Booking Holdings Inc. (NASDAQ:BKNG)

Return on Assets (ROA)

The Return on Assets (ROA) shows a notably positive trend from the first available data point in March 31, 2020. Initially recorded at 0.27%, it increases to 2.97% by June 30, 2020, followed by moderate fluctuations in the 1.6% to 4.9% range through December 31, 2021. Starting from March 31, 2022, the ROA exhibits a strong upward trajectory, reaching 11.06% and further climbing to a peak of 21.23% by March 31, 2025. There are occasional minor decreases, such as the dip from 20.68% in December 31, 2023, to 17.62% in March 31, 2024, but the overall trend remains positive, indicating improved asset profitability over the period.

Financial Leverage

Financial leverage shows variability across the periods with some significant fluctuations. Starting at 4.66 in March 31, 2020, it climbs to 5.23 by June 30, 2020, before dropping down to 4.21 at September 30, 2021, and reaching a low of 3.83 in December 31, 2021. The leverage spikes to 9.12 as of December 31, 2022, followed by a very sharp increase to 23.47 in March 31, 2023. After this date, data is missing, limiting analysis beyond this point. The widened financial leverage suggests periods of increased borrowing or altered capital structure, particularly towards late 2022 and early 2023.

Return on Equity (ROE)

Return on Equity remains absent until March 31, 2020, when it is recorded at 1.21%. It then rises dramatically to 14.76% by June 30, 2020, followed by a volatile period with values fluctuating between 6.89% and 18.86% through December 31, 2021. From March 31, 2022 onwards, the ROE shows explosive growth from 38.58% to a remarkable peak of 374.67% in March 31, 2023. Post that peak, no further data is available. This spike indicates extraordinary returns to equity holders during this period, which could be associated with high financial leverage or other exceptional financial events.

The analysis of the quarterly financial metrics reveals several key trends and variations over the examined periods.

Net Profit Margin

The net profit margin exhibits an overall upward trend from approximately 0.87% in early recorded quarters to a peak exceeding 25% in late 2023. After reaching this high point, margins slightly fluctuate but remain strong, staying above 19% and generally trending towards the mid-20% range. This suggests improving profitability and effective cost management over time.

Asset Turnover

The asset turnover ratio generally improves throughout the periods analyzed. Starting at 0.31 and dipping slightly in mid-2020, it then rises consistently to nearly 0.9 by mid-2025, indicating increasing efficiency in the use of assets to generate revenue. There are small fluctuations, notably a slight dip around late 2023 and early 2024, but the overall pattern is one of strengthening operational efficiency.

Financial Leverage

Financial leverage displays volatility with incomplete data beyond 2022. Initially, ratios hover between approximately 4.5 and 5 across early periods with a notable surge to above 9 at the end of 2022 and an extreme spike to 23.47 during early 2023. This sharp increase suggests a significant change in capital structure or accounting treatment during this time frame. The absence of data following this peak inhibits further trend analysis on leverage beyond 2023.

Return on Equity (ROE)

The ROE shows a remarkable increase from a low baseline, escalating dramatically from near 1.2% to over 100% by late 2022 and surging to above 370% in early 2023. Such extraordinary growth may reflect exceptional profitability or leverage effects during this interval. However, no subsequent data is available to confirm if this performance sustained or normalized in later periods.

In summary, profit margins and asset utilization improve steadily, indicating enhanced profitability and operational efficiency. Financial leverage and ROE experience significant fluctuations with extreme values in early 2023, suggesting notable changes in financing structure or extraordinary financial events. The incompleteness of leverage and ROE data beyond early 2023 limits the ability to evaluate ongoing trends in these areas.

The data reveals multiple noteworthy trends across various financial ratios and metrics over the analyzed periods.

Tax Burden

The tax burden ratio shows a generally increasing trend from 0.10 in early 2020 to around 0.81 in recent periods, indicating a stronger retention of pre-tax profits after taxes. This growth stabilizes with minimal fluctuations around 0.78 to 0.82 from mid-2022 onward, suggesting a consistent effective tax rate or tax efficiency over the latter periods.

