Booking Holdings Inc. (NASDAQ:BKNG)

Receivables Turnover

The receivables turnover ratio shows notable fluctuations over the observed periods. Initially high at 12.85 in March 2020, the ratio decreased sharply, reaching a low of approximately 5.57 to 5.98 during late 2020 and into 2021. Following this decline, the ratio demonstrates some recovery and moderate volatility, with values oscillating between roughly 5.87 and 8.87 through 2022 to early 2024. The most recent figures for late 2024 and early 2025 depict a slight upward trend, stabilizing around 7.3. Overall, the trend reflects periods of declining efficiency in receivables turnover followed by partial recoveries.

Payables Turnover

The payables turnover ratio follows a somewhat similar fluctuating pattern. After starting around 9.25, it increased modestly to 9.91 in mid-2020, then dropped substantially to levels around 6 to 7 for most periods through 2021 to 2023. A period of volatility is observed with occasional peaks above 8, notably in mid-2022 and mid-2023. In the latest periods, the turnover declined to below 6 before recovering again to over 7 by early 2025. This suggests variability in the rate at which the company is paying its suppliers, alternating between faster and slower payment periods.

Working Capital Turnover

The working capital turnover ratio shows a clear upward trajectory over the timeline. Starting from moderate levels under 1 in early 2020, the ratio increases steadily, reaching its peak in late 2023 and early 2024 with values above 7. This indicates improved efficiency in using working capital to generate revenue. However, some dips are visible, notably a decrease from peaks in 2024 to mid-2025, though the overall trend remains positive, reflecting enhanced operational efficiency and resource utilization over the long term.

Average Receivable Collection Period

The average receivable collection period experiences considerable variation. It was relatively low around 28 days in early 2020, then increased substantially to over 60 days in late 2020 and early 2021. After this spike, the period fluctuated mostly between 41 and 62 days, indicating cyclical changes in the company's effectiveness at collecting receivables. The most recent values around 49 to 50 days suggest a relatively stable collection period, somewhat higher than the earliest observation but consistent towards the end of the data.

Average Payables Payment Period

The average payables payment period demonstrates fluctuations with an overall slight increasing tendency over time. Values increased from roughly 39 days in early 2020 to peaks above 59 days in several periods including late 2021 and mid-2024. The data indicates that the company extended the time it takes to pay its suppliers during certain intervals but also shows intermittent reductions in payment period. The recent decrease toward 50 days suggests some normalization in payment behavior.

Revenues

The revenue figures demonstrate significant volatility over the reported quarters. Early in the period, revenues fluctuate considerably, with a notably low figure in the second quarter of 2020 at 630 million US dollars, followed by a sharp increase to 2640 million in the third quarter of 2020. From the first quarter of 2021 through the end of 2022, revenues generally show an upward trend with occasional quarterly declines. The highest revenue recorded is 7994 million US dollars in the third quarter of 2024. However, this peak is followed by a decline in the fourth quarter of 2024 and the first quarter of 2025, indicating some instability despite the overall growth pattern.

Accounts receivable, net of allowance for expected credit losses

Accounts receivable values also exhibit upward trends with fluctuations. Starting at 667 million US dollars in the first quarter of 2020, values decline slightly in the following quarter but increase markedly through the rest of 2020 and into 2021. The receivable balance peaks at 3447 million in the third quarter of 2023, then decreases somewhat by the first quarter of 2025 to 3290 million. The general pattern suggests expanding credit extended to customers, aligning with the increasing revenue trend over the longer term, albeit with fluctuations.

Receivables turnover ratio

The receivables turnover ratio is disclosed from the third quarter of 2020 onward. This ratio shows a declining trend from a high of 12.85 in September 2020 down to 5.57 and 5.93 in late 2020 and early 2021, indicating a slower collection pace during this period. Subsequently, the ratio stabilizes with minor oscillations, mostly ranging between 5.87 and 8.87 in subsequent quarters. The decreased turnover ratio in early periods suggests that accounts receivable were being collected more slowly, possibly reflecting longer payment terms or decreased efficiency in collections amid fluctuating revenues.

