Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Profitability Ratios (Summary)
Booking Holdings Inc., profitability ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Return on Sales | ||||||
| Operating profit margin | ||||||
| Net profit margin | ||||||
| Return on Investment | ||||||
| Return on equity (ROE) | ||||||
| Return on assets (ROA) | ||||||
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).
The profitability metrics demonstrate a generally positive trend over the observed period, though with some variation. Operating and net profit margins both exhibited improvement from 2021 to 2024, followed by a slight adjustment in the most recent year. Asset efficiency, as measured by Return on Assets, consistently increased through 2023 before moderating in 2024 and 2025. Return on Equity experienced a significant increase in 2022, but subsequent values are unavailable for comparison.
- Operating Profit Margin
- The operating profit margin increased from 22.78% in 2021 to 29.85% in 2022, representing a substantial improvement. This upward trajectory continued, reaching 31.83% in 2024, before settling at 32.79% in 2025. This indicates increasing efficiency in core operations and cost management.
- Net Profit Margin
- Similar to the operating profit margin, the net profit margin showed considerable growth, rising from 10.63% in 2021 to 17.89% in 2022. The trend continued with increases to 20.07% in 2023 and a peak of 24.78% in 2024. However, the net profit margin decreased to 20.08% in 2025, suggesting potential impacts from non-operating factors or a normalization after the strong performance in 2024.
- Return on Equity
- Return on Equity experienced a dramatic increase from 18.86% in 2021 to 109.92% in 2022. However, values for 2023, 2024, and 2025 are not available, precluding any assessment of subsequent performance or sustainability of this initial increase. The absence of this information limits a comprehensive understanding of shareholder value creation.
- Return on Assets
- Return on Assets demonstrated a consistent upward trend from 4.93% in 2021 to 12.06% in 2022. This positive momentum continued, reaching 17.62% in 2023 and peaking at 21.23% in 2024. The ratio then decreased slightly to 18.47% in 2025, indicating a continued, though moderated, level of efficiency in utilizing assets to generate profit.
Overall, the observed profitability ratios suggest improving financial performance between 2021 and 2024. The slight decline in net profit margin and return on assets in 2025 warrants further investigation to determine the underlying causes and potential implications. The lack of Return on Equity figures beyond 2022 represents a significant gap in the analysis.
Return on Sales
Return on Investment
Operating Profit Margin
Booking Holdings Inc., operating profit margin 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) | ||||||
| Operating income | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Operating Profit Margin, Sector | ||||||
| Consumer Services | ||||||
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | ||||||
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
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The operating profit margin exhibited a generally positive trend over the five-year period. Initial values demonstrate a substantial increase followed by moderate fluctuations, ultimately culminating in the highest observed margin in the final year.
- Operating Profit Margin Trend
- In 2021, the operating profit margin stood at 22.78%. A significant increase was observed in 2022, reaching 29.85%. This represents a substantial improvement in profitability. A slight decrease followed in 2023, with the margin declining to 27.31%. However, the margin rebounded strongly in 2024, rising to 31.83%, and continued this upward trajectory in 2025, reaching a peak of 32.79%.
The consistent growth in operating income, coupled with increasing revenues, contributed to the overall positive trend in the operating profit margin. While a minor dip occurred in 2023, the subsequent recovery and continued expansion suggest effective cost management and pricing strategies. The final year’s margin indicates improved operational efficiency and a stronger ability to convert revenue into profit.
- Relationship to Revenue and Operating Income
- Revenues increased consistently throughout the period, from US$10,958 million in 2021 to US$26,917 million in 2025. Operating income also demonstrated consistent growth, rising from US$2,496 million in 2021 to US$8,825 million in 2025. The operating profit margin’s positive trend suggests that operating income grew at a faster rate than revenues, indicating improved profitability.
The observed pattern suggests a strengthening financial performance, with the company demonstrating an increasing capacity to generate profit from its core operations. The sustained increase in the operating profit margin is a positive indicator of financial health and operational effectiveness.
Net Profit Margin
Booking Holdings Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Net Profit Margin, Sector | ||||||
| Consumer Services | ||||||
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | ||||||
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 profit margin = 100 × Net income ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The net profit margin demonstrates a clear upward trend over the observed period, followed by a recent moderation. Net income and revenues both increased consistently, but the rate of increase in net income outpaced that of revenues, driving margin expansion for several years.
