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)
Booking Holdings Inc., solvency ratios (quarterly data)
Based on: 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).
Solvency ratios demonstrate a notable shift in the company’s financial leverage over the observed period. Initially, from March 31, 2022, through December 31, 2022, the ratios exhibited relative stability, followed by a significant increase in leverage beginning in March 2023. This trend continues through December 2023, with a slight moderation in the most recent quarters, March 31, 2024, through December 31, 2025.
- Debt to Equity
- The debt to equity ratio increased substantially from 2.23 in March 2022 to 11.29 in March 2023. While it did not continue to climb at the same rate, it remained elevated, fluctuating between approximately 11.79 and 1.62 over the subsequent quarters. The most recent value, as of December 31, 2025, is 1.42.
- Debt to Capital
- The debt to capital ratio followed a similar pattern to debt to equity, rising from 0.69 in March 2022 to 0.92 in March 2023. It continued to increase, peaking at 1.34 in June 2024, before decreasing to 1.41 by December 2025. This indicates a growing reliance on debt financing relative to total capital.
- Debt to Assets
- The debt to assets ratio showed a more moderate increase, moving from 0.44 in March 2022 to 0.50 in March 2023. It continued to rise, reaching 0.66 in December 2025, suggesting an increasing proportion of assets financed by debt. The increase, while present, is less dramatic than that observed in the debt to equity ratio.
- Financial Leverage
- Financial leverage experienced the most dramatic change, increasing from 5.12 in March 2022 to 23.47 in March 2023. Subsequent quarterly values are unavailable, making it difficult to assess the trend beyond this point. The substantial increase suggests a significant amplification of returns to shareholders, but also a corresponding increase in financial risk.
- Interest Coverage
- The interest coverage ratio, while initially strong at 3.94 in March 2022, generally declined over the period. It peaked at 11.24 in September 2022, but decreased to 5.23 by December 2025. This indicates a diminishing ability to cover interest expenses with earnings, potentially due to increased debt levels or lower profitability. The decline, while not precipitous, warrants monitoring.
The inclusion of operating lease liabilities in the calculations consistently results in higher ratio values compared to those excluding them, indicating that operating leases contribute significantly to the company’s overall debt profile. The substantial increase in debt ratios beginning in March 2023 represents a significant shift in the company’s capital structure and should be investigated further to understand the underlying drivers and potential implications.
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Debt Ratios
Coverage Ratios
Debt to Equity
Booking Holdings Inc., debt to equity calculation (quarterly data)
| 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 | 1,880) | 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 | 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 | 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) | (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. | 0.24 | 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 | |||||
| DoorDash, Inc. | 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-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 Q4 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 18,736 ÷ -5,578 = —
2 Click competitor name to see calculations.
The debt to equity ratio exhibits a significant and concerning trend over the observed period. Initially, the ratio demonstrates an increasing trend from March 31, 2022, to December 31, 2022, culminating in a substantial increase in the ratio. Subsequently, the ratio experiences a dramatic surge in the first quarter of 2023, followed by missing values for the subsequent quarters. The ratio reappears in March 31, 2024, and continues to fluctuate, remaining elevated throughout the remainder of the analyzed period.
- Initial Trend (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, to December 31, 2022, the debt to equity ratio increased from 2.23 to 4.49. This indicates a growing reliance on debt financing relative to equity, suggesting increased financial leverage. The increase is particularly pronounced in the final quarter of 2022.
- Dramatic Increase and Subsequent Gap (Mar 31, 2023 – Jun 30, 2023)
- The ratio experienced a substantial jump to 11.29 by March 31, 2023. Following this, values are unavailable for the subsequent two quarters. This lack of information prevents a clear understanding of the ratio’s behavior during this period, but the initial increase suggests a significant shift in the company’s capital structure.
- Fluctuations and Continued High Leverage (Mar 31, 2024 – Dec 31, 2025)
- From March 31, 2024, through December 31, 2025, the debt to equity ratio remains elevated, fluctuating between approximately 16.02 and 18.74. This sustained high level indicates a continued reliance on debt financing and a potentially precarious capital structure. The ratio does not demonstrate a clear trend of improvement during this period.
