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-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).
The solvency profile of the company exhibits a consistent trend toward increased financial leverage over the analyzed period. There is a clear escalation in the proportion of debt relative to equity, total capital, and total assets, indicating a strategic shift toward a more debt-heavy capital structure.
- Leverage and Equity Ratios
- A sharp increase in the debt-to-equity ratio is observed, rising from 2.23 in March 2022 to 11.29 by March 2023. This trend is mirrored in the financial leverage ratio, which surged from 5.12 to 23.47 during the same timeframe. These metrics suggest a substantial reduction in shareholder equity relative to total debt, significantly elevating the company's financial risk profile in the early stages of the period.
- Capital and Asset Composition
- The debt-to-capital ratio shows a steady upward trajectory, beginning at 0.69 in March 2022 and reaching 2.15 by June 2026. Similarly, the debt-to-assets ratio climbed from 0.44 to 0.68 over the same duration. The inclusion of operating lease liabilities consistently reflects slightly higher ratios, though the underlying trend of increasing debt dependence remains the same. By mid-2026, a majority of the company's assets are financed through debt.
- Debt Servicing Capacity
- The interest coverage ratio exhibits significant volatility. After peaking at 11.24 in September 2022, the ratio experienced a decline, reaching a low of 4.16 in June 2023. However, a recovery trend is evident in the subsequent years, with the ratio improving to 9.42 by June 2026. This indicates that while the absolute level of debt has increased, the company has managed to maintain and eventually improve its ability to service interest payments relative to its earnings.
In summary, the company has aggressively expanded its leverage, as evidenced by the rising debt-to-capital and debt-to-asset ratios. While the surge in financial leverage and debt-to-equity ratios indicates a more precarious equity position, the rebounding interest coverage ratio suggests that operational earnings remain sufficient to handle the increased debt burden.
AI Ask an analyst for more
Debt Ratios
Coverage Ratios
Debt to Equity
Booking Holdings Inc., debt to equity calculation (quarterly data)
| 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 | 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 | 18,180) | 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 | 20,180) | 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) | (10,783) | (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. | 0.32 | 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 | ||||||
| DoorDash, Inc. | 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: 2026-06-30), 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 Q2 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 20,180 ÷ -10,783 = —
2 Click competitor name to see calculations.
The financial trajectory indicates a substantial deterioration in solvency and a fundamental shift in the capital structure. The organization has moved from a position of positive equity to a significant equity deficit, coinciding with a steady increase in total debt obligations.
- Total Debt Trends
- Total debt demonstrated a consistent upward trend throughout the analyzed period. Starting at 9,768 million USD in March 2022, the debt load increased to 20,180 million USD by June 2026. This represents a cumulative increase of approximately 106%, signaling a heightened reliance on borrowed capital to fund operations or corporate actions.
- Stockholders' Equity Analysis
- A severe erosion of stockholders' equity is observed. The equity position declined from 4,373 million USD in March 2022 to a negative value of 665 million USD by June 2023. This deficit continued to expand aggressively, reaching 10,783 million USD by June 2026. The transition to a negative equity position suggests that liabilities have surpassed total assets, a condition often associated with aggressive share buyback programs or sustained losses.
- Debt-to-Equity Ratio Interpretation
- The debt-to-equity ratio experienced a rapid escalation during the initial phase of the period, rising from 2.23 in March 2022 to 11.29 by March 2023. Once the stockholders' equity entered deficit territory in June 2023, the ratio ceased to be a meaningful metric for traditional solvency measurement, as the negative denominator indicates a capital structure that is entirely leveraged beyond its equity base.
AI Ask an analyst for more
Debt to Equity (including Operating Lease Liability)
Booking Holdings Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| 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 | 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 | 18,180) | 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 | 20,180) | 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 | 514) | 530) | 557) | 533) | 517) | 476) | 483) | 508) | 529) | 556) | 599) | 547) | 533) | 539) | 552) | 286) | 323) | 349) | ||||||
| Total debt (including operating lease liability) | 20,694) | 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) | (10,783) | (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. | 2.46 | 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. | 0.33 | 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: 2026-06-30), 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 Q2 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit)
= 20,694 ÷ -10,783 = —
2 Click competitor name to see calculations.
The solvency profile exhibits a significant deterioration over the analyzed period, characterized by a simultaneous increase in total liabilities and a substantial erosion of stockholders' equity, leading to a negative equity position.
- Total Debt Trajectory
- Total debt, including operating lease liabilities, demonstrates a consistent long-term upward trend. Starting at 10,117 million US dollars in March 2022, the total debt increased to 20,694 million US dollars by June 2026. A period of accelerated borrowing is evident between September 2022 and December 2022, during which debt rose from 9,470 million to 13,037 million US dollars.
- Stockholders' Equity Erosion
- A severe decline in equity is observed, transitioning from a positive balance of 4,373 million US dollars in March 2022 to a deficit of 10,783 million US dollars by June 2026. The equity position officially shifted into a deficit in June 2023 (-665 million US dollars) and continued to expand throughout the remainder of the period, indicating a systemic depletion of the capital base.
- Debt-to-Equity Ratio Interpretation
- The debt-to-equity ratio experienced a rapid escalation during the initial phase of the analysis, rising from 2.31 in March 2022 to 11.79 by March 2023. Following the transition to negative stockholders' equity in mid-2023, the ratio ceased to be a conventional measure of solvency, as the negative equity denominator reflects a state where total liabilities exceed total assets.
AI Ask an analyst for more
Debt to Capital
Booking Holdings Inc., debt to capital calculation (quarterly data)
| 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 | 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 | 18,180) | 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 | 20,180) | 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) | (10,783) | (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 | 9,397) | 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 | 2.15 | 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. | 0.24 | 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 | ||||||
| DoorDash, Inc. | 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. | 1.03 | 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. | 2.28 | 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: 2026-06-30), 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 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 20,180 ÷ 9,397 = 2.15
2 Click competitor name to see calculations.
A comprehensive analysis of the solvency metrics reveals a significant and consistent increase in leverage over the period from March 31, 2022, to June 30, 2026. The overall trend is characterized by a simultaneous increase in total debt and a general decline in total capital, leading to a substantial rise in the debt-to-capital ratio.
- Total Debt Trajectory
- Total debt experienced a strong upward trend, increasing from 9,768 million US$ in March 2022 to 20,180 million US$ by June 2026. A notable escalation occurred between September 30, 2022, and December 31, 2022, where debt rose from 9,184 million US$ to 12,485 million US$. The growth continued progressively, with a significant surge observed in the first half of 2026, peaking at the end of the period.
- Total Capital Trends
- Total capital demonstrated a downward trajectory over the analyzed timeframe. Starting at 14,141 million US$ in March 2022, the figure declined to 9,397 million US$ by June 2026. This reduction in the capital base, occurring alongside rising debt levels, has accelerated the deterioration of the solvency ratio.
- Debt to Capital Ratio Interpretation
- The debt-to-capital ratio rose from 0.69 in March 2022 to 2.15 in June 2026. The ratio crossed the critical 1.0 threshold in June 2023, indicating a shift where total debt began to exceed total capital. Between March 2024 and December 2024, the ratio remained relatively stable between 1.29 and 1.34, before accelerating sharply in 2025 and 2026. The final value of 2.15 signifies a highly leveraged capital structure, with debt representing more than double the total capital.
The combined effect of doubling the total debt while reducing the total capital base has resulted in a solvency profile with significantly increased financial risk. The acceleration of the ratio in the final quarters suggests a rapid shift in the company's financing strategy or a substantial reduction in equity components.
AI Ask an analyst for more
Debt to Capital (including Operating Lease Liability)
Booking Holdings Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| 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 | 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 | 18,180) | 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 | 20,180) | 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 | 514) | 530) | 557) | 533) | 517) | 476) | 483) | 508) | 529) | 556) | 599) | 547) | 533) | 539) | 552) | 286) | 323) | 349) | ||||||
| Total debt (including operating lease liability) | 20,694) | 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) | (10,783) | (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) | 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 | 2.09 | 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. | 0.71 | 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. | 0.25 | 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. | 1.53 | 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: 2026-06-30), 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 Q2 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 20,694 ÷ 9,911 = 2.09
2 Click competitor name to see calculations.
The solvency profile exhibits a significant upward trend in leverage and a contraction of the total capital base between March 31, 2022, and June 30, 2026.
- Debt Accumulation Trends
- Total debt, including operating lease liabilities, increased from 10,117 million USD in the first quarter of 2022 to 20,694 million USD by the second quarter of 2026. This represents a consistent expansion of total obligations, with total debt more than doubling over the analyzed period.
- Total Capital Dynamics
- Total capital experienced notable volatility, peaking at 15,819 million USD in December 2022 before entering a general downward trajectory. By June 30, 2026, total capital fell to 9,911 million USD, indicating a reduction in the overall capital base.
- Debt to Capital Ratio Analysis
- The debt to capital ratio climbed steadily from 0.70 in March 2022 to 2.09 by June 2026. A critical inflection point occurred in the second quarter of 2023, when the ratio surpassed 1.00, signaling that total debt exceeded total capital. The growth of this ratio accelerated significantly in 2025 and 2026, moving from 1.54 in June 2025 to 2.09 by June 2026.
The divergence between rising total debt and a declining capital base has resulted in a compounding effect on the solvency ratio, leading to a capital structure that is substantially more leveraged at the end of the period than at the beginning.
AI Ask an analyst for more
Debt to Assets
Booking Holdings Inc., debt to assets calculation (quarterly data)
| 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 | 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 | 18,180) | 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 | 20,180) | 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 | 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 | 0.68 | 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. | 0.09 | 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 | ||||||
| DoorDash, Inc. | 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. | 0.67 | 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. | 0.49 | 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: 2026-06-30), 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 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 20,180 ÷ 29,682 = 0.68
2 Click competitor name to see calculations.
The solvency profile exhibits a consistent increase in financial leverage over the period from March 2022 to June 2026. There is a clear trajectory showing that debt accumulation has outpaced asset growth, resulting in a higher proportion of the asset base being financed through liabilities.
- Total Debt Trends
- A substantial upward trend is observed in total debt, which rose from 9,768 million USD in March 2022 to 20,180 million USD by June 2026. Significant increases occurred in December 2022 and March 2024, indicating periods of intensified borrowing activity.
- Total Asset Evolution
- Total assets grew from 22,384 million USD to 29,682 million USD. While the general trend is positive, asset growth was more volatile than debt growth, experiencing contractions in September 2022, September 2023, and March 2026.
- Debt to Assets Ratio Analysis
- The debt to assets ratio demonstrates a steady long-term increase, moving from 0.44 in March 2022 to 0.68 by June 2026. The ratio transitioned through three distinct phases: a baseline period between 0.39 and 0.49 in 2022, a mid-range escalation to the 0.50s during 2023, and a sustained high-leverage phase exceeding 0.60 from March 2024 onward. This progression indicates a systematic increase in the company's solvency risk profile over the analyzed timeframe.
AI Ask an analyst for more
Debt to Assets (including Operating Lease Liability)
Booking Holdings Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| 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 | 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 | 18,180) | 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 | 20,180) | 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 | 514) | 530) | 557) | 533) | 517) | 476) | 483) | 508) | 529) | 556) | 599) | 547) | 533) | 539) | 552) | 286) | 323) | 349) | ||||||
| Total debt (including operating lease liability) | 20,694) | 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 | 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 | 0.70 | 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. | 0.61 | 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. | 0.17 | 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. | 0.80 | 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: 2026-06-30), 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 Q2 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 20,694 ÷ 29,682 = 0.70
2 Click competitor name to see calculations.
The solvency profile of the organization indicates a consistent increase in financial leverage from March 31, 2022, through June 30, 2026. The overall trend is characterized by a steady rise in total debt that has outpaced the growth of total assets, leading to a significant expansion of the debt-to-assets ratio.
- Total Debt Trajectory
- Total debt, including operating lease liabilities, more than doubled over the analyzed period, rising from 10,117 million US$ in March 2022 to 20,694 million US$ by June 2026. A notable surge occurred between September 30, 2022, and December 31, 2022, where debt increased from 9,470 million US$ to 13,037 million US$. Subsequent growth remained aggressive, with the debt level consistently climbing above 17,000 million US$ starting in March 2024.
- Asset Base Evolution
- Total assets demonstrated a general upward trend, growing from 22,384 million US$ in March 2022 to 29,682 million US$ in June 2026. However, this growth was non-linear and experienced periodic contractions, such as the dip observed in September 2022 and December 2023. The asset base expanded by approximately 32.6% over the entire period, which was insufficient to offset the more rapid accumulation of debt.
- Debt to Assets Ratio Analysis
- The debt-to-assets ratio reflects a progressive deterioration in the solvency margin. Beginning at 0.45 in March 2022, the ratio remained relatively stable until the end of 2022, when it crossed the 0.50 threshold. From 2023 onward, the ratio entered a sustained upward trajectory, moving from 0.50 in March 2023 to a peak of 0.70 by June 2026. This indicates that by the end of the period, 70% of the organization's assets were financed through debt and lease liabilities, representing a substantial increase in financial risk compared to the baseline period.
The divergence between the growth rates of total assets and total debt suggests a strategic shift toward higher leverage. The consistent rise in the ratio during 2025 and 2026, reaching 0.70, highlights a diminishing equity cushion relative to total liabilities.