Interest Burden

The interest burden ratio improves from 0.61 in early 2020, rising steadily and peaking near 0.91 in late 2022. This suggests a reduction in interest expenses relative to earnings before interest and taxes (EBIT). After reaching this peak, the ratio decreases gradually but remains relatively high, around 0.76 by mid-2025, implying sustained control over interest costs but a slight uptick in interest expenses in the most recent quarters.

EBIT Margin

The EBIT margin percentage displays considerable volatility initially, with values ranging from 13.58% to about 24.8% in 2020. From 2021 forward, the margin improves consistently, climbing to a peak of 36.17% in early 2025 before a slight retrenchment in the last recorded period. This upward trend reflects improved operational efficiency and profitability before interest and taxes.

Asset Turnover

Asset turnover shows a strong positive trajectory, starting at 0.31 in early 2020 and increasing steadily to nearly 0.89 by mid-2025. This consistent increase indicates enhanced efficiency in using assets to generate revenue, signifying operational improvements over time.

Financial Leverage

Financial leverage fluctuates significantly in early periods, with values around 4.5 to 6.1 between 2020 and 2022. Notably, in late 2022, leverage spikes sharply to 9.12 and reaches an uncharacteristically high 23.47, after which no further data is available. This sudden increase possibly indicates a significant rise in debt or other leveraged liabilities, suggesting a more aggressive capital structure approach or increased borrowing in that period.

Return on Equity (ROE)

ROE figures demonstrate high volatility with an initial low at 1.21% in early available data, followed by a marked increase, peaking dramatically at 374.67% by early 2023. This extreme value could reflect extraordinary gains, changes in equity base, or one-time events. Data for ROE beyond this period is not provided, limiting insight into more recent profitability trends for shareholders.

Overall, the company appears to have enhanced operational profitability and asset efficiency over the reporting periods. Interest expenses have been relatively well-managed, contributing to improved earnings quality. The surging financial leverage late in the timeline warrants attention due to the potential risks associated with increased borrowing. The exceptional spike in ROE, although indicative of strong returns, should be interpreted cautiously given the lack of subsequent data and potential for non-recurring effects.

The financial data over the observed periods indicates notable fluctuations and trends in the profitability and efficiency metrics of the entity.

Net Profit Margin

This metric demonstrates a generally increasing trend over time. Starting without data for the early periods, it showed a margin of 0.87% by March 31, 2020. From that point forward, there was a considerable increase reaching up to 25.7% by December 31, 2023. Subsequent quarters after this peak indicate some variability, with margins fluctuating mostly in the high teens to mid-twenties percentile range, ending at 19.23% by June 30, 2025. This suggests an overall improvement in profitability, albeit with some short-term volatility.

Asset Turnover

Asset turnover ratios started at 0.31 in March 31, 2020 and showed some initial decline, reaching a low of 0.24 in June 30, 2020. Following this, there was a steady upward trend indicating improved efficiency in asset utilization. By December 31, 2023, the ratio peaked at 0.8, reflecting enhanced asset productivity. The ratio continued to fluctuate slightly but remained relatively high, often above 0.7, and ending at 0.82 by June 30, 2025. Overall, this reflects a sustained increase in the efficiency of asset use over the periods analyzed.

Return on Assets (ROA)

The ROA displayed an initial low value of 0.27% in March 31, 2020, then rose variably but with a clear upward trajectory over time. By December 31, 2023, ROA peaked at 20.68%, signaling significant improvement in the capacity to generate profits from assets. The subsequent quarters showed a slight decline and fluctuations but maintained relatively high values between 15% and 21%. The last data point at June 30, 2025 was 15.69%, which still represents a substantially higher return compared to earlier years. This progression indicates enhanced operational effectiveness and profitability relative to asset base over the analyzed periods.

In summary, the data exhibits a positive trend across all three financial performance metrics—net profit margin, asset turnover, and return on assets. While periodic fluctuations are present, the overall pattern indicates growing profitability, increased efficiency in asset use, and improved returns on assets, suggesting strengthening financial health and operational efficiency during the covered time frame.

The analysis of the quarterly financial indicators reveals several noteworthy trends and patterns over the observed periods.