The observed pattern suggests a considerable increase in financial risk. The significant rise in the debt to equity ratio, coupled with the period of unavailable values, warrants further investigation into the underlying factors driving these changes. The consistently high ratio in the later periods indicates a sustained level of financial leverage that could pose challenges to the company’s long-term financial health.
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Debt to Equity (including Operating Lease Liability)
Booking Holdings Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| 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 | 1,880) | 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 | 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 | 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 | 557) | 533) | 517) | 476) | 483) | 508) | 529) | 556) | 599) | 547) | 533) | 539) | 552) | 286) | 323) | 349) | |||||
| Total debt (including operating lease liability) | 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) | (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. | 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. | 0.33 | 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-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 Q4 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit)
= 19,293 ÷ -5,578 = —
2 Click competitor name to see calculations.
The Debt-to-Equity ratio, including operating lease liabilities, exhibits a significant and concerning trend over the analyzed period. Initially, the ratio demonstrates a gradual increase from 2.31 in March 2022 to 2.58 in September 2022. A substantial jump is then observed in December 2022, reaching 4.69, indicating a considerable increase in leverage relative to equity.
- Initial Increase (Mar 2022 - Sep 2022)
- During the first three quarters of 2022, the ratio increased modestly. This suggests a consistent, though not alarming, reliance on debt financing compared to equity. The increase could be attributed to strategic borrowing for expansion or operational needs.
The most dramatic shift occurs in the subsequent periods. The ratio escalates sharply to 11.79 by March 2023. Following this, values are unavailable for June and September 2023. The ratio remains exceptionally high through December 2023, and continues to fluctuate between approximately -4.276 and -3.653 for the first three quarters of 2024. The ratio then increases again to -5.578 by December 2025.
- Significant Leverage Increase (Dec 2022 - Mar 2023)
- The substantial increase in the ratio from December 2022 to March 2023 signifies a marked shift in the company’s capital structure. This suggests a significant increase in debt, potentially due to large acquisitions, substantial investments, or a decline in equity. The subsequent negative equity values further exacerbate the ratio’s interpretation.
The negative values for Stockholders’ Equity beginning in June 2023 introduce a critical element to the interpretation. With negative equity, the Debt-to-Equity ratio becomes less meaningful in its traditional sense, as it represents debt relative to a negative net worth. The consistently negative equity position throughout the remainder of the analyzed period indicates a substantial erosion of the company’s ownership stake and a heightened level of financial risk.
- Negative Equity Impact (Jun 2023 - Dec 2025)
- The presence of negative equity fundamentally alters the risk profile. While the ratio continues to be calculated, its interpretation shifts from a measure of leverage to a reflection of the extent to which debt exceeds assets. The increasing debt levels alongside negative equity suggest a precarious financial situation and potential solvency concerns.
Total debt, including operating lease liability, generally increased over the period, contributing to the escalating ratio. The combination of rising debt and declining, then negative, equity creates a highly leveraged financial position.
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Debt to Capital
Booking Holdings Inc., debt to capital calculation (quarterly data)
| 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 | 1,880) | 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 | 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 | 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) | (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 | 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 | 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 | 0.19 | 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 | |||||
| DoorDash, Inc. | 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. | 1.05 | 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. | 2.01 | 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-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 Q4 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 18,736 ÷ 13,158 = 1.42
2 Click competitor name to see calculations.
The debt to capital ratio exhibits a clear upward trend over the observed period, indicating increasing financial leverage. Initially, the ratio remained relatively stable, fluctuating between 0.69 and 0.71 from March 31, 2022, to September 30, 2022. A noticeable increase began in December 31, 2022, accelerating through the subsequent quarters.
- Overall Trend
- From March 31, 2022, to December 31, 2025, the debt to capital ratio increased from 0.69 to 1.42. This represents a more than doubling of the ratio over the period, suggesting a significant shift in the company’s capital structure towards greater reliance on debt financing.
- Initial Stability (March 31, 2022 – September 30, 2022)
- During this period, the ratio remained within a narrow range, indicating a consistent balance between debt and capital. Total debt decreased slightly from US$9,768 million to US$9,184 million, while total capital also decreased, resulting in a relatively stable ratio.
