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.
Long-term Activity Ratios (Summary)
Booking Holdings Inc., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
An examination of long-term activity ratios reveals generally positive trends across several key metrics between 2021 and 2025. These trends suggest increasing efficiency in asset utilization and revenue generation relative to equity.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a substantial and consistent increase over the period. Starting at 13.33 in 2021, the ratio more than doubled to reach 33.35 by 2025. This indicates a significant improvement in the company’s ability to generate revenue from its fixed assets. The increasing ratio suggests enhanced operational efficiency or a decrease in the value of net fixed assets relative to revenue.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also exhibits an upward trend, though less pronounced. Increasing from 8.31 in 2021 to 18.71 in 2025, the inclusion of operating lease obligations and right-of-use assets still shows improved revenue generation relative to the broader asset base. The difference between this ratio and the standard net fixed asset turnover suggests that operating leases and right-of-use assets contribute significantly to revenue generation.
- Total Asset Turnover
- The total asset turnover ratio increased from 0.46 in 2021 to 0.88 in 2023, indicating improved efficiency in utilizing all assets to generate revenue. However, the ratio experienced a slight decrease to 0.86 in 2024 before recovering to 0.92 in 2025. While the 2024 dip warrants further investigation, the overall trend remains positive, suggesting effective asset management.
- Equity Turnover
- The equity turnover ratio experienced a dramatic increase from 1.77 in 2021 to 6.14 in 2022. However, subsequent values are unavailable, preventing a complete assessment of the trend. The initial increase suggests a substantial improvement in revenue generation relative to shareholder equity, potentially indicating increased profitability or a decrease in equity investment.
Overall, the observed trends suggest improving efficiency in asset utilization and revenue generation. The consistent increases in net fixed asset turnover ratios are particularly noteworthy. The lack of complete information for the equity turnover ratio limits a full understanding of its trajectory.
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Net Fixed Asset Turnover
Booking Holdings Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 26,917) | 23,739) | 21,365) | 17,090) | 10,958) | |
| Property and equipment, net | 807) | 832) | 784) | 669) | 822) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 33.35 | 28.53 | 27.25 | 25.55 | 13.33 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Airbnb Inc. | 114.40 | 75.52 | 61.98 | 69.41 | 38.27 | |
| Chipotle Mexican Grill Inc. | 4.45 | 4.73 | 4.55 | 4.43 | 4.27 | |
| DoorDash, Inc. | 12.86 | 13.78 | 12.13 | 10.33 | 12.16 | |
| McDonald’s Corp. | 0.88 | 0.95 | 0.95 | 0.92 | 0.94 | |
| Starbucks Corp. | 4.38 | 4.17 | 4.87 | 4.92 | 4.56 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Consumer Services | 2.96 | 2.96 | 2.93 | 2.73 | 2.39 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Discretionary | 2.79 | 3.24 | 3.51 | 3.48 | 3.32 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= 26,917 ÷ 807 = 33.35
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates a consistent upward trend over the five-year period. Revenues have increased substantially, while property and equipment, net, have fluctuated but remained relatively stable, contributing to the observed ratio improvement.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio increased from 13.33 in 2021 to 33.35 in 2025. This indicates a growing efficiency in utilizing fixed assets to generate revenue. The most significant increase occurred between 2021 and 2022, rising to 25.55, followed by continued, though more moderate, gains in subsequent years.
Revenues experienced substantial growth throughout the period, increasing from US$10,958 million in 2021 to US$26,917 million in 2025. This revenue expansion is the primary driver of the increasing net fixed asset turnover ratio.
- Property and Equipment, Net
- Property and equipment, net, decreased from US$822 million in 2021 to US$669 million in 2022, then increased to US$784 million in 2023, US$832 million in 2024, and finally decreased slightly to US$807 million in 2025. These fluctuations, while present, were not substantial enough to offset the impact of revenue growth on the net fixed asset turnover ratio.
