Stock Analysis on Net

Booking Holdings Inc. (NASDAQ:BKNG)

Analysis of Long-term (Investment) Activity Ratios 

Microsoft Excel

Long-term Activity Ratios (Summary)

Booking Holdings Inc., long-term (investment) activity ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net fixed asset turnover 28.53 27.25 25.55 13.33 8.99
Net fixed asset turnover (including operating lease, right-of-use asset) 17.07 14.35 13.01 8.31 5.29
Total asset turnover 0.86 0.88 0.67 0.46 0.31
Equity turnover 6.14 1.77 1.39

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


The financial data reveals several notable trends across the reported periods.

Net Fixed Asset Turnover
There is a consistent and significant upward trend in the net fixed asset turnover ratio, increasing from 8.99 in 2020 to 28.53 by 2024. This indicates that the company has been improving its efficiency in generating revenue from its net fixed assets over the years.
Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
This ratio also exhibits a steady increase from 5.29 in 2020 to 17.07 in 2024. The rise suggests that when factoring in operating leases and right-of-use assets, the company is still enhancing asset utilization efficiency, though at a lower level compared to the net fixed asset turnover excluding leases.
Total Asset Turnover
The total asset turnover ratio shows a pattern of steady growth from 0.31 in 2020, reaching a peak of 0.88 in 2023, before slightly declining to 0.86 in 2024. This generally positive trend implies improved efficiency in using total assets to generate sales, although the slight dip in the last period may warrant attention.
Equity Turnover
Equity turnover exhibits a marked increase from 1.39 in 2020 to 6.14 in 2022. However, data for 2023 and 2024 is missing, which limits the ability to draw conclusions about recent performance. The sharp rise up to 2022 suggests enhanced efficiency in using shareholders' equity to generate revenue during the early part of the period.

Overall, the observed trends indicate a strengthening in asset utilization efficiency across fixed and total assets. The rapid increases in turnover ratios, particularly net fixed asset turnover, underscore ongoing operational improvements. The slight decline in total asset turnover in the latest period and missing data points in equity turnover should be monitored in future analyses to maintain comprehensive insight into asset use efficiency.


Net Fixed Asset Turnover

Booking Holdings Inc., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Revenues 23,739 21,365 17,090 10,958 6,796
Property and equipment, net 832 784 669 822 756
Long-term Activity Ratio
Net fixed asset turnover1 28.53 27.25 25.55 13.33 8.99
Benchmarks
Net Fixed Asset Turnover, Competitors2
Airbnb Inc. 75.52 61.98 69.41 38.27 12.50
Chipotle Mexican Grill Inc. 4.73 4.55 4.43 4.27 3.78
McDonald’s Corp. 0.95 0.95 0.92 0.94 0.77
Starbucks Corp. 4.17 4.87 4.92 4.56 3.77
Net Fixed Asset Turnover, Sector
Consumer Services 2.75 2.76 2.59 2.27 1.74
Net Fixed Asset Turnover, Industry
Consumer Discretionary 3.22 3.50 3.47 3.31 3.37

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= 23,739 ÷ 832 = 28.53

2 Click competitor name to see calculations.


Revenues
Revenues show a consistent and substantial upward trend over the period analyzed. Starting from 6,796 million USD in 2020, revenues increased sharply to 10,958 million USD in 2021, and continued to rise to 17,090 million USD in 2022. The growth persisted into the subsequent years, reaching 21,365 million USD in 2023 and 23,739 million USD in 2024. This reflects strong and sustained growth in the company's top line.
Property and Equipment, Net
The net value of property and equipment exhibits some fluctuations but remains relatively stable overall. The value increased from 756 million USD in 2020 to 822 million USD in 2021, then declined to 669 million USD in 2022. After this dip, fixed assets increased again to 784 million USD in 2023 and further to 832 million USD in 2024, slightly exceeding the initial 2020 level.
Net Fixed Asset Turnover
The net fixed asset turnover ratio demonstrates a significant upward trend, indicating improved efficiency in utilizing fixed assets to generate revenues. The ratio rose from 8.99 in 2020 to 13.33 in 2021, and then more than doubled to 25.55 in 2022. This strong performance continued with ratios of 27.25 in 2023 and 28.53 in 2024, suggesting increasingly effective asset usage over time despite the relatively stable asset base.

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

Booking Holdings Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Revenues 23,739 21,365 17,090 10,958 6,796
 
Property and equipment, net 832 784 669 822 756
Operating lease assets 559 705 645 496 529
Property and equipment, net (including operating lease, right-of-use asset) 1,391 1,489 1,314 1,318 1,285
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1 17.07 14.35 13.01 8.31 5.29
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2
Airbnb Inc. 38.15 35.54 32.43 13.98 5.16
Chipotle Mexican Grill Inc. 1.77 1.72 1.64 1.54 1.38
McDonald’s Corp. 0.67 0.66 0.64 0.61 0.50
Starbucks Corp. 2.02 2.28 2.21 1.99 1.64
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector
Consumer Services 1.67 1.66 1.55 1.29 0.99
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Consumer Discretionary 2.51 2.68 2.66 2.51 2.57

