Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Booking Holdings Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
An analysis of the solvency ratios indicates a systematic increase in financial leverage and a transition toward a more debt-heavy capital structure over the observed period. There is a consistent upward trajectory in debt-related ratios, suggesting a strategic shift in how the organization finances its operations and assets.
- Debt-to-Equity and Financial Leverage
- A period of rapid escalation is observed between March 2022 and March 2023. The debt-to-equity ratio rose sharply from 2.23 to 11.29, while financial leverage increased from 5.12 to 23.47. This aggressive expansion suggests a significant reduction in equity relative to total debt, potentially driven by substantial share repurchases or a sharp increase in borrowing.
- Debt-to-Capital Trends
- The debt-to-capital ratio demonstrates a steady long-term increase, moving from 0.69 in March 2022 to 2.08 by September 2026. A critical threshold was crossed around June 2023, where the ratio exceeded 1.0, indicating that debt became the primary component of the capital structure. This trend remained consistent regardless of whether operating lease liabilities were included in the calculation.
- Asset Financing and Solvency
- The debt-to-assets ratio shows a gradual but persistent climb, starting at 0.44 in March 2022 and reaching 0.71 by September 2026. This indicates that a growing proportion of total assets is financed through debt, which increases the overall financial risk profile and reduces the margin of safety for creditors.
- Interest Coverage and Debt Servicing
- The interest coverage ratio exhibits significant volatility. After peaking at 11.24 in September 2022, the ratio entered a period of decline, reaching a low of 4.16 in June 2025. This compression suggests a period of increased interest expense or reduced operating income relative to debt obligations. However, a recovery is observed in 2026, with the ratio climbing back to 9.31 by September 2026, indicating a regained capacity to service interest payments despite the higher total debt load.
In summary, the organization has shifted toward a high-leverage model. While the increase in debt-to-asset and debt-to-capital ratios points toward higher solvency risk, the recovery in the interest coverage ratio suggests that operational cash flows remain sufficient to support the expanded debt obligations.
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Debt to Equity
Booking Holdings Inc., debt to equity calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt | 1,987) | 2,000) | 3,015) | 1,880) | 999) | 999) | 655) | 1,745) | 2,419) | 3,447) | 3,462) | 1,961) | 1,913) | 855) | 854) | 500) | 1,234) | 1,283) | 1,333) | ||||||
| Long-term debt | 18,074) | 18,180) | 15,398) | 16,856) | 15,997) | 17,473) | 15,369) | 14,853) | 13,793) | 13,361) | 13,438) | 12,223) | 11,856) | 13,198) | 11,272) | 11,985) | 7,950) | 8,190) | 8,435) | ||||||
| Total debt | 20,061) | 20,180) | 18,413) | 18,736) | 16,996) | 18,472) | 16,024) | 16,598) | 16,212) | 16,808) | 16,900) | 14,184) | 13,769) | 14,053) | 12,126) | 12,485) | 9,184) | 9,473) | 9,768) | ||||||
| Stockholders’ equity (deficit) | (10,407) | (10,783) | (8,724) | (5,578) | (4,736) | (6,657) | (6,112) | (4,020) | (3,653) | (4,276) | (4,052) | (2,744) | (625) | (665) | 1,074) | 2,782) | 3,670) | 4,002) | 4,373) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 11.29 | 4.49 | 2.50 | 2.37 | 2.23 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| Airbnb Inc. | 0.25 | 0.32 | 0.32 | 0.24 | 0.23 | 0.26 | 0.25 | 0.24 | 0.23 | 0.25 | 0.25 | 0.24 | 0.22 | 0.39 | 0.38 | 0.36 | 0.36 | 0.38 | 0.42 | ||||||
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| DoorDash, Inc. | 0.25 | 0.27 | 0.27 | 0.27 | 0.29 | 0.30 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 20,061 ÷ -10,407 = —
2 Click competitor name to see calculations.
The financial trajectory of the company indicates a significant shift in its solvency profile, characterized by a steady increase in total debt and a transition from positive stockholders' equity to a substantial deficit.
- Total Debt Trends
- A consistent upward trend in total debt is observed over the analyzed period. Total debt rose from 9,768 million US$ in March 2022 to 20,061 million US$ by September 2026. This represents a more than twofold increase in total liabilities, with notable accelerations occurring between December 2022 and March 2024, and again throughout 2025 and 2026.
