Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
Booking Holdings Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Consumer Services | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Discretionary | ||||||
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
= ÷ =
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
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property and equipment, net | ||||||
| Operating lease assets | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Consumer Services | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Discretionary | ||||||
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)
= ÷ =
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
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Consumer Services | ||||||
| Total Asset Turnover, Industry | ||||||
| Consumer Discretionary | ||||||
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
= ÷ =
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
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Stockholders’ equity (deficit) | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Consumer Services | ||||||
| Equity Turnover, Industry | ||||||
| Consumer Discretionary | ||||||
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)
= ÷ =
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.