Interrelations and insights

Overall, revenues and accounts receivable increase over the period with notable quarterly variations. The rising accounts receivable alongside revenue growth may point to more liberal credit terms or slower customer payments. The receivables turnover trend, decreasing initially and then stabilizing at a moderate level, supports this interpretation. The data reflects the challenges in maintaining consistent collection cycles amid wide revenue fluctuations, which can impact liquidity. The peak in revenues during the third quarter of 2024 followed by a decline suggests potential cyclical or operational factors affecting sales, warranting further monitoring.

Revenues Trend Analysis

The revenue figures exhibit significant volatility over the analyzed periods. Initially, revenues dropped sharply from 2,288 million USD in March 2020 to 630 million USD in June 2020. Subsequently, there was a strong recovery to 2,640 million USD by September 2020 and further fluctuations through 2021. Throughout 2022 and 2023, revenues demonstrated a rising trend with quarter-to-quarter growth reaching a peak at 7,341 million USD in September 2023, followed by a decrease to 4,784 million USD in December 2023. Early 2024 shows mixed performance, with values oscillating between 4,415 million USD and 7,994 million USD, before declining to 4,762 million USD in March 2025.

Accounts Payable Trend Analysis

Accounts payable values follow a generally increasing trajectory over time, rising from 926 million USD in March 2020 to a peak of 4,065 million USD in September 2024. Periods of increase are occasionally interrupted by moderate declines, such as notable dips in March 2021 (570 million USD) and March 2023 (2,132 million USD). The consistent growth in accounts payable suggests increasing obligations or supplier credit utilization paralleling revenue growth, despite some short-term discrepancies.

Payables Turnover Ratio Analysis

The payables turnover ratio shows a downward trend over the observed quarters after an initial peak of 9.91 in June 2020. The ratio gradually declines to reach a low of 5.67 in September 2024, indicating a slowing in the rate at which the company pays off its suppliers relative to its purchases. This decline suggests that, despite growing accounts payable balances, the company may be taking longer to settle its obligations or that purchases are increasing at a different pace than payments. There is a slight uptick in the final reported quarter with a ratio of 7.32, demonstrating some improvement in efficiency in accounts payable management.

Overall Observations

Revenues and accounts payable have both trended upward over the period, though revenues exhibit more pronounced volatility compared to accounts payable. The declining payables turnover ratio implies increasing reliance on supplier credit or slower payment cycles. The interplay between these metrics suggests a scaling business activity with evolving working capital management needs. The recent partial recovery in the payables turnover ratio may indicate adjustment efforts toward optimizing payment terms or cash flow management.

Working Capital

The working capital exhibits significant fluctuations over the observed periods. It begins moderately high at 5124 million USD in March 2020, reaching a peak of 8781 million USD by December 2020. Following this peak, there is a general declining trend through mid-2022, with the lowest point of 3087 million USD occurring in September 2024. Despite this decrease, there are intermittent recoveries, such as in December 2022 with 7324 million USD and a slight rebound in March 2025 to 3556 million USD after a trough in December 2024. Overall, the working capital trend shows volatility with periods of expansion and contraction, indicating variability in short-term financial resources and liquidity management.

Revenues

Revenues display a pattern of volatility with notable quarterly variations. Starting at 2288 million USD in March 2020, revenues dip significantly to 630 million USD in June 2020, likely reflecting external disruptions. A recovery trend follows, with revenues generally increasing and peaking at 7994 million USD in September 2024. Despite fluctuations, there is a visible upward trajectory over the longer term, especially from 2021 onwards, indicating resilience and growth potential. However, some quarters, such as December 2022 and March 2025, show softer revenue figures, highlighting ongoing variability in revenue generation.

Working Capital Turnover

The working capital turnover ratio starts from lower values around 0.74 to 1.07 in early 2021 and shows a marked upward trend over time. This ratio increases significantly, reaching above 6.0 by mid to late 2024, with a peak of 7.26 in September 2024. Such an increase suggests enhanced efficiency in utilizing working capital to generate revenues, meaning the company is able to generate more revenue per unit of working capital invested. The sharp rise in turnover ratio coincides with periods of decreasing working capital and increasing revenue, reflecting improved operational efficiency.

