Booking Holdings Inc (BKNG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 1.27 | 1.48 | 1.91 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 4.90 | 5.77 | 2.33 | 1.59 | 0.77 |
Based on the provided data, let's analyze the activity ratios of Booking Holdings Inc:
1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently the company manages its inventory. A higher ratio implies faster turnover.
- The trend for Booking Holdings Inc shows a decrease in inventory turnover from 1.91 in 2020 to 1.27 in 2022.
- The declining trend may suggest potential issues with inventory management or a slowdown in sales.
2. Receivables Turnover:
- The receivables turnover ratio reflects how quickly the company collects its accounts receivable from customers.
- In the data, receivables turnover values are not provided for any year, indicating a lack of information to assess this aspect of the company's operations.
- Without receivables turnover data, it is difficult to evaluate the efficiency of the company's credit and collection policies.
3. Payables Turnover:
- The payables turnover ratio indicates how quickly the company pays its suppliers.
- Similar to receivables turnover, data for payables turnover is missing for all years, making it challenging to analyze the company's payment practices and relationships with suppliers.
4. 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 an increasing trend from 0.77 in 2020 to 4.90 in 2024.
- The rising trend indicates that the company is generating more revenue per unit of working capital, which can be a positive sign of operational efficiency and effective capital utilization.
In conclusion, while the working capital turnover ratio of Booking Holdings Inc has improved significantly over the years, the lack of data for inventory, receivables, and payables turnover ratios hinders a comprehensive assessment of the company's overall activity and financial performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 286.83 | 246.18 | 191.60 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Booking Holdings Inc, the activity ratios can be analyzed as follows:
1. Days of Inventory on Hand (DOH):
- For December 31, 2020, the company had 191.60 days of inventory on hand.
- This figure increased to 246.18 days as of December 31, 2021, indicating a longer time taken to sell inventory.
- By December 31, 2022, the DOH ratio further increased to 286.83 days, showing a trend of increasing inventory holding period over time.
- There is no data available for December 31, 2023 and December 31, 2024, suggesting a need for updated information in order to assess the recent trend.
2. Days of Sales Outstanding (DSO):
- Data is unavailable for Days of Sales Outstanding for all the years provided (2020 to 2024), which limits the ability to analyze the company's efficiency in collecting receivables.
3. Number of Days of Payables:
- Similar to DSO, information is missing for the Number of Days of Payables for the years 2020 to 2024, making it impossible to evaluate the company's payment practices and relationships with suppliers.
Overall, the data provided indicates a concerning trend of increasing Days of Inventory on Hand for Booking Holdings Inc, which may suggest a potential inefficiency in managing inventory levels. However, the absence of data for DSO and Number of Days of Payables restricts a comprehensive assessment of the company's overall activity ratios.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 25.55 | 13.33 | 8.99 |
| Total asset turnover | 0.86 | 0.88 | 0.67 | 0.46 | 0.31 |
Looking at Booking Holdings Inc's long-term activity ratios, we can observe significant improvements over the years.
1. Fixed Asset Turnover: This ratio measures how efficiently the company is using its fixed assets to generate revenue. In 2020, the fixed asset turnover was 8.99, indicