Booking Holdings Inc. (NASDAQ:BKNG)

The analysis of the financial turnover ratios and related periods over the examined quarters reveals several notable patterns and fluctuations.

Receivables Turnover

The receivables turnover ratio demonstrates variability across the periods, with initial values around 9.64 and a general decrease through mid-2021, followed by oscillations between approximately 5.7 and 8.9 in subsequent quarters. This suggests fluctuations in the efficiency of collecting receivables, with occasional improvements but no consistent upward or downward trend.

Payables Turnover

The payables turnover ratio also experiences variability, starting near 9.91 and showing a declining trend into mid-2021, with values ranging from about 5.7 to 9.1 in later periods. The pattern suggests some instability in the company's pace of paying suppliers, marked by irregular periods of faster and slower payments.

Working Capital Turnover

This ratio indicates a general upward trend from 0.74 initially to peaks exceeding 7 in the later years, albeit with notable fluctuations. Significant increases occur around late 2023 and mid-2024, followed by some decreases, indicating a variable but improving ability to generate sales from working capital over time.

Average Receivable Collection Period

The average days to collect receivables increase sharply from a low of 38 days to over 66 days early on, then fluctuate mostly between 41 and 64 days in later quarters. The data indicates some challenges in maintaining consistent collection efficiency, with periods of lengthened collection times impacting cash flow.

Average Payables Payment Period

The average days taken to pay suppliers range broadly from about 37 days initially to peaks reaching up to 64 days. This metric demonstrates inconsistency, with both shorter and extended payment periods, reflecting varying supplier payment strategies or cash management policies.

Overall, the turnover and payment period metrics reflect dynamic management of receivables, payables, and working capital. While working capital turnover shows some long-term improvement, the variability in receivables and payables turnover ratios and collection/payment periods points to ongoing fluctuations in operational efficiency and cash cycle management.

Revenues

Revenues displayed a general upward trend from March 2021 through September 2021, rising sharply from 1,141 million to 4,676 million US dollars. This was followed by a decline in the December 2021 quarter to 2,981 million. In 2022, revenues fluctuated, initially increasing in the first three quarters to a peak of 6,052 million in September but dropping again in the last quarter to 4,049 million. The pattern of quarterly fluctuations persisted through 2023 and into 2025, with revenues increasing in certain quarters (notably the third quarter of most years) and decreasing in others, showing a degree of seasonality or cyclicality. The highest recorded revenue was 9,008 million US dollars in September 2025, indicating growth over the period despite interim volatility.

Accounts Receivable, Net of Allowance for Expected Credit Losses

The accounts receivable balance increased significantly from 586 million in March 2021 to 2,284 million by September 2022. After this peak, the balance showed some fluctuations but generally held within a range of approximately 2,200 to 3,800 million through 2023 and 2024, before a decrease again by late 2025. The data suggests that the receivables correspond with revenue trends but do not mirror them perfectly, indicating possible changes in collections or credit policies.

Receivables Turnover Ratio

The receivables turnover ratio started at a relatively high 9.64 in March 2021, fell significantly to between 5.5 and 6 in the mid-2021 period, and then fluctuated mostly between 5.7 and 8.9 over subsequent quarters. Higher turnover ratios generally indicate faster collection of receivables; thus, the initial decline and subsequent fluctuations imply some volatility in the efficiency of receivables collection. Peaks often coincided with quarters showing revenue contraction, suggesting efforts to improve collections during slower revenue periods. Overall, the turnover ratio reveals variable but adequate collection efficiency through the observed period.

Revenues

Revenues demonstrate a cyclical pattern with significant seasonality. There is a clear peak typically observed in the third quarter of each year, followed by a notable dip in the fourth quarter. This seasonal spike suggests increased business activity during these periods. Over the analyzed timeline, there is a general upward trend in revenues, with values rising from 1,141 million USD in the first quarter of 2021 to 9,008 million USD by the third quarter of 2025. The growth is especially pronounced from 2023 onward, indicating an accelerating expansion in revenue-generating capacity. The first quarter of each year tends to show lower revenue compared to the peak quarters but tends to increase year-over-year, indicating gradual improvement despite seasonal impacts.

Accounts Payable

Accounts payable also exhibit seasonality aligned somewhat with revenue patterns but tend to lag or exhibit a less consistent pattern. Payables values increase generally over the period, moving from 570 million USD in March 2021 to a peak around 4,280 million USD in June 2025, followed by a slight reduction thereafter. The values fluctuate within each year but on an increasing trajectory overall, indicating expanding operational scale and potentially greater purchasing or credit usage from suppliers. However, the largest jumps in payables do not always coincide exactly with revenue peaks.

Payables Turnover Ratio

The payables turnover ratio exhibits volatility across quarters without a clear upward or downward long-term trend. The ratio starts at 9.91 in the first quarter of 2021, reaching its lowest values between 5.67 and 6.98 in various quarters, and fluctuates down to around 6.47 by the third quarter of 2025. Periods of revenue peak generally correspond with moderate payables turnover ratios, suggesting that even while revenues increase, the speed at which payables are settled does not accelerate proportionately. The decrease in payables turnover from early high levels indicates that the company may be taking longer to pay off its suppliers over time or that payables balances are rising faster than cost of goods or services consumed.

