Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Booking Holdings Inc. (NASDAQ:BKNG)

Analysis of Solvency Ratios

Beginner level

Solvency Ratios (Summary)

Booking Holdings Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Debt Ratios
Debt to equity 2.46 1.45 0.98 0.85 0.73
Debt to equity (including operating lease liability) 2.56 1.56 0.98 0.85 0.73
Debt to capital 0.71 0.59 0.50 0.46 0.42
Debt to capital (including operating lease liability) 0.72 0.61 0.50 0.46 0.42
Debt to assets 0.55 0.40 0.38 0.37 0.36
Debt to assets (including operating lease liability) 0.57 0.43 0.38 0.37 0.36
Financial leverage 4.47 3.61 2.58 2.26 2.02
Coverage Ratios
Interest coverage 2.59 23.40 18.97 18.32 14.05
Fixed charge coverage 2.03 14.27 12.57 12.77 9.83

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Booking Holdings Inc.’s debt to equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Booking Holdings Inc.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Booking Holdings Inc.’s debt to capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Booking Holdings Inc.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Booking Holdings Inc.’s debt to assets ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Booking Holdings Inc.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Booking Holdings Inc.’s financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Booking Holdings Inc.’s interest coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Booking Holdings Inc.’s fixed charge coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Equity

Booking Holdings Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Convertible debt 985  988  —  711  968 
Long-term debt 11,029  7,640  8,649  8,810  6,171 
Total debt 12,014  8,628  8,649  9,521  7,138 
 
Stockholders’ equity 4,893  5,933  8,785  11,261  9,820 
Solvency Ratio
Debt to equity1 2.46 1.45 0.98 0.85 0.73
Benchmarks
Debt to Equity, Competitors2
McDonald’s Corp.
Starbucks Corp. 8.07 0.72 0.61
Debt to Equity, Sector
Travel & Leisure 13.30 3.20 2.72
Debt to Equity, Industry
Consumer Services 1.22 1.24 1.27 1.10 0.99

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27).

1 2020 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 12,014 ÷ 4,893 = 2.46

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Booking Holdings Inc.’s debt to equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Equity (including Operating Lease Liability)

Booking Holdings Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Convertible debt 985  988  —  711  968 
Long-term debt 11,029  7,640  8,649  8,810  6,171 
Total debt 12,014  8,628  8,649  9,521  7,138 
Current operating lease liabilities (classified in Accrued expenses and other current liabilities) 159  161  —  —  — 
Non-current operating lease liabilities 366  462  —  —  — 
Total debt (including operating lease liability) 12,539  9,251  8,649  9,521  7,138 
 
Stockholders’ equity 4,893  5,933  8,785  11,261  9,820 
Solvency Ratio
Debt to equity (including operating lease liability)1 2.56 1.56 0.98 0.85 0.73
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
McDonald’s Corp.
Starbucks Corp. 8.07 0.72 0.61
Debt to Equity (including Operating Lease Liability), Sector
Travel & Leisure 13.30 3.20 2.72
Debt to Equity (including Operating Lease Liability), Industry
Consumer Services 1.53 1.39 1.27 1.10 0.99

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27).

1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 12,539 ÷ 4,893 = 2.56

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Booking Holdings Inc.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Capital

Booking Holdings Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Convertible debt 985  988  —  711  968 
Long-term debt 11,029  7,640  8,649  8,810  6,171 
Total debt 12,014  8,628  8,649  9,521  7,138 
Stockholders’ equity 4,893  5,933  8,785  11,261  9,820 
Total capital 16,907  14,561  17,434  20,781  16,958 
Solvency Ratio
Debt to capital1 0.71 0.59 0.50 0.46 0.42
Benchmarks
Debt to Capital, Competitors2
McDonald’s Corp. 1.26 1.32 1.25 1.12 1.09
Starbucks Corp. 1.96 2.26 0.89 0.42 0.38
Debt to Capital, Sector
Travel & Leisure 1.20 1.19 0.93 0.76 0.73
Debt to Capital, Industry
Consumer Services 0.55 0.55 0.56 0.52 0.50

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 12,014 ÷ 16,907 = 0.71

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Booking Holdings Inc.’s debt to capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Capital (including Operating Lease Liability)

Booking Holdings Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Convertible debt 985  988  —  711  968 
Long-term debt 11,029  7,640  8,649  8,810  6,171 
Total debt 12,014  8,628  8,649  9,521  7,138 
Current operating lease liabilities (classified in Accrued expenses and other current liabilities) 159  161  —  —  — 
Non-current operating lease liabilities 366  462  —  —  — 
Total debt (including operating lease liability) 12,539  9,251  8,649  9,521  7,138 
Stockholders’ equity 4,893  5,933  8,785  11,261  9,820 
Total capital (including operating lease liability) 17,432  15,184  17,434  20,781  16,958 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.72 0.61 0.50 0.46 0.42
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
McDonald’s Corp. 1.18 1.21 1.25 1.12 1.09
Starbucks Corp. 1.46 2.26 0.89 0.42 0.38
Debt to Capital (including Operating Lease Liability), Sector
Travel & Leisure 1.14 1.14 0.93 0.76 0.73
Debt to Capital (including Operating Lease Liability), Industry
Consumer Services 0.60 0.58 0.56 0.52 0.50

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27).