- Stockholders' Equity Erosion
- Stockholders' equity experienced a continuous and severe decline, moving from a positive position of 4,373 million US$ in March 2022 to a deficit of 10,407 million US$ by September 2026. The equity position first turned negative in June 2023, and the deficit expanded aggressively thereafter, indicating that liabilities have significantly exceeded total assets.
- Debt to Equity Ratio Interpretation
- The debt to equity ratio exhibited a rapid escalation during the initial phases of the period, rising from 2.23 in March 2022 to 11.29 by March 2023. Following this peak, the ratio became mathematically inapplicable as stockholders' equity transitioned into a deficit. The combination of rising debt and falling equity suggests a strategic shift toward higher leverage and a reduction in the company's equity cushion.
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Debt to Equity (including Operating Lease Liability)
Booking Holdings Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt | 1,987) | 2,000) | 3,015) | 1,880) | 999) | 999) | 655) | 1,745) | 2,419) | 3,447) | 3,462) | 1,961) | 1,913) | 855) | 854) | 500) | 1,234) | 1,283) | 1,333) | ||||||
| Long-term debt | 18,074) | 18,180) | 15,398) | 16,856) | 15,997) | 17,473) | 15,369) | 14,853) | 13,793) | 13,361) | 13,438) | 12,223) | 11,856) | 13,198) | 11,272) | 11,985) | 7,950) | 8,190) | 8,435) | ||||||
| Total debt | 20,061) | 20,180) | 18,413) | 18,736) | 16,996) | 18,472) | 16,024) | 16,598) | 16,212) | 16,808) | 16,900) | 14,184) | 13,769) | 14,053) | 12,126) | 12,485) | 9,184) | 9,473) | 9,768) | ||||||
| Non-current operating lease liabilities | 515) | 514) | 530) | 557) | 533) | 517) | 476) | 483) | 508) | 529) | 556) | 599) | 547) | 533) | 539) | 552) | 286) | 323) | 349) | ||||||
| Total debt (including operating lease liability) | 20,576) | 20,694) | 18,943) | 19,293) | 17,529) | 18,989) | 16,500) | 17,081) | 16,720) | 17,337) | 17,456) | 14,783) | 14,316) | 14,586) | 12,665) | 13,037) | 9,470) | 9,796) | 10,117) | ||||||
| Stockholders’ equity (deficit) | (10,407) | (10,783) | (8,724) | (5,578) | (4,736) | (6,657) | (6,112) | (4,020) | (3,653) | (4,276) | (4,052) | (2,744) | (625) | (665) | 1,074) | 2,782) | 3,670) | 4,002) | 4,373) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 11.79 | 4.69 | 2.58 | 2.45 | 2.31 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | 2.28 | 2.46 | 2.18 | 1.79 | 1.55 | 1.35 | 1.33 | 1.24 | 1.24 | 1.15 | 1.24 | 1.32 | 1.39 | 1.41 | 1.52 | 1.58 | 1.60 | 1.68 | 1.67 | ||||||
| DoorDash, Inc. | 0.31 | 0.33 | 0.32 | 0.33 | 0.34 | 0.36 | 0.06 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.07 | 0.07 | 0.09 | ||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit)
= 20,576 ÷ -10,407 = —
2 Click competitor name to see calculations.
An analysis of the solvency metrics reveals a significant deterioration in the capital structure over the observed period. The combination of increasing total debt and a declining equity base has shifted the company from a positive equity position to a substantial stockholders' deficit.
- Total Debt Trends
- Total debt, including operating lease liabilities, exhibited a consistent upward trajectory. Beginning at 10,117 million US dollars in March 2022, liabilities grew to 20,576 million US dollars by September 2026. A notable increase occurred between September 2022 and December 2022, where debt rose from 9,470 million to 13,037 million US dollars, establishing a higher baseline for subsequent quarters.
- Stockholders' Equity Evolution
- Stockholders' equity experienced a continuous and steep decline, transitioning from a positive balance of 4,373 million US dollars in March 2022 to a deficit of 10,407 million US dollars by September 2026. The transition into a deficit occurred in June 2023. Following this inflection point, the deficit expanded progressively, reaching a peak deficit of 10,783 million US dollars in June 2026.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio increased sharply during the initial phases of the period, rising from 2.31 in March 2022 to 11.79 by March 2023. This rapid escalation reflects the simultaneous increase in debt and the erosion of equity. Once the stockholders' equity became negative in June 2023, the ratio no longer provided a conventional solvency measurement, as the company entered a state of negative net worth, indicating that total liabilities exceeded total assets.
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Debt to Capital
Booking Holdings Inc., debt to capital calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt | 1,987) | 2,000) | 3,015) | 1,880) | 999) | 999) | 655) | 1,745) | 2,419) | 3,447) | 3,462) | 1,961) | 1,913) | 855) | 854) | 500) | 1,234) | 1,283) | 1,333) | ||||||
| Long-term debt | 18,074) | 18,180) | 15,398) | 16,856) | 15,997) | 17,473) | 15,369) | 14,853) | 13,793) | 13,361) | 13,438) | 12,223) | 11,856) | 13,198) | 11,272) | 11,985) | 7,950) | 8,190) | 8,435) | ||||||
| Total debt | 20,061) | 20,180) | 18,413) | 18,736) | 16,996) | 18,472) | 16,024) | 16,598) | 16,212) | 16,808) | 16,900) | 14,184) | 13,769) | 14,053) | 12,126) | 12,485) | 9,184) | 9,473) | 9,768) | ||||||
| Stockholders’ equity (deficit) | (10,407) | (10,783) | (8,724) | (5,578) | (4,736) | (6,657) | (6,112) | (4,020) | (3,653) | (4,276) | (4,052) | (2,744) | (625) | (665) | 1,074) | 2,782) | 3,670) | 4,002) | 4,373) | ||||||
| Total capital | 9,654) | 9,397) | 9,689) | 13,158) | 12,260) | 11,815) | 9,912) | 12,578) | 12,559) | 12,532) | 12,848) | 11,440) | 13,144) | 13,388) | 13,200) | 15,267) | 12,854) | 13,475) | 14,141) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 2.08 | 2.15 | 1.90 | 1.42 | 1.39 | 1.56 | 1.62 | 1.32 | 1.29 | 1.34 | 1.32 | 1.24 | 1.05 | 1.05 | 0.92 | 0.82 | 0.71 | 0.70 | 0.69 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| Airbnb Inc. | 0.20 | 0.24 | 0.24 | 0.20 | 0.19 | 0.20 | 0.20 | 0.19 | 0.19 | 0.20 | 0.20 | 0.20 | 0.18 | 0.28 | 0.27 | 0.26 | 0.26 | 0.27 | 0.30 | ||||||
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| DoorDash, Inc. | 0.20 | 0.22 | 0.21 | 0.21 | 0.22 | 0.23 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| McDonald’s Corp. | 1.01 | 1.03 | 1.03 | 1.05 | 1.06 | 1.07 | 1.10 | 1.11 | 1.15 | 1.14 | 1.15 | 1.14 | 1.15 | 1.16 | 1.18 | 1.20 | 1.23 | 1.23 | 1.21 | ||||||
| Starbucks Corp. | 2.37 | 2.28 | 2.09 | 2.01 | 1.80 | 1.96 | 1.92 | 1.92 | 2.04 | 2.18 | 2.35 | 2.08 | 2.18 | 2.22 | 2.39 | 2.37 | 2.34 | 2.21 | 2.34 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 20,061 ÷ 9,654 = 2.08
2 Click competitor name to see calculations.
An analysis of the solvency metrics reveals a consistent and significant increase in leverage over the period from March 2022 to September 2026. The capital structure has transitioned from a relatively balanced position toward an increasingly debt-dependent framework, characterized by a simultaneous rise in total liabilities and a reduction in the total capital base.
- Total Debt Expansion
- Total debt exhibits a strong upward trajectory, increasing from 9,768 million USD in March 2022 to 20,061 million USD by September 2026. Significant increases are observed between September and December 2022, as well as a sustained climb throughout 2024 and 2025, resulting in the debt load more than doubling over the observed timeframe.
- Total Capital Contraction
- Total capital demonstrates a general declining trend, falling from 14,141 million USD in March 2022 to 9,654 million USD in September 2026. Notable contractions occurred in December 2023 and March 2026, indicating a shrinking capital base that occurred concurrently with the accumulation of debt.
- Debt to Capital Ratio Escalation
- The debt to capital ratio climbed steadily from 0.69 in March 2022 to 2.08 by September 2026. The ratio surpassed the 1.00 threshold in June 2023, indicating a shift where total debt exceeded total capital. The most pronounced acceleration occurred in the first half of 2026, where the ratio rose from 1.90 in March to 2.15 in June, signaling an intensified solvency risk and a highly leveraged financial position.
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Debt to Capital (including Operating Lease Liability)
Booking Holdings Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt | 1,987) | 2,000) | 3,015) | 1,880) | 999) | 999) | 655) | 1,745) | 2,419) | 3,447) | 3,462) | 1,961) | 1,913) | 855) | 854) | 500) | 1,234) | 1,283) | 1,333) | ||||||
| Long-term debt | 18,074) | 18,180) | 15,398) | 16,856) | 15,997) | 17,473) | 15,369) | 14,853) | 13,793) | 13,361) | 13,438) | 12,223) | 11,856) | 13,198) | 11,272) | 11,985) | 7,950) | 8,190) | 8,435) | ||||||
| Total debt | 20,061) | 20,180) | 18,413) | 18,736) | 16,996) | 18,472) | 16,024) | 16,598) | 16,212) | 16,808) | 16,900) | 14,184) | 13,769) | 14,053) | 12,126) | 12,485) | 9,184) | 9,473) | 9,768) | ||||||
| Non-current operating lease liabilities | 515) | 514) | 530) | 557) | 533) | 517) | 476) | 483) | 508) | 529) | 556) | 599) | 547) | 533) | 539) | 552) | 286) | 323) | 349) | ||||||
| Total debt (including operating lease liability) | 20,576) | 20,694) | 18,943) | 19,293) | 17,529) | 18,989) | 16,500) | 17,081) | 16,720) | 17,337) | 17,456) | 14,783) | 14,316) | 14,586) | 12,665) | 13,037) | 9,470) | 9,796) | 10,117) | ||||||
| Stockholders’ equity (deficit) | (10,407) | (10,783) | (8,724) | (5,578) | (4,736) | (6,657) | (6,112) | (4,020) | (3,653) | (4,276) | (4,052) | (2,744) | (625) | (665) | 1,074) | 2,782) | 3,670) | 4,002) | 4,373) | ||||||
| Total capital (including operating lease liability) | 10,169) | 9,911) | 10,219) | 13,715) | 12,793) | 12,332) | 10,388) | 13,061) | 13,067) | 13,061) | 13,404) | 12,039) | 13,691) | 13,921) | 13,739) | 15,819) | 13,140) | 13,798) | 14,490) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 2.02 | 2.09 | 1.85 | 1.41 | 1.37 | 1.54 | 1.59 | 1.31 | 1.28 | 1.33 | 1.30 | 1.23 | 1.05 | 1.05 | 0.92 | 0.82 | 0.72 | 0.71 | 0.70 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | 0.70 | 0.71 | 0.69 | 0.64 | 0.61 | 0.58 | 0.57 | 0.55 | 0.55 | 0.54 | 0.55 | 0.57 | 0.58 | 0.58 | 0.60 | 0.61 | 0.62 | 0.63 | 0.62 | ||||||
| DoorDash, Inc. | 0.24 | 0.25 | 0.24 | 0.25 | 0.26 | 0.27 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.06 | 0.08 | ||||||
| Starbucks Corp. | 1.52 | 1.53 | 1.49 | 1.44 | 1.38 | 1.41 | 1.41 | 1.41 | 1.46 | 1.51 | 1.54 | 1.48 | 1.52 | 1.53 | 1.57 | 1.58 | 1.57 | 1.54 | 1.55 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 20,576 ÷ 10,169 = 2.02
2 Click competitor name to see calculations.
A significant deterioration in the solvency profile is evident over the analyzed period, characterized by a simultaneous increase in total debt and a contraction in total capital. This divergence has resulted in a substantial escalation of the debt-to-capital ratio, indicating a shift toward a more highly leveraged capital structure.
- Total Debt Trends
- Total debt, inclusive of operating lease liabilities, exhibited a consistent long-term upward trajectory. Starting at 10,117 million USD in March 2022, the figure rose to 20,576 million USD by September 2026. Notable increments occurred between September 2022 and December 2022, and again between December 2023 and March 2024, reflecting a doubling of the total debt burden over the observed timeframe.
- Total Capital Contraction
- Total capital followed an inverse trend, declining from 14,490 million USD in March 2022 to 10,169 million USD by September 2026. This reduction occurred despite the concurrent increase in debt, suggesting a significant decrease in the equity component of the capital structure. Pronounced drops were observed in December 2023 and March 2025, which further eroded the capital base.
- Debt to Capital Ratio Analysis
- The debt-to-capital ratio experienced a steady and aggressive increase, rising from 0.70 in March 2022 to 2.02 in September 2026. The ratio surpassed the 1.00 threshold in June 2023, signaling that total debt had exceeded total capital. The acceleration continued through 2025 and 2026, peaking at 2.09 in June 2026. This trend indicates a heightened reliance on borrowed funds and an intensified solvency risk as the ratio nearly tripled over the period.
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Debt to Assets
Booking Holdings Inc., debt to assets calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt | 1,987) | 2,000) | 3,015) | 1,880) | 999) | 999) | 655) | 1,745) | 2,419) | 3,447) | 3,462) | 1,961) | 1,913) | 855) | 854) | 500) | 1,234) | 1,283) | 1,333) | ||||||
| Long-term debt | 18,074) | 18,180) | 15,398) | 16,856) | 15,997) | 17,473) | 15,369) | 14,853) | 13,793) | 13,361) | 13,438) | 12,223) | 11,856) | 13,198) | 11,272) | 11,985) | 7,950) | 8,190) | 8,435) | ||||||
| Total debt | 20,061) | 20,180) | 18,413) | 18,736) | 16,996) | 18,472) | 16,024) | 16,598) | 16,212) | 16,808) | 16,900) | 14,184) | 13,769) | 14,053) | 12,126) | 12,485) | 9,184) | 9,473) | 9,768) | ||||||
| Total assets | 28,264) | 29,682) | 27,720) | 29,264) | 28,752) | 30,684) | 27,191) | 27,708) | 27,978) | 28,541) | 27,728) | 24,342) | 25,635) | 26,558) | 25,206) | 25,361) | 22,063) | 24,493) | 22,384) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.71 | 0.68 | 0.66 | 0.64 | 0.59 | 0.60 | 0.59 | 0.60 | 0.58 | 0.59 | 0.61 | 0.58 | 0.54 | 0.53 | 0.48 | 0.49 | 0.42 | 0.39 | 0.44 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| Airbnb Inc. | 0.10 | 0.09 | 0.09 | 0.09 | 0.09 | 0.07 | 0.08 | 0.10 | 0.09 | 0.08 | 0.08 | 0.10 | 0.09 | 0.09 | 0.10 | 0.12 | 0.12 | 0.10 | 0.12 | ||||||
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| DoorDash, Inc. | 0.13 | 0.14 | 0.14 | 0.14 | 0.15 | 0.16 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| McDonald’s Corp. | 0.66 | 0.67 | 0.67 | 0.67 | 0.68 | 0.70 | 0.69 | 0.70 | 0.70 | 0.72 | 0.70 | 0.70 | 0.72 | 0.71 | 0.71 | 0.71 | 0.72 | 0.70 | 0.67 | ||||||
| Starbucks Corp. | 0.47 | 0.49 | 0.50 | 0.50 | 0.51 | 0.49 | 0.49 | 0.50 | 0.52 | 0.53 | 0.51 | 0.52 | 0.54 | 0.54 | 0.53 | 0.54 | 0.54 | 0.55 | 0.51 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 20,061 ÷ 28,264 = 0.71
2 Click competitor name to see calculations.
The solvency profile exhibits a consistent upward trend in the debt-to-assets ratio over the analyzed period. Beginning at 0.44 in March 2022, the ratio climbed steadily to reach 0.71 by September 2026, indicating a progressive increase in the proportion of total assets financed through debt.
- Debt Accumulation Trends
- Total debt experienced significant growth, rising from 9,768 million USD in March 2022 to 20,061 million USD by September 2026. Although short-term fluctuations occurred, the overall trajectory was aggressively positive, with substantial increases noted between September 2022 and December 2022, and another sustained rise starting in March 2024.
- Asset Base Dynamics
- Total assets demonstrated greater volatility compared to debt. Starting at 22,384 million USD in March 2022, assets peaked at 30,684 million USD in June 2025 before contracting to 28,264 million USD by September 2026. The fact that asset growth did not keep pace with debt expansion is the primary driver of the increasing solvency ratio.
- Solvency Ratio Analysis
- The debt-to-assets ratio surpassed the 0.50 threshold in June 2023 and exceeded 0.60 in March 2024. A period of relative stabilization occurred between June 2024 and March 2025, where the ratio hovered around 0.59 to 0.60. However, a sharp acceleration is observed in the final year, with the ratio moving from 0.66 in March 2026 to 0.71 in September 2026, reflecting an increased reliance on leverage to support the balance sheet.
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Debt to Assets (including Operating Lease Liability)
Booking Holdings Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt | 1,987) | 2,000) | 3,015) | 1,880) | 999) | 999) | 655) | 1,745) | 2,419) | 3,447) | 3,462) | 1,961) | 1,913) | 855) | 854) | 500) | 1,234) | 1,283) | 1,333) | ||||||
| Long-term debt | 18,074) | 18,180) | 15,398) | 16,856) | 15,997) | 17,473) | 15,369) | 14,853) | 13,793) | 13,361) | 13,438) | 12,223) | 11,856) | 13,198) | 11,272) | 11,985) | 7,950) | 8,190) | 8,435) | ||||||
| Total debt | 20,061) | 20,180) | 18,413) | 18,736) | 16,996) | 18,472) | 16,024) | 16,598) | 16,212) | 16,808) | 16,900) | 14,184) | 13,769) | 14,053) | 12,126) | 12,485) | 9,184) | 9,473) | 9,768) | ||||||
| Non-current operating lease liabilities | 515) | 514) | 530) | 557) | 533) | 517) | 476) | 483) | 508) | 529) | 556) | 599) | 547) | 533) | 539) | 552) | 286) | 323) | 349) | ||||||
| Total debt (including operating lease liability) | 20,576) | 20,694) | 18,943) | 19,293) | 17,529) | 18,989) | 16,500) | 17,081) | 16,720) | 17,337) | 17,456) | 14,783) | 14,316) | 14,586) | 12,665) | 13,037) | 9,470) | 9,796) | 10,117) | ||||||
| Total assets | 28,264) | 29,682) | 27,720) | 29,264) | 28,752) | 30,684) | 27,191) | 27,708) | 27,978) | 28,541) | 27,728) | 24,342) | 25,635) | 26,558) | 25,206) | 25,361) | 22,063) | 24,493) | 22,384) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.73 | 0.70 | 0.68 | 0.66 | 0.61 | 0.62 | 0.61 | 0.62 | 0.60 | 0.61 | 0.63 | 0.61 | 0.56 | 0.55 | 0.50 | 0.51 | 0.43 | 0.40 | 0.45 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | 0.59 | 0.61 | 0.60 | 0.56 | 0.54 | 0.52 | 0.51 | 0.49 | 0.50 | 0.48 | 0.49 | 0.50 | 0.51 | 0.51 | 0.53 | 0.54 | 0.55 | 0.55 | 0.55 | ||||||
| DoorDash, Inc. | 0.16 | 0.17 | 0.17 | 0.17 | 0.18 | 0.19 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | ||||||
| Starbucks Corp. | 0.79 | 0.80 | 0.79 | 0.83 | 0.83 | 0.82 | 0.81 | 0.82 | 0.84 | 0.86 | 0.84 | 0.84 | 0.85 | 0.86 | 0.84 | 0.85 | 0.85 | 0.86 | 0.82 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 20,576 ÷ 28,264 = 0.73
2 Click competitor name to see calculations.
The analysis reveals a consistent increase in the leverage profile of the organization over the observed period from March 2022 to September 2026. The debt-to-assets ratio, which integrates operating lease liabilities, indicates a systemic shift toward a higher reliance on borrowed capital relative to the total asset base.
- Debt to Assets Ratio Trajectory
- The ratio began at 0.45 in March 2022 and reached a period low of 0.40 in June 2022. Following this point, a sustained upward trend is observed, with the ratio surpassing 0.60 by December 2023 and continuing to climb to 0.73 by September 2026. This trajectory represents a significant increase in the proportion of assets financed through debt.
- Total Debt Accumulation
- Total debt, including operating lease liabilities, more than doubled over the analyzed timeframe, rising from 10,117 million USD in March 2022 to 20,576 million USD by September 2026. Notable surges in debt levels were recorded between September and December 2022, and again during the first quarter of 2024, where debt rose from 14,783 million USD to 17,456 million USD.
- Asset Base Dynamics
- Total assets grew from 22,384 million USD in March 2022 to 28,264 million USD in September 2026. While the asset base expanded, the growth was not commensurate with the increase in total debt. Assets exhibited periodic fluctuations, peaking at 30,684 million USD in June 2025 before settling into a range between 27,720 million USD and 29,682 million USD in the final year.
- Solvency Implications
- The divergence between the growth rate of total debt and the growth rate of total assets has led to a deterioration in the solvency ratio. The increase from a ratio of 0.40 to 0.73 suggests a higher financial risk profile and an increased obligation to creditors and lessors relative to the company's total resources.
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Financial Leverage
Booking Holdings Inc., financial leverage calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | 28,264) | 29,682) | 27,720) | 29,264) | 28,752) | 30,684) | 27,191) | 27,708) | 27,978) | 28,541) | 27,728) | 24,342) | 25,635) | 26,558) | 25,206) | 25,361) | 22,063) | 24,493) | 22,384) | ||||||
| Stockholders’ equity (deficit) | (10,407) | (10,783) | (8,724) | (5,578) | (4,736) | (6,657) | (6,112) | (4,020) | (3,653) | (4,276) | (4,052) | (2,744) | (625) | (665) | 1,074) | 2,782) | 3,670) | 4,002) | 4,373) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 23.47 | 9.12 | 6.01 | 6.12 | 5.12 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| Airbnb Inc. | 2.62 | 3.69 | 3.51 | 2.71 | 2.68 | 3.47 | 3.16 | 2.49 | 2.61 | 3.29 | 3.11 | 2.53 | 2.35 | 4.19 | 3.78 | 2.88 | 2.90 | 3.63 | 3.60 | ||||||
| Chipotle Mexican Grill Inc. | 3.84 | 4.03 | 3.66 | 3.18 | 2.88 | 2.63 | 2.59 | 2.52 | 2.49 | 2.40 | 2.50 | 2.63 | 2.74 | 2.73 | 2.84 | 2.93 | 2.93 | 3.04 | 3.03 | ||||||
| DoorDash, Inc. | 1.92 | 1.97 | 1.93 | 1.96 | 1.89 | 1.90 | 1.62 | 1.65 | 1.62 | 1.65 | 1.64 | 1.59 | 1.53 | 1.50 | 1.48 | 1.45 | 1.40 | 1.34 | 1.47 | ||||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 28,264 ÷ -10,407 = —
2 Click competitor name to see calculations.
The solvency profile exhibits a significant deterioration in equity stability, transitioning from a positive stockholders' equity position to a substantial deficit. While total assets remained relatively stable with a slight upward trajectory, the equity base underwent a continuous decline, leading to a state of negative net worth starting in the second quarter of 2023.
- Stockholders' Equity Trend
- A consistent downward trend is observed in stockholders' equity, which fell from 4,373 million USD in March 2022 to a deficit of 10,407 million USD by September 2026. The transition into a negative equity position occurred between March 2023 and June 2023. This deficit expanded rapidly throughout 2024 and 2025, indicating that total liabilities have significantly exceeded total assets.
- Total Asset Movement
- Total assets demonstrated moderate growth and fluctuations, rising from 22,384 million USD in March 2022 to a peak of 30,684 million USD in June 2025, before settling at 28,264 million USD by September 2026. The growth in assets was insufficient to offset the precipitous decline in equity.
- Financial Leverage Dynamics
- The financial leverage ratio showed a sharp upward trajectory during the initial period of analysis. The ratio increased from 5.12 in March 2022 to 23.47 by March 2023. This rapid escalation reflects the diminishing equity base relative to the asset base. Following the shift to negative stockholders' equity in June 2023, the standard leverage ratio becomes mathematically atypical, signaling a structural shift in the balance sheet where the company is operating with a deficit.