The consistent rise in the net fixed asset turnover ratio suggests that the company is becoming increasingly effective at generating sales from its existing fixed asset base. This could be due to factors such as improved operational efficiency, increased demand for its services, or a strategic shift towards less capital-intensive operations.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Booking Holdings Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 26,917) | 23,739) | 21,365) | 17,090) | 10,958) | |
| Property and equipment, net | 807) | 832) | 784) | 669) | 822) | |
| Operating lease assets | 632) | 559) | 705) | 645) | 496) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 1,439) | 1,391) | 1,489) | 1,314) | 1,318) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 18.71 | 17.07 | 14.35 | 13.01 | 8.31 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Airbnb Inc. | 47.63 | 38.15 | 35.54 | 32.43 | 13.98 | |
| Chipotle Mexican Grill Inc. | 1.67 | 1.77 | 1.72 | 1.64 | 1.54 | |
| DoorDash, Inc. | 9.12 | 9.19 | 7.52 | 6.14 | 6.62 | |
| McDonald’s Corp. | 0.63 | 0.67 | 0.66 | 0.64 | 0.61 | |
| Starbucks Corp. | 2.09 | 2.02 | 2.28 | 2.21 | 1.99 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Consumer Services | 1.82 | 1.81 | 1.77 | 1.63 | 1.36 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Discretionary | 2.22 | 2.53 | 2.69 | 2.66 | 2.52 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 26,917 ÷ 1,439 = 18.71
2 Click competitor name to see calculations.
The analysis reveals a consistent upward trend in net fixed asset turnover alongside fluctuating, but generally increasing, revenues and relatively stable net fixed assets. This suggests increasing efficiency in asset utilization over the observed period.
- Revenues
- Revenues demonstrate a substantial increase from US$10,958 million in 2021 to US$26,917 million in 2025. The growth is not linear, with a significant jump between 2021 and 2022, followed by continued, though moderating, increases in subsequent years. This indicates a period of rapid expansion followed by sustained growth.
- Property and Equipment, Net (including operating lease, right-of-use asset)
- Net property and equipment remained relatively stable between 2021 and 2025, fluctuating between US$1,314 million and US$1,489 million. A slight increase is observed overall, but the magnitude of this increase is considerably smaller than the revenue growth. This suggests that the company is not heavily reliant on significant investments in fixed assets to drive revenue increases.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio exhibits a strong and consistent upward trend, increasing from 8.31 in 2021 to 18.71 in 2025. This indicates a significant improvement in the company’s ability to generate revenue from its fixed asset base. The ratio more than doubled over the five-year period, signifying enhanced operational efficiency and effective asset management. The increasing ratio, coupled with stable fixed assets and growing revenues, suggests the company is becoming increasingly proficient at leveraging its existing assets to generate sales.
In summary, the observed trends suggest a business model that is becoming increasingly efficient in its use of fixed assets to generate revenue. The substantial revenue growth, combined with relatively stable fixed asset levels, drives the significant improvement in net fixed asset turnover.
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Total Asset Turnover
Booking Holdings Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 26,917) | 23,739) | 21,365) | 17,090) | 10,958) | |
| Total assets | 29,264) | 27,708) | 24,342) | 25,361) | 23,641) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.92 | 0.86 | 0.88 | 0.67 | 0.46 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Airbnb Inc. | 0.55 | 0.53 | 0.48 | 0.52 | 0.44 | |
| Chipotle Mexican Grill Inc. | 1.33 | 1.23 | 1.23 | 1.25 | 1.13 | |
| DoorDash, Inc. | 0.70 | 0.83 | 0.80 | 0.67 | 0.72 | |
| McDonald’s Corp. | 0.45 | 0.47 | 0.45 | 0.46 | 0.43 | |
| Starbucks Corp. | 1.16 | 1.15 | 1.22 | 1.15 | 0.93 | |
| Total Asset Turnover, Sector | ||||||
| Consumer Services | 0.75 | 0.76 | 0.74 | 0.70 | 0.60 | |
| Total Asset Turnover, Industry | ||||||
| Consumer Discretionary | 0.86 | 0.93 | 0.97 | 0.96 | 0.88 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Total asset turnover = Revenues ÷ Total assets
= 26,917 ÷ 29,264 = 0.92
2 Click competitor name to see calculations.
The total asset turnover ratio demonstrates a clear upward trend over the observed period. Initially, the ratio was 0.46 in 2021, indicating that for every dollar of assets, the company generated 46 cents in revenue. This figure increased substantially to 0.67 in 2022, suggesting improved efficiency in asset utilization.