Working Capital

The working capital demonstrated notable volatility throughout the observed periods. Starting at a high of 7,640 million USD in March 2021, it experienced a general decline through 2022, reaching a low point in September 2022 at 3,867 million USD. Subsequently, the metric fluctuated up and down, recovering somewhat to 7,324 million USD by December 2022 but then declining again towards the end of the period, finishing at 5,438 million USD in September 2025. This pattern indicates intermittent liquidity variations, with no clear sustained upward or downward trajectory over the full timeframe.

Revenues

Revenues exhibited an overall upward trend with considerable seasonality and short-term fluctuations. Initial revenues were 1,141 million USD in March 2021 and increased substantially by September 2021 to 4,676 million USD, followed by a decline at year-end. Throughout 2022 and 2023, revenues generally rose with periodic decreases at the end of each year. The highest revenues were recorded in September 2025 at 9,008 million USD. This growth pattern suggests expanding market activity or service uptake, tempered by regular seasonal downturns.

Working Capital Turnover

The working capital turnover ratio showed a marked increase from 0.74 in March 2021 to a peak of 7.26 in September 2024. This rising ratio implies improving efficiency in the use of working capital to generate revenue. There were some fluctuations with slight reductions in several quarters after peaking, particularly towards the end of the period, which culminated in a ratio of 4.79 by September 2025. The increase from early 2021 to mid-2024 indicates better capital utilization over time despite the subsequent moderation.

Summary

The financial data reveals a company experiencing growth in revenues with distinct seasonal patterns, alongside improvements in efficiency as evidenced by the rise in working capital turnover. Despite the fluctuations and overall decline in working capital levels, the company appears to be generating increasing revenues from a relatively smaller working capital base over the long term. This suggests enhanced operational efficiency and potentially stronger cash flow management. However, the volatility in working capital warrants attention to liquidity management to sustain ongoing growth.

The analysis of the quarterly financial data reveals notable fluctuations and trends in the receivables turnover ratio and the average receivable collection period over the observed periods.

Receivables Turnover Ratio

The ratio exhibits a generally fluctuating pattern, with significant decreases and recoveries over time. Initially, there is a high turnover of 9.64 in March 2021, followed by a sharp decline to values around 5.5 to 6.0 during the middle of 2021. This suggests a slower rate of converting receivables into cash during those quarters. Subsequently, the ratio improves towards the end of 2021 and into early 2022, moving back towards the 7.5 to 8.0 range, indicating a more efficient collection process. However, through 2023 and 2024, the turnover ratio again oscillates mainly between the mid-5 to mid-6 range, before showing a recovery in late 2024 and early 2025 rising above 7.0 before dipping slightly again in mid-2025. This variability could reflect changes in credit policy, customer payment behaviors, or sales trends impacting receivable collections.

Average Receivable Collection Period

The average collection period in days generally moves inversely to the receivables turnover ratio, as expected. Starting at a relatively shorter collection period of 38 days in early 2021, there is an increase reaching above 60 days during mid-2021, indicating a slowing in cash collection from customers. This longer duration aligns with the decreased turnover during the same period. As turnover improves in late 2021 and early 2022, the collection period shortens back to the 40-50 day range, suggesting better cash flow management. Throughout 2023 and 2024, the collection period oscillates largely between 50 to 62 days, reflecting a moderate but less efficient collection environment compared to the early periods. In early 2025, there is a slight improvement with days dropping close to 49 days but again extends toward mid-60s subsequently, matching the slight decrease in turnover rates.

Overall Insights

The data indicates periods of both stronger and weaker receivables management. The fluctuations in turnover ratios and collection periods imply varying levels of efficiency in converting sales to cash. The company experienced a more efficient collections environment around the end of 2021 through early 2022, while other periods show moderately slower collections. These trends could be influenced by external macroeconomic factors, changes in customer payment terms, or internal credit policies. Regular monitoring and targeted strategies may help stabilize and improve receivables performance, reducing the collection period and increasing turnover consistency.

Payables Turnover Ratio

The payables turnover ratio exhibits notable fluctuations across the observed periods. Initially, the ratio starts relatively high at 9.91, then decreases significantly to around 6.29 to 6.98 over the mid-2021 quarters. A temporary recovery occurs in early 2022 with values rising up to 8.32, followed by inconsistent changes maintaining a range roughly between 5.7 and 9.11 through the subsequent quarters. Towards the latter part of the data, the ratio exhibits a moderate decline and fluctuations around the 6.0 to 7.5 level. This pattern suggests variability in the company's frequency of payables settlements, indicating periods of both faster and slower payment cycles without a clear linear trend.

Average Payables Payment Period (Days)

The average payables payment period inversely mirrors the payables turnover trend as expected. It starts with a relatively short period of 37 days, then lengthens substantially to peaks above 50 days, reaching 58 days by late 2021. This longer payment period generally continues, though it dips occasionally to shorter periods close to 40 days in early 2023. Subsequent quarters see extended periods peaking around 64 days, suggesting slower payments to suppliers or creditors in those intervals. The degree of variability indicates that the company's payment practices undergo significant changes, with some quarters reflecting quicker payments and others prolonged intervals.

Overall Insights

The inverse relationship between the payables turnover and average payment period is consistently evident. The data reveals a pattern of fluctuating payables management, with no sustained trend toward systematic improvement or deterioration in payment timeliness. These fluctuations may be attributed to changes in operational cash management strategies, negotiation terms with suppliers, or external economic factors impacting liquidity. The absence of a clear directional trend highlights the dynamic nature of the company's payable cycle and suggests the need for continuous monitoring to optimize working capital efficiency.