- Accelerated Increase (December 31, 2022 – March 31, 2024)
- The ratio began to climb more rapidly starting in December 2022, reaching 0.82, and continued its ascent to 1.32 by March 31, 2024. This coincided with a substantial increase in total debt, from US$12,485 million to US$16,900 million, while total capital experienced more moderate growth. This suggests the company actively increased its debt levels.
- Recent Fluctuations (March 31, 2024 – December 31, 2025)
- While the overall trend remained upward, the ratio exhibited some fluctuation in the later periods. It peaked at 1.34 in June 30, 2024, then decreased slightly to 1.29 in September 30, 2024, before rising again to 1.42 by December 31, 2025. Total debt continued to increase, reaching US$18,736 million, while total capital showed less consistent growth.
The increasing debt to capital ratio warrants further investigation into the company’s debt management strategies and its ability to service its debt obligations. The trend suggests a growing reliance on debt financing, which could potentially increase financial risk.
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Debt to Capital (including Operating Lease Liability)
Booking Holdings Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Short-term debt | 1,880) | 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 | 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 | 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 | 557) | 533) | 517) | 476) | 483) | 508) | 529) | 556) | 599) | 547) | 533) | 539) | 552) | 286) | 323) | 349) | |||||
| Total debt (including operating lease liability) | 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) | (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) | 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 | 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. | 0.64 | 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. | 0.25 | 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. | 1.44 | 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-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 Q4 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 19,293 ÷ 13,715 = 1.41
2 Click competitor name to see calculations.
The Debt to Capital ratio, inclusive of operating lease liabilities, demonstrates a clear increasing trend over the observed period. Initially, the ratio fluctuated around 0.70 to 0.72 in the first three quarters of 2022, before rising significantly to 0.82 by the end of that year. This upward trajectory continued into 2023 and 2024, reaching a peak of 1.33 in June 2024. While a slight decrease was noted in September 2024, the ratio remained elevated, concluding the period at 1.41 in December 2025.
- Overall Trend
- The ratio exhibits a substantial increase from 0.70 in March 2022 to 1.41 in December 2025. This indicates a growing reliance on debt financing relative to capital. The most pronounced increases occurred between December 2022 and June 2024.
- 2022-2023 Performance
- From March 2022 to December 2023, the ratio increased from 0.70 to 1.23. The increase from 0.82 in December 2022 to 0.92 in March 2023 was relatively modest, but the subsequent rise to 1.05 in June 2023 and 1.23 in December 2023 suggests a more aggressive adoption of debt.
- 2024-2025 Performance
- The period between March 2024 and December 2025 shows continued high levels of the ratio, fluctuating between 1.30 and 1.41. The ratio peaked at 1.33 in June 2024, decreased slightly to 1.28 in September 2024, and then increased again to 1.41 by December 2025. This suggests a sustained, elevated level of debt relative to capital, with minor fluctuations.
- Capital Base
- The Total Capital figure decreased from 14,490 in March 2022 to 13,715 in December 2025. This decrease in the capital base, coupled with the increase in total debt, contributes to the observed rise in the Debt to Capital ratio.
- Debt Levels
- Total debt, including operating lease liability, increased from 10,117 in March 2022 to 19,293 in December 2025. This substantial increase in debt is the primary driver of the increasing Debt to Capital ratio.
The consistent increase in the Debt to Capital ratio warrants further investigation into the reasons behind the increased debt financing and the potential implications for the company’s financial flexibility and risk profile. The decreasing capital base also requires attention.
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Debt to Assets
Booking Holdings Inc., debt to assets calculation (quarterly data)
| 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 | 1,880) | 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 | 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 | 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 | 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 | 0.64 | 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. | 0.09 | 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 | |||||
| DoorDash, Inc. | 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. | 0.67 | 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. | 0.50 | 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-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 Q4 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 18,736 ÷ 29,264 = 0.64
2 Click competitor name to see calculations.
The debt-to-assets ratio for the analyzed period demonstrates a generally increasing trend, indicating a growing reliance on debt financing relative to the company’s asset base. Initial values show a decrease from 0.44 in March 2022 to 0.39 in June 2022, followed by a period of fluctuation before a sustained upward trajectory.