- Net Profit Margin Trend
- In 2021, the net profit margin stood at 10.63%. This figure increased substantially to 17.89% in 2022, indicating improved profitability. The margin continued its ascent, reaching 20.07% in 2023 and peaking at 24.78% in 2024. However, in 2025, the net profit margin experienced a decrease to 20.08%, suggesting a potential stabilization or a shift in the cost structure relative to revenue.
The substantial growth in net profit margin from 2021 to 2024 suggests effective cost management, increased pricing power, or a favorable shift in the revenue mix. The decline observed in 2025 warrants further investigation to determine the underlying causes. While both net income and revenues continued to grow in absolute terms, the slower growth in net income relative to revenue is responsible for the margin contraction.
- Revenue and Net Income Relationship
- Revenues increased from US$10,958 million in 2021 to US$26,917 million in 2025, representing a significant overall increase. Net income also rose considerably, moving from US$1,165 million in 2021 to US$5,404 million in 2025. The consistent growth in both metrics is positive, but the margin analysis highlights the changing relationship between them.
The period between 2022 and 2024 demonstrates a particularly strong correlation between revenue growth and margin expansion. The 2025 results indicate that maintaining this level of profitability may be challenging, and future performance will need to be monitored to assess whether the 2025 margin represents a new normal or a temporary fluctuation.
Return on Equity (ROE)
Booking Holdings Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | ||||||
| Stockholders’ equity (deficit) | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| ROE, Sector | ||||||
| Consumer Services | ||||||
| ROE, Industry | ||||||
| Consumer Discretionary | ||||||
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
ROE = 100 × Net income ÷ Stockholders’ equity (deficit)
= 100 × ÷ =
2 Click competitor name to see calculations.
The analysis reveals a volatile pattern in the return on equity (ROE) over the observed period. Net income demonstrates a consistent upward trajectory from 2021 to 2024, followed by a slight decrease in 2025. However, stockholders’ equity exhibits a markedly different trend, transitioning from a positive value to a substantial deficit over the same timeframe. This dynamic significantly impacts the ROE calculation.
- Return on Equity (ROE)
- In 2021, ROE stood at 18.86%. A dramatic increase is observed in 2022, reaching 109.92%. The subsequent years lack reported ROE values. This absence is directly attributable to the negative stockholders’ equity, rendering the ROE calculation mathematically undefined. The shift from positive to negative equity is the primary driver of this reporting change.
The substantial growth in net income from 2021 to 2024 did not translate into a corresponding increase in stockholders’ equity. Instead, equity diminished considerably, ultimately resulting in a deficit. This suggests that factors such as share repurchases, dividend payouts, or accumulated losses are outweighing the positive impact of profitability on equity. The continued negative equity position in 2024 and 2025 prevents the calculation of ROE, limiting the ability to assess the company’s profitability relative to shareholder investment during those periods.
The divergence between net income and stockholders’ equity warrants further investigation. Understanding the specific reasons for the decline in equity is crucial for evaluating the company’s long-term financial health and sustainability. The lack of ROE figures for the later years highlights a potential risk factor and necessitates a deeper analysis of the underlying equity trends.
Return on Assets (ROA)
Booking Holdings Inc., ROA 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) | ||||||
| Net income | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| ROA, Sector | ||||||
| Consumer Services | ||||||
| ROA, Industry | ||||||
| Consumer Discretionary | ||||||
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
ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) demonstrates a consistent upward trajectory over the observed period, followed by a slight decline in the most recent year. Net income increased substantially from 2021 to 2024, while total assets fluctuated, contributing to the observed ROA movement.
- ROA Trend
- The ROA began at 4.93% in 2021 and increased significantly to 12.06% in 2022. This growth continued, reaching a peak of 21.23% in 2024. A modest decrease to 18.47% was noted in 2025.
- Net Income Influence
- Net income experienced substantial growth from US$1,165 million in 2021 to US$5,882 million in 2024. While net income decreased slightly to US$5,404 million in 2025, it remained significantly higher than the 2021 level. This increase in net income was a primary driver of the ROA improvement from 2021 through 2024.
- Asset Impact
- Total assets increased from US$23,641 million in 2021 to US$27,708 million in 2024, contributing to the ROA changes. The asset base continued to grow to US$29,264 million in 2025. The slower growth in net income relative to the asset increase in 2025 likely contributed to the observed decline in ROA during that year.
The substantial increase in ROA from 2021 to 2024 suggests improved efficiency in utilizing assets to generate profit. The slight decrease in ROA in 2025 warrants further investigation to determine if this represents a temporary fluctuation or the beginning of a new trend.