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 23,739 ÷ 1,391 = 17.07

2 Click competitor name to see calculations.


Revenues
Over the analyzed period, revenues demonstrated a consistent and substantial upward trajectory, growing from 6,796 million US dollars in 2020 to 23,739 million US dollars in 2024. This growth marks more than a threefold increase within five years, with notable acceleration between 2021 and 2022. The trend reflects a strong expansion in the company's sales or service income, indicating successful market penetration or increased customer demand.
Property and Equipment, Net
The net value of property and equipment, including operating lease right-of-use assets, remained relatively stable across the period. Starting at 1,285 million US dollars in 2020, it marginally increased to 1,318 million in 2021, then slightly decreased to 1,314 million in 2022, followed by a rise to 1,489 million in 2023, before a mild decline to 1,391 million in 2024. Overall, this indicates limited fluctuations with no significant expansion in physical assets or lease-related capital investments alongside the rapid revenue growth.
Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
The net fixed asset turnover ratio displays a marked and continuous improvement over the years. It increased from 5.29 in 2020 to 17.07 in 2024, signifying enhanced efficiency in utilizing fixed assets to generate revenues. The sharp incline suggests that the company has increasingly leveraged its asset base more effectively, generating substantially higher revenue per unit of fixed asset. This trend corresponds with the relatively stable asset base combined with strong revenue growth, highlighting operational efficiency and potentially higher asset productivity or utilization.

Total Asset Turnover

Booking Holdings Inc., total asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Revenues 23,739 21,365 17,090 10,958 6,796
Total assets 27,708 24,342 25,361 23,641 21,874
Long-term Activity Ratio
Total asset turnover1 0.86 0.88 0.67 0.46 0.31
Benchmarks
Total Asset Turnover, Competitors2
Airbnb Inc. 0.53 0.48 0.52 0.44 0.32
Chipotle Mexican Grill Inc. 1.23 1.23 1.25 1.13 1.00
McDonald’s Corp. 0.47 0.45 0.46 0.43 0.36
Starbucks Corp. 1.15 1.22 1.15 0.93 0.80
Total Asset Turnover, Sector
Consumer Services 0.75 0.74 0.71 0.59 0.49
Total Asset Turnover, Industry
Consumer Discretionary 0.94 0.97 0.96 0.88 0.84

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Total asset turnover = Revenues ÷ Total assets
= 23,739 ÷ 27,708 = 0.86

2 Click competitor name to see calculations.


Revenues
Revenues increased substantially over the five-year period, growing from 6,796 million US dollars at the end of 2020 to 23,739 million US dollars by the end of 2024. This reflects a strong upward trend with the most significant jump occurring between 2021 and 2022, indicating robust growth momentum.
Total assets
Total assets showed a generally increasing pattern from 21,874 million US dollars in 2020 to 27,708 million US dollars in 2024, with a slight dip observed in 2023. This suggests ongoing asset accumulation with some variability, possibly related to asset revaluation or operational adjustments.
Total asset turnover
The total asset turnover ratio exhibited a marked improvement from 0.31 in 2020 to 0.86 in 2024, indicating enhanced efficiency in using assets to generate revenues. There was a consistent year-over-year increase except for a small decline between 2023 and 2024. The overall trend demonstrates better utilization of assets over time.

Equity Turnover

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Revenues 23,739 21,365 17,090 10,958 6,796
Stockholders’ equity (deficit) (4,020) (2,744) 2,782 6,178 4,893
Long-term Activity Ratio
Equity turnover1 6.14 1.77 1.39
Benchmarks
Equity Turnover, Competitors2
Airbnb Inc. 1.32 1.21 1.51 1.25 1.16
Chipotle Mexican Grill Inc. 3.09 3.22 3.65 3.29 2.96
McDonald’s Corp.
Starbucks Corp.
Equity Turnover, Sector
Consumer Services 23.06
Equity Turnover, Industry
Consumer Discretionary 3.24 3.86 4.21 3.74 4.82

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity (deficit)
= 23,739 ÷ -4,020 =

2 Click competitor name to see calculations.


The financial data reveals several notable trends over the five-year period.

Revenues
There is a consistent and significant increase in revenues from 2020 through 2024. The revenue figures start at approximately 6.8 billion US dollars in 2020 and grow to nearly 23.7 billion US dollars by 2024. This growth is substantial, and the rate of increase appears to accelerate particularly between 2021 and 2023.
Stockholders’ Equity (Deficit)
Stockholders' equity shows a contrasting trend relative to revenues. Initially, it increases from about 4.9 billion US dollars in 2020 to approximately 6.2 billion in 2021, suggesting an improvement in net assets. However, following this peak, equity declines sharply to 2.8 billion in 2022 and then turns negative in 2023 and 2024, with deficits of approximately -2.7 billion and -4.0 billion US dollars, respectively. This shift into negative equity territory suggests significant financial challenges, such as accumulated losses or substantial liabilities exceeding assets.
Equity Turnover
The equity turnover ratio indicates a progressive increase from 1.39 in 2020 to 6.14 in 2022, implying an improved efficiency in utilizing equity to generate revenues. Data for 2023 and 2024 are not available, but the prior trend suggests increased operational leverage or asset utilization up to 2022.

Overall, the company exhibits strong revenue growth, yet the deteriorating equity position points to underlying financial issues that may impact longer-term sustainability. The increase in equity turnover prior to missing data may be reflective of strategic shifts to enhance revenue generation per dollar of equity, but the negative equity values in recent years highlight potential risks that warrant further investigation.