- Overall Trend
- The ratio generally increased from 0.44 in March 2022 to 0.64 in December 2025. This suggests a shift in the company’s capital structure towards greater leverage over the observed timeframe. The most significant increases occurred between September 2022 and December 2022, and again between March 2024 and December 2025.
- Short-Term Fluctuations (2022-2023)
- From March 2022 through June 2023, the ratio experienced volatility. It initially decreased, then increased to 0.53 in June 2023. This period may reflect strategic debt management activities or responses to changing market conditions. The ratio remained relatively stable between 0.53 and 0.59 for the subsequent four quarters.
- Recent Increases (2024-2025)
- A more pronounced increase is observed from March 2024 onwards. The ratio climbed from 0.61 to 0.64 by December 2025. This suggests a more recent and deliberate increase in debt levels, potentially to fund expansion, acquisitions, or share repurchases. The ratio reached its highest point at 0.64 in December 2025.
The consistent upward trend in the debt-to-assets ratio warrants further investigation into the company’s debt obligations, interest coverage, and overall financial health. While increased leverage can amplify returns, it also elevates financial risk.
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Debt to Assets (including Operating Lease Liability)
Booking Holdings Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| 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 | 1,880) | 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 | 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 | 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 | 557) | 533) | 517) | 476) | 483) | 508) | 529) | 556) | 599) | 547) | 533) | 539) | 552) | 286) | 323) | 349) | |||||
| Total debt (including operating lease liability) | 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 | 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 | 0.66 | 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. | 0.56 | 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. | 0.17 | 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. | 0.83 | 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-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 Q4 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 19,293 ÷ 29,264 = 0.66
2 Click competitor name to see calculations.
The debt to assets ratio, including operating lease liabilities, exhibits a generally increasing trend over the observed period, spanning from March 31, 2022, to December 31, 2025. While fluctuations occur, the ratio demonstrates a notable rise from an initial value of 0.45 to 0.66.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ratio begins at 0.45 and experiences a decrease to 0.40 by June 30, 2022, before increasing to 0.43 by September 30, 2022. A more substantial increase is then observed, reaching 0.51 by December 31, 2022. This suggests a growing reliance on debt financing or a decrease in the asset base relative to debt during this timeframe.
- 2023 Performance
- The ratio continues to climb throughout 2023, starting at 0.50 on March 31, 2023, and reaching 0.61 by December 31, 2023. The highest value within the year is 0.56, recorded on September 30, 2023. This consistent increase indicates a continued trend of increasing financial leverage.
- 2024 and 2025 Trends
- The ratio fluctuates between 0.60 and 0.63 during 2024, demonstrating a period of relative stabilization, albeit at a higher level than in previous periods. The ratio then increases again in 2025, reaching 0.66 by December 31, 2025, representing the highest value in the observed period. The increase in the latter part of the period suggests a renewed increase in leverage.
- Overall Observation
- The consistent upward trajectory of the debt to assets ratio suggests a potential increase in financial risk. While a moderate level of debt can be beneficial, a consistently rising ratio warrants further investigation into the company’s debt structure, its ability to service its debt obligations, and the underlying reasons for the increasing leverage. The ratio’s movement indicates a shift in the company’s capital structure towards greater debt financing.
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Financial Leverage
Booking Holdings Inc., financial leverage calculation (quarterly data)
| 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 | 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) | (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. | 2.71 | 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. | 3.18 | 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. | 1.96 | 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-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 Q4 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 29,264 ÷ -5,578 = —
2 Click competitor name to see calculations.
The financial leverage of the company, as indicated by the ratio of total assets to stockholders’ equity, demonstrates a significant and concerning trend over the observed period. Initially, the ratio exhibited an increasing trend, culminating in a substantial spike and subsequent volatility.
- Initial Leverage (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, to December 31, 2022, financial leverage increased from 5.12 to 9.12. This indicates a growing reliance on assets financed by debt or other liabilities relative to equity. The increase suggests a potential shift in capital structure towards greater financial risk.
- Dramatic Increase and Negative Equity (Mar 31, 2023 – Dec 31, 2023)
- A dramatic increase in financial leverage is observed from March 31, 2023, reaching 23.47. This coincides with a significant decline in stockholders’ equity, which transitioned from a positive value to a negative value (-665) and continued to decrease, reaching -2,744 by December 31, 2023. Negative equity signifies that the company’s liabilities exceed its assets, representing a precarious financial position.
