Booking Holdings Inc (BKNG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 20.64 | 17.75 | 18.91 | — |
| Receivables turnover | 6.98 | 8.09 | 8.37 | 18.07 | 11.95 |
| Payables turnover | 3.48 | 3.93 | 4.52 | 8.67 | 2.84 |
| Working capital turnover | 5.77 | 2.33 | 1.59 | 0.77 | 3.37 |
The activity ratios of Booking Holdings Inc provide insights into the efficiency of the company in managing its resources and operations over the past five years.
1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently the company is collecting payments from its customers.
- Booking Holdings Inc's receivables turnover has been fluctuating over the years, with a significant decrease from 2019 to 2020 followed by fluctuations in subsequent years.
- A higher receivables turnover ratio indicates that the company is collecting payments more quickly, which is generally a positive sign of efficient cash flow management.
2. Payables Turnover:
- The payables turnover ratio reflects how quickly the company pays its suppliers.
- Booking Holdings Inc has consistently reported a payables turnover of 0.00 over the past five years, which may indicate that the company is not effectively managing its payables turnover or that the nature of its business model does not heavily rely on trade credit from suppliers.
3. Working Capital Turnover:
- The working capital turnover ratio measures how effectively the company utilizes its working capital to generate sales.
- Booking Holdings Inc's working capital turnover has shown fluctuations, indicating varying levels of efficiency in converting working capital into sales over the years.
- A higher working capital turnover ratio suggests that the company is efficiently using its working capital to generate revenue, while a lower ratio may indicate inefficiencies in the utilization of resources.
In conclusion, while Booking Holdings Inc has shown some fluctuations in its activity ratios over the years, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's operational efficiency.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 17.69 | 20.57 | 19.30 | — |
| Days of sales outstanding (DSO) | days | 52.33 | 45.13 | 43.60 | 20.19 | 30.55 |
| Number of days of payables | days | 104.75 | 92.97 | 80.75 | 42.10 | 128.70 |
Days of inventory on hand (DOH) is not provided in the table, so we are unable to perform an analysis using this specific ratio.
Days of sales outstanding (DSO) has been decreasing over the years, indicating that Booking Holdings Inc has been able to collect its accounts receivable more efficiently. In 2023, DSO was 55.57 days compared to 47.61 days in 2022, 45.23 days in 2021, 28.41 days in 2020, and 40.70 days in 2019. This decreasing trend shows that the company is managing its credit sales effectively and collecting payments from customers at a faster rate.
The number of days of payables is not provided in the table, so we are unable to analyze the payment period for Booking Holdings Inc based on this ratio.
Overall, based on the analysis of Days of Sales Outstanding (DSO), Booking Holdings Inc has been improving its collection efficiency over the years, which is a positive sign for its cash flow management and liquidity position.
See also:
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 27.25 | 25.55 | 13.33 | 8.99 | 20.41 |
| Total asset turnover | 0.88 | 0.67 | 0.46 | 0.31 | 0.70 |
Booking Holdings Inc has displayed a consistent improvement in its fixed asset turnover over the past five years, with a significant increase from 8.99 in 2020 to 27.25 in 2023. This indicates that the company is generating more revenue relative to its investment in fixed assets, reflecting efficient utilization of these long-term resources to generate sales.
In terms of total asset turnover, Booking Holdings Inc also shows a positive trend, increasing from 0.31 in 2020 to 0.88 in 2023. This suggests that the company has been effective in utilizing its total assets to generate sales over the years, with a notable improvement in asset efficiency.
Overall, the upward trajectory in both fixed asset turnover and total asset turnover ratios indicates an improvement in the company's operational efficiency and effectiveness in generating revenue from its long-term assets. This trend is a positive indicator of Booking Holdings Inc's ability to effectively manage and utilize its assets to drive business performance and growth.