Summary Insights

The data reveals a dynamic financial environment characterized by shifting liquidity and operational efficiency. The declining working capital paired with rising revenues and working capital turnover indicates a strategic move towards better capital utilization. The trend in working capital turnover particularly underscores an improvement in managing short-term assets and liabilities effectively. However, the volatility in both working capital and revenues suggests exposure to fluctuating market conditions or operational challenges. Continuous monitoring of these metrics is advisable to sustain growth and maintain liquidity balance.

Receivables Turnover Ratio Trend

The receivables turnover ratio was first reported at 12.85 in March 2020. Afterward, there was a notable decline, dropping to 9.64 in June 2020 and sharply down to 5.57 by September 2020. During the following quarters through the end of 2021, the ratio fluctuated moderately between 5.93 and 8.07, indicating some volatility in receivables collection efficiency. From early 2022 to early 2025, the ratio remained within a range roughly spanning 5.87 to 8.87. Notably, the highest ratio in this period was 8.87 in June 2023, while the lowest was 5.87 in September 2024. This pattern suggests a stable but moderately lower turnover rate compared to the initial quarter reported.

Average Receivable Collection Period Trend

The average receivable collection period started at 28 days in March 2020, increasing substantially to 38 days by June 2020, and further rising to 66 days by September 2020. Over the subsequent quarters, this metric showed some cyclicality, fluctuating between the mid-40s to low-60s days through the end of 2021. From early 2022 onward, the average collection period largely remained within a range from about 41 to 62 days, showing no clear long-term improvement or deterioration. Peaks near the 60-day mark were observed intermittently, with the lowest collection period at 41 days reported in March 2022 and the highest reaching 62 days in September 2024.

Relationship Between Metrics

The inverse relationship between receivables turnover and average collection period is consistent throughout the quarters analyzed. As the receivables turnover ratio decreases, the collection period lengthens, indicating slower receivables turnover and longer cash inflow cycles. The sharp decline in turnover in 2020 corresponds with a marked increase in the number of days required for receivable collection, suggesting potential operational or market challenges impacting collections during that time.

Overall Insights

The financial data reflect a significant shift around 2020 with a deterioration in receivables management efficiency. Post-2020, the metrics stabilize but do not return to the higher turnover and lower collection period levels previously observed. This suggests a sustained change in either customer payment behavior, credit policy, or external factors affecting collection processes. The relatively stable trends from 2022 onward imply that these conditions have become normalized, with moderate fluctuations but no evident ongoing improvement or degradation.

The payables turnover ratio exhibits notable fluctuations over the observed periods, with an initial increasing trend peaking at 9.91 before declining to a low of 5.7. Subsequently, the ratio rises again, reaching 7.32 towards the end of the timeframe analyzed. This pattern indicates variability in the efficiency with which payables are managed, suggesting cycles of faster and slower payments to suppliers.

Correspondingly, the average payables payment period shows an inverse pattern, as expected. Starting with relatively lower values near 37 days, it rises to a peak of 64 days during the middle to later stages. Thereafter, the payment period decreases somewhat to 50 days by the end of the period. This shift reflects changes in the average duration the company takes to settle its obligations, with periods of extended payment times interspersed with shorter payment intervals.

Payables Turnover Ratio

The ratio starts strong around 9.25 to 9.91, indicating rapid payment cycles. After reaching this peak, there is a decline towards 5.7, implying slower turnover of payables. This is followed by a moderate recovery to 7.32, suggesting an improving though still fluctuating payment efficiency.

Average Payables Payment Period

The payment period decreases initially to about 37 days but then increases significantly to a high of 64 days, marking a phase where payments are being delayed longer. Towards the final periods, the payment duration reduces again to around 50 days, signaling a tightening of payment practices.

Overall, the data reflects cyclical changes in the company's management of payables, potentially influenced by cash flow management strategies or external economic conditions affecting supplier negotiations and payment policies. The inverse relationship between the turnover ratio and payment period aligns with standard financial behavior, confirming consistency in the data.