Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Solvency Ratios (Summary)
Booking Holdings Inc., solvency ratios
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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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. |