- Trend Analysis - 2021 to 2023
- The most significant increase in total asset turnover occurred between 2022 and 2023, rising from 0.67 to 0.88. This indicates a considerable improvement in the company’s ability to generate sales from its asset base. Revenues grew at a faster rate than total assets during this period, driving the increase in the ratio.
Following the substantial gain, the ratio experienced a slight decrease in 2024, settling at 0.86. While this represents a minor dip, it does not negate the overall positive trend. The decrease could be attributed to a relatively slower growth in revenues compared to the increase in total assets.
- Trend Analysis - 2024 to 2025
- The ratio resumed its upward trajectory in 2025, reaching 0.92. This final value represents the highest point in the observed period, signifying that the company generated 92 cents of revenue for every dollar of assets. This suggests a continued strengthening of the relationship between asset deployment and revenue generation.
Overall, the observed pattern indicates increasing efficiency in asset utilization. The company appears to be effectively leveraging its assets to generate revenue, with a consistent improvement in the total asset turnover ratio throughout the majority of the analyzed timeframe.
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Equity Turnover
Booking Holdings Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 26,917) | 23,739) | 21,365) | 17,090) | 10,958) | |
| Stockholders’ equity (deficit) | (5,578) | (4,020) | (2,744) | 2,782) | 6,178) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | — | — | — | 6.14 | 1.77 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Airbnb Inc. | 1.49 | 1.32 | 1.21 | 1.51 | 1.25 | |
| Chipotle Mexican Grill Inc. | 4.21 | 3.09 | 3.22 | 3.65 | 3.29 | |
| DoorDash, Inc. | 1.37 | 1.37 | 1.27 | 0.97 | 1.05 | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Equity Turnover, Sector | ||||||
| Consumer Services | 23.02 | 25.84 | 42.99 | 34.91 | 10.21 | |
| Equity Turnover, Industry | ||||||
| Consumer Discretionary | 2.67 | 3.21 | 3.82 | 4.14 | 3.70 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity (deficit)
= 26,917 ÷ -5,578 = —
2 Click competitor name to see calculations.
The analysis reveals a significant fluctuation in equity turnover over the observed period. Revenues demonstrate a consistent upward trend, while stockholders’ equity exhibits a dramatic shift from positive values to substantial deficits.
- Equity Turnover
- In 2021, the equity turnover ratio stood at 1.77. This indicates that for every dollar of equity, the company generated $1.77 in revenue. A substantial increase is observed in 2022, with the ratio rising to 6.14. This suggests a significantly improved efficiency in generating revenue from the equity base. However, the ratio is not available for the years 2023, 2024, and 2025. This absence coincides with the transition of stockholders’ equity into negative territory, rendering the traditional equity turnover calculation meaningless.
The movement in stockholders’ equity is particularly noteworthy. Beginning at US$6,178 million in 2021, it decreased to US$2,782 million in 2022. This decline accelerated in subsequent years, resulting in a deficit of US$2,744 million in 2023, US$4,020 million in 2024, and US$5,578 million in 2025. This substantial erosion of equity likely explains the lack of reported equity turnover figures for the later years.
Revenues consistently increased throughout the period, moving from US$10,958 million in 2021 to US$26,917 million in 2025. This growth occurred concurrently with the decline in stockholders’ equity, suggesting that revenue generation is not directly translating into increased equity value, and may be funded by other means, or through a reduction in equity.
The increasing revenue alongside decreasing equity raises questions about the company’s capital structure and financial health. Further investigation into the reasons behind the equity deficit is warranted to fully understand the implications of these trends.
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