing challenges in equity financing.

The financial data reveals a marked upward trend across key indicators over the five-year period. Net income exhibited significant growth, increasing from 59 million US dollars at the end of 2020 to 5,882 million US dollars by the end of 2024. This represents substantial improvement in the company's profitability, indicating effective cost management, revenue expansion, or both.

Revenues also displayed consistent increases each year, starting at 6,796 million US dollars in 2020 and reaching 23,739 million US dollars in 2024. This steady revenue growth indicates successful business operations and possibly an expanding market presence or enhanced demand for the company's offerings.

The reported net profit margin rose sharply from 0.87% in 2020 to 24.78% in 2024. This improvement indicates not only increasing profitability but also enhanced operational efficiency or improved pricing strategies contributing to a higher proportion of revenue translating into net profit.

Adjusted net income followed a similar trajectory to net income, growing from 492 million US dollars in 2020 to 5,937 million US dollars in 2024. This suggests that the underlying profitability, excluding exceptional items or one-time adjustments, improved significantly, supporting the sustainability of earnings growth.

However, the adjusted net profit margin shows some fluctuations initially, starting at 7.24% in 2020, dipping to 5.43% in 2021, then climbing sharply to 25.01% by 2024. The initial dip in 2021 may indicate transitional challenges or one-off impacts affecting adjusted profitability, but the subsequent strong recovery and growth highlight improved operational leverage and margin expansion over the latter years.

Overall, the data reflects a sustained enhancement in financial performance, characterized by rising revenues, expanding net income, and improving profit margins. The consistent upward trends suggest effective management strategies and a healthy financial position by the end of the period under review.

The data reveals significant fluctuations and trends in the financial performance and equity position over the five-year period.

Net Income

Net income exhibits a consistent and substantial increase from 59 million US dollars in 2020 to 5,882 million US dollars in 2024. The growth trajectory is especially steep between 2020 and 2022, and continues robustly through 2024, indicating strong profitability expansion.

Stockholders’ Equity (Deficit)

Stockholders’ equity shows an increasing trend initially, rising from 4,893 million US dollars in 2020 to 6,178 million in 2021. However, from 2022 onwards, there is a marked decline, with equity dropping sharply to a deficit position of -2,744 million US dollars in 2023 and further deteriorating to -4,020 million US dollars in 2024. This shift from positive to negative equity suggests significant financial challenges or increased liabilities relative to assets in recent years.

Reported Return on Equity (ROE)

Reported ROE dramatically improves from 1.21% in 2020 to 18.86% in 2021 and then experiences an exceptional surge to 109.92% in 2022. Data for 2023 and 2024 are not provided. This substantial rise indicates extraordinary profitability relative to equity during this period, particularly in 2022.

Adjusted Net Income

Adjusted net income follows a similar increasing pattern as net income, starting at 492 million US dollars in 2020, rising to 595 million in 2021, and then surging to 5,937 million US dollars in 2024. The adjusted figures also suggest strong underlying profitability growth, potentially reflecting operational performance excluding unusual or non-recurring items.

Adjusted Stockholders’ Equity (Deficit)

Adjusted stockholders’ equity mirrors the trend of reported equity. It starts at 5,768 million US dollars in 2020, increases slightly in 2021, then declines sharply to a deficit of -4,247 million US dollars by 2024. The adjustment does not change the overall direction of equity movements but may indicate recognition of additional liabilities or valuation changes.

Adjusted Return on Equity (ROE)

Adjusted ROE shows moderate growth from 8.53% in 2020 to 8.97% in 2021 before experiencing an extraordinary increase to 90.58% in 2022. Like the reported ROE, adjusted ROE data for 2023 and 2024 are not available. This pattern highlights significant profitability on equity on an adjusted basis during the earlier years of the period reviewed.

Overall, the data indicates robust growth in profitability over the five years, both in reported and adjusted terms. However, the equity position deteriorates sharply starting from 2022, moving into a negative equity territory by 2023 and continuing downward in 2024. The exceptionally high ROE figures in 2022 may reflect the effect of reduced equity denominators or exceptional income, warranting further investigation into the underlying causes of these financial dynamics.

The financial data demonstrates a consistent and substantial improvement in profitability and asset efficiency over the five-year period analyzed.

Net Income

Net income has increased significantly from 59 million US dollars in 2020 to 5,882 million US dollars in 2024. The growth trajectory shows a strong upward trend, with the most pronounced increases occurring between 2021 and 2024, indicating enhanced operational performance and profit generation capacity.

Total Assets

Total assets grew moderately from 21,874 million US dollars in 2020 to 27,708 million US dollars in 2024. While there was an uptick in asset base, this growth was more gradual and less pronounced than the growth in net income, suggesting improved utilization of assets over time.

Reported Return on Assets (ROA)

The reported ROA displayed a remarkable increase from a minimal 0.27% in 2020 to 21.23% in 2024. This indicates a significant enhancement in the firm’s efficiency in generating profits from its asset base, reflecting both operational improvements and possibly higher profit margins.

Adjusted Net Income

Adjusted net income followed a similar upward trend, rising from 492 million US dollars in 2020 to 5,937 million US dollars in 2024. This adjustment likely accounts for certain items excluded from net income, such as non-recurring charges or gains, providing a clearer view of sustainable earnings growth.

Adjusted Total Assets

Adjusted total assets increased from 21,585 million US dollars in 2020 to 27,192 million US dollars in 2024, mirroring the trend in reported total assets. The adjusted figures suggest consistency in the valuation of assets used for the efficiency analysis.

Adjusted Return on Assets (ROA)

Adjusted ROA improved from 2.28% in 2020 to 21.83% in 2024, paralleling the reported ROA trend. The faster growth in adjusted ROA compared to the starting point signifies sustained and accelerating efficiency improvements when considering normalized earnings and assets.

Overall, the data points to strong operational and financial improvements, reflected in the substantial increase in both net income and adjusted net income alongside relatively stable growth in the asset base. The marked rise in both reported and adjusted ROA highlights the company’s growing effectiveness in leveraging its assets to generate profits over the analyzed periods.