Tax Burden (ratio)

The Tax Burden shows a notable increase commencing from March 31, 2021, starting at 0.1 and rising steadily to approximately 0.8 by the end of 2023. This level remains relatively stable with a slight upward bias through to June 30, 2025, maintaining around 0.81. The data suggests a stabilization of tax burdens at a higher level compared to earlier periods with missing data.

Interest Burden (ratio)

The Interest Burden demonstrates an overall improving trend from March 31, 2021, when the ratio was 0.61, to a peak near 0.91 by the end of 2021 and sustaining close to this high level through the end of 2023. From 2024 onwards, there is a gradual decline, reaching 0.76 by September 30, 2024, and further down to 0.8 and 0.76 by mid-2025. This could indicate a reduction in interest expenses or improved efficiency in managing interest-bearing liabilities during the earlier period, followed by mild easing thereafter.

EBIT Margin (%)

The EBIT margin shows significant fluctuation through the quarters. Beginning with a low of 13.58% in December 31, 2020, it increases substantially, hitting a range around 25% to 30% by early 2022. Growth continues, peaking near 36.17% by March 31, 2025, indicating improved operating profitability. Despite some quarter-to-quarter variability, there is a clear upward trajectory in operating margin over the analyzed timeframe, reflecting enhanced earning efficiency excluding interest and taxes.

Asset Turnover (ratio)

Asset Turnover presents a consistent upward trend over the periods from a low of 0.24 on June 30, 2020, rising steadily to approximately 0.89 by June 30, 2025. This suggests increasing efficient use of assets to generate revenue, with the ratio almost quadrupling from its earlier low points. Slight declines or plateaus observed occasionally do not disrupt the general growth trend.

Return on Assets (ROA) (%)

Return on Assets exhibits significant growth from a minimal 0.27% in March 31, 2021, to a peak of 21.23% at March 31, 2025. There is a variable but generally positive trend with intermittent increases and reductions, such as a notable dip from mid-2025 levels. This pattern indicates improving overall profitability relative to total assets, reflecting the combined effects of increased operating margins and asset utilization.

In summary, the data indicates strengthening financial performance characterized by rising profitability margins, improved asset efficiency, and stable to improving burden ratios. The ongoing enhancement in EBIT margin and ROA, underpinned by efficient asset turnover, reflects effective operational management and asset utilization. Meanwhile, the tax and interest burden ratios reveal a balance of tax obligations with fluctuating but generally manageable interest expenses over time.

Analysis of the financial ratios over the specified periods reveals several notable trends and fluctuations.

Tax Burden

The tax burden ratio exhibits an overall upward trend from 0.10 in the early 2020 periods to approximately 0.8 in the later periods from 2022 onward. From March 31, 2021, it remains relatively stable, fluctuating slightly between 0.78 and 0.82 up to June 30, 2025. This suggests that the effective tax rate as a proportion of pre-tax earnings has generally increased and then stabilized at a higher level.

Interest Burden

The interest burden ratio shows improvement over time, increasing from 0.61 in early 2020 to a peak close to 0.91 in the end of 2021 and early 2022. After this peak, it gradually decreases, falling to about 0.76 by June 30, 2025. This pattern implies reduced interest expenses relative to earnings before interest and taxes initially, followed by a slight rise in interest impact toward the most recent periods.

EBIT Margin

The EBIT margin percentage demonstrates significant volatility initially, rising sharply from 13.58% in late 2020 to above 30% around the end of 2022 and early 2023. After peaking around 36.17% in March 2025, the margin declines somewhat to 31.22% by June 2025. This indicates periods of strong operational profitability with some recent moderation.

Net Profit Margin

The net profit margin percentage experiences pronounced growth from a minimal 0.87% at the start of the available data, moving upwards steadily to peaks over 25% at certain points in 2023 and again near 25% by March 2025. There are fluctuations, but the general trajectory is a marked improvement in net profitability over the analyzed periods, albeit with some decline later in 2025 to 19.23%.

In summary, the data indicate an improvement in operational efficiency and profitability over time, as reflected in rising EBIT and net profit margins. The tax burden has increased and stabilized at a relatively high level, while the interest burden initially improved but showed some weakening in recent periods. The trends suggest effective cost management and enhanced earnings quality over the long term despite some recent pressures on interest expense and margin moderation.