1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 12,539 ÷ 17,432 = 0.72

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Booking Holdings Inc.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Assets

Booking Holdings Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Convertible debt 985  988  —  711  968 
Long-term debt 11,029  7,640  8,649  8,810  6,171 
Total debt 12,014  8,628  8,649  9,521  7,138 
 
Total assets 21,874  21,402  22,687  25,451  19,839 
Solvency Ratio
Debt to assets1 0.55 0.40 0.38 0.37 0.36
Benchmarks
Debt to Assets, Competitors2
McDonald’s Corp. 0.71 0.72 0.95 0.87 0.84
Starbucks Corp. 0.54 0.58 0.39 0.27 0.25
Debt to Assets, Sector
Travel & Leisure 0.63 0.61 0.62 0.58 0.56
Debt to Assets, Industry
Consumer Services 0.33 0.34 0.37 0.34 0.32

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27).

1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 12,014 ÷ 21,874 = 0.55

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Booking Holdings Inc.’s debt to assets ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Assets (including Operating Lease Liability)

Booking Holdings Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Convertible debt 985  988  —  711  968 
Long-term debt 11,029  7,640  8,649  8,810  6,171 
Total debt 12,014  8,628  8,649  9,521  7,138 
Current operating lease liabilities (classified in Accrued expenses and other current liabilities) 159  161  —  —  — 
Non-current operating lease liabilities 366  462  —  —  — 
Total debt (including operating lease liability) 12,539  9,251  8,649  9,521  7,138 
 
Total assets 21,874  21,402  22,687  25,451  19,839 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.57 0.43 0.38 0.37 0.36
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
McDonald’s Corp. 0.98 1.00 0.95 0.87 0.84
Starbucks Corp. 0.84 0.58 0.39 0.27 0.25
Debt to Assets (including Operating Lease Liability), Sector
Travel & Leisure 0.86 0.77 0.62 0.58 0.56
Debt to Assets (including Operating Lease Liability), Industry
Consumer Services 0.41 0.39 0.37 0.34 0.32

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27).

1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 12,539 ÷ 21,874 = 0.57

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Booking Holdings Inc.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.

Financial Leverage

Booking Holdings Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Total assets 21,874  21,402  22,687  25,451  19,839 
Stockholders’ equity 4,893  5,933  8,785  11,261  9,820 
Solvency Ratio
Financial leverage1 4.47 3.61 2.58 2.26 2.02
Benchmarks
Financial Leverage, Competitors2
McDonald’s Corp.
Starbucks Corp. 20.66 2.64 2.44
Financial Leverage, Sector
Travel & Leisure 21.55 5.48 4.83
Financial Leverage, Industry
Consumer Services 3.75 3.61 3.48 3.19 3.09

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27).

1 2020 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 21,874 ÷ 4,893 = 4.47

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Booking Holdings Inc.’s financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Interest Coverage

Booking Holdings Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 59  4,865  3,998  2,341  2,135 
Add: Income tax expense 508  1,093  837  2,058  578 
Add: Interest expense 356  266  269  254  208 
Earnings before interest and tax (EBIT) 923  6,224  5,104  4,652  2,921 
Solvency Ratio
Interest coverage1 2.59 23.40 18.97 18.32 14.05
Benchmarks
Interest Coverage, Competitors2
McDonald’s Corp. 6.04 8.15 8.97 10.31 8.76
Starbucks Corp. 3.66 14.49 34.94 47.68 52.64
Interest Coverage, Sector
Travel & Leisure 4.91 11.73 13.98 14.64 12.74
Interest Coverage, Industry
Consumer Services 6.20 6.64 7.01 8.27 8.92

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27).

1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 923 ÷ 356 = 2.59

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Booking Holdings Inc.’s interest coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Fixed Charge Coverage

Booking Holdings Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 59  4,865  3,998  2,341  2,135 
Add: Income tax expense 508  1,093  837  2,058  578 
Add: Interest expense 356  266  269  254  208 
Earnings before interest and tax (EBIT) 923  6,224  5,104  4,652  2,921 
Add: Operating lease expense 194  183  149  120  100 
Earnings before fixed charges and tax 1,117  6,407  5,253  4,772  3,021 
 
Interest expense 356  266  269  254  208 
Operating lease expense 194  183  149  120  100 
Fixed charges 550  449  418  374  307 
Solvency Ratio
Fixed charge coverage1 2.03 14.27 12.57 12.77 9.83
Benchmarks
Fixed Charge Coverage, Competitors2
McDonald’s Corp. 3.28 3.94 4.12 4.34 3.54
Starbucks Corp. 1.58 3.52 4.62 4.38 4.58
Fixed Charge Coverage, Sector
Travel & Leisure 2.50 4.73 5.08 5.10 4.30
Fixed Charge Coverage, Industry
Consumer Services 3.67 3.87 3.98 4.49 4.73

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27).

1 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,117 ÷ 550 = 2.03

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Booking Holdings Inc.’s fixed charge coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.