The overall financial trajectory indicates an increasing reliance on liabilities to fund assets. The widening equity deficit suggests a high level of financial risk or a strategic decision to return capital to shareholders in excess of retained earnings, resulting in a highly leveraged capital structure.
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Interest Coverage
Booking Holdings Inc., interest coverage calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income (loss) | 2,717) | 1,950) | 1,083) | 1,428) | 2,748) | 895) | 333) | 1,068) | 2,517) | 1,521) | 776) | 222) | 2,511) | 1,290) | 266) | 1,235) | 1,666) | 857) | (700) | ||||||
| Add: Income tax expense | 706) | 610) | 316) | 435) | 721) | 209) | 63) | 496) | 352) | 401) | 161) | 189) | 638) | 328) | 37) | 217) | 510) | 287) | (149) | ||||||
| Add: Interest expense | 311) | 300) | 253) | 249) | 301) | 418) | 649) | 507) | 305) | 264) | 219) | 208) | 254) | 241) | 194) | 145) | 102) | 76) | 68) | ||||||
| Earnings before interest and tax (EBIT) | 3,734) | 2,860) | 1,652) | 2,112) | 3,770) | 1,522) | 1,045) | 2,071) | 3,174) | 2,186) | 1,156) | 619) | 3,403) | 1,859) | 497) | 1,597) | 2,278) | 1,220) | (781) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Interest coverage1 | 9.31 | 9.42 | 7.42 | 5.23 | 4.48 | 4.16 | 4.91 | 6.63 | 7.16 | 7.79 | 7.63 | 7.11 | 8.82 | 9.14 | 10.82 | 11.03 | 11.24 | 7.95 | 3.94 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
| Airbnb Inc. | 43.07 | 68.26 | 171.79 | 1,046.67 | 199.00 | 301.82 | 643.20 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, Inc. | — | — | — | — | — | — | — | — | — | — | — | — | -1,053.00 | -1,285.00 | -687.50 | -698.50 | -445.50 | -345.50 | -259.50 | ||||||
| McDonald’s Corp. | 8.02 | 7.88 | 7.92 | 7.89 | 7.88 | 7.92 | 7.80 | 7.87 | 7.95 | 8.19 | 8.60 | 8.73 | 8.82 | 8.73 | 7.84 | 7.48 | 7.44 | 7.64 | 8.43 | ||||||
| Starbucks Corp. | 6.53 | 5.39 | 5.06 | 5.62 | 7.59 | 8.69 | 9.40 | 9.84 | 10.50 | 10.61 | 11.07 | 10.82 | 10.22 | 10.01 | 9.66 | 9.76 | 12.25 | 12.95 | 13.08 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Interest coverage
= (EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025)
÷ (Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025)
= (3,734 + 2,860 + 1,652 + 2,112)
÷ (311 + 300 + 253 + 249)
= 9.31
2 Click competitor name to see calculations.
The solvency profile of the organization, specifically regarding its ability to service debt through operating profits, exhibits a cyclical pattern characterized by initial rapid growth, a period of moderate decline, and a subsequent recovery phase. The interest coverage ratio demonstrates significant volatility, closely mirroring the seasonal fluctuations of earnings before interest and tax (EBIT).
- EBIT Performance and Seasonality
- Earnings before interest and tax exhibit a strong seasonal trend, with consistent peaks occurring in the third quarter of each year. Following a deficit of US$781 million in March 2022, EBIT grew substantially, reaching a high of US$3,770 million by September 2025. This recurring quarterly surge provides the primary support for the company's capacity to meet interest obligations.
- Interest Expense Trends
- Interest expenses showed a steady upward trajectory from March 2022, increasing from US$68 million to a peak of US$649 million in March 2025. After this peak, a downward trend is observed, with expenses stabilizing between US$249 million and US$311 million throughout 2026, suggesting a potential restructuring of debt or a decrease in borrowing costs.
- Interest Coverage Ratio Dynamics
- The interest coverage ratio experienced a sharp increase in 2022, peaking at 11.24 in September. A gradual contraction followed, with the ratio descending to a low of 4.16 by June 2025, coinciding with the peak in interest expenses and a relative dip in EBIT. However, a recovery is evident from the second half of 2025 through September 2026, where the ratio climbed back to 9.31, indicating a strengthened solvency position and an improved margin of safety for debt servicing.
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