AI Ask an analyst for more
Financial Leverage
Booking Holdings Inc., financial leverage calculation (quarterly data)
| 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 | 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) | (10,783) | (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. | 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. | 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. | 1.97 | 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: 2026-06-30), 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 Q2 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 29,682 ÷ -10,783 = —
2 Click competitor name to see calculations.
The analysis of the solvency indicators reveals a significant transformation in the capital structure, characterized by a steady expansion of the asset base coupled with a severe erosion of stockholders' equity, leading to a sharp increase in financial leverage.
- Total Assets Trend
- A general upward trajectory is observed in total assets, which grew from 22,384 million USD in March 2022 to a peak of 30,684 million USD in June 2025. While there are periodic quarterly fluctuations, the overall trend indicates a consistent expansion of the company's resource base over the analyzed period.
- Stockholders' Equity Evolution
- A critical shift occurs in the equity position, which transitioned from a positive balance of 4,373 million USD in March 2022 to a substantial deficit. The equity first entered negative territory in June 2023 (-665 million USD) and continued to decline precipitously, reaching a deficit of 10,783 million USD by June 2026. This sustained decline indicates that liabilities have grown to exceed the total value of assets.
- Financial Leverage Analysis
- The financial leverage ratio experienced an aggressive escalation during the initial phase of the data set. Starting at 5.12 in March 2022, the ratio rose to 9.12 by December 2022, before spiking to 23.47 by March 2023. This rapid increase reflects a diminishing equity cushion relative to total assets, signaling a heightened reliance on external financing and a significantly more aggressive capital structure.
The convergence of growing total assets and a deepening equity deficit suggests a strategic or operational shift toward a highly leveraged balance sheet. The transition to negative stockholders' equity implies that the entity is operating with a negative net worth, which fundamentally alters the solvency profile and increases the financial risk associated with its leverage.
AI Ask an analyst for more
Interest Coverage
Booking Holdings Inc., interest coverage calculation (quarterly data)
| 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) | 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 | 610) | 316) | 435) | 721) | 209) | 63) | 496) | 352) | 401) | 161) | 189) | 638) | 328) | 37) | 217) | 510) | 287) | (149) | ||||||
| Add: Interest expense | 300) | 253) | 249) | 301) | 418) | 649) | 507) | 305) | 264) | 219) | 208) | 254) | 241) | 194) | 145) | 102) | 76) | 68) | ||||||
| Earnings before interest and tax (EBIT) | 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 | 9.42 | 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. | 68.26 | 171.79 | 1,046.67 | 307.00 | 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. | 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. | 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: 2026-06-30), 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 Q2 2026 Calculation
Interest coverage
= (EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025)
÷ (Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025)
= (2,860 + 1,652 + 2,112 + 3,770)
÷ (300 + 253 + 249 + 301)
= 9.42
2 Click competitor name to see calculations.
The analysis of solvency metrics reveals a period of significant volatility in the interest coverage ratio, characterized by an initial surge, a prolonged period of contraction, and a subsequent recovery phase through mid-2026.
- Interest Coverage Ratio Trends
- The coverage ratio experienced a rapid ascent from 3.94 in March 2022 to a peak of 11.24 by September 2022. Following this peak, a consistent downward trend emerged, with the ratio declining to a low of 4.16 by June 2025. A recovery trend is evident in the final year of the period, with the ratio climbing back to 9.42 by June 2026.
- Dynamics of Interest Expenses
- Interest expenses exhibited a sustained upward trajectory for several years, increasing from 68 million US dollars in March 2022 to a peak of 649 million US dollars in March 2025. This escalation in financing costs acted as a primary driver for the compression of the interest coverage ratio between 2023 and early 2025. A marked reduction in these expenses occurred after March 2025, stabilizing around 300 million US dollars by June 2026, which contributed to the improvement in solvency margins.
- Earnings Before Interest and Tax (EBIT) Performance
- EBIT demonstrated substantial quarterly fluctuations, ranging from a deficit of 781 million US dollars in March 2022 to a high of 3,770 million US dollars in September 2025. While the earnings volatility created short-term instability in the coverage ratio, the ability to generate higher EBIT in the latter half of 2025 and 2026, coupled with lower interest burdens, facilitated the return to a more robust coverage position.
- Solvency Outlook and Stability
- The period between December 2023 and June 2025 represented the lowest point of interest coverage, where the ratio dropped below 5.00. However, the trajectory from June 2025 onward indicates a strengthening of the company's capacity to service its debt, as the ratio more than doubled within a twelve-month period, moving from 4.16 to 9.42.
AI Ask an analyst for more