- Continued Negative Equity and Fluctuating Leverage (Mar 31, 2024 – Dec 31, 2025)
- Stockholders’ equity remained negative throughout the remainder of the period, reaching its lowest point of -6,657 in June 2025. Financial leverage fluctuated, but remained elevated, ranging from -4,052 to -5,578. The continued negative equity suggests ongoing financial distress and a high degree of financial risk. The fluctuations in leverage, despite consistently negative equity, may be attributable to changes in total asset value.
- Overall Trend
- The overall trend reveals a substantial increase in financial leverage coupled with a deterioration of stockholders’ equity. The transition to negative equity is particularly noteworthy, indicating a substantial weakening of the company’s financial foundation. The persistence of negative equity and high leverage levels throughout the observed period suggests a sustained period of financial vulnerability.
The observed patterns suggest a need for careful monitoring of the company’s financial health and potential restructuring efforts to address the negative equity and high leverage.
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Interest Coverage
Booking Holdings Inc., interest coverage calculation (quarterly data)
| 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) | 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 | 435) | 721) | 209) | 63) | 496) | 352) | 401) | 161) | 189) | 638) | 328) | 37) | 217) | 510) | 287) | (149) | |||||
| Add: Interest expense | 249) | 301) | 418) | 649) | 507) | 305) | 264) | 219) | 208) | 254) | 241) | 194) | 145) | 102) | 76) | 68) | |||||
| Earnings before interest and tax (EBIT) | 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 | 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 | |||||||||||||||||||||
| DoorDash, Inc. | — | — | — | — | — | — | — | — | — | -1,053.00 | -1,285.00 | -687.50 | -698.50 | -445.50 | -345.50 | -259.50 | |||||
| McDonald’s Corp. | 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. | 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-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 Q4 2025 Calculation
Interest coverage
= (EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025)
÷ (Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025)
= (2,112 + 3,770 + 1,522 + 1,045)
÷ (249 + 301 + 418 + 649)
= 5.23
2 Click competitor name to see calculations.
The interest coverage ratio exhibits considerable fluctuation over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio demonstrates a strong upward trajectory, followed by a period of stabilization and subsequent decline, with a recent indication of recovery.
- Initial Improvement (Mar 31, 2022 – Sep 30, 2022)
- The interest coverage ratio increased significantly from 3.94 in March 2022 to 11.24 by September 2022. This improvement coincided with a substantial increase in earnings before interest and tax (EBIT), indicating a strengthening ability to meet interest obligations. The initial low value in March 2022 was likely due to the negative EBIT reported for that quarter.
- Stabilization and Decline (Dec 31, 2022 – Mar 31, 2024)
- Following the peak in September 2022, the ratio experienced a decline, albeit remaining above 7.0 for most of this period. The ratio decreased to 6.63 by March 2024. This decline appears to be driven by a combination of fluctuating EBIT and increasing interest expense. While EBIT remained positive, its growth was not consistently sufficient to offset the rising cost of borrowing.
- Recent Trends (Jun 30, 2024 – Dec 31, 2025)
- From June 2024 onwards, the interest coverage ratio shows signs of stabilization and a slight recovery. The ratio increased from 7.16 to 5.23 by December 2025. This is attributable to a relative stabilization of interest expense and a moderate increase in EBIT during the latter part of the period. The ratio reached a low of 4.16 in June 2025 before recovering in the final quarter.
- Overall Volatility
- The ratio demonstrates a high degree of sensitivity to changes in both EBIT and interest expense. The fluctuations suggest potential vulnerability to economic conditions or company-specific factors impacting profitability and borrowing costs. The range of the ratio, from a low of 3.94 to a high of 11.24, highlights the dynamic nature of the company’s ability to cover its interest obligations.
In conclusion, while the interest coverage ratio generally indicates a satisfactory ability to meet interest payments, the observed volatility warrants continued monitoring. The recent recovery is a positive sign, but sustained improvement in EBIT relative to interest expense will be crucial for maintaining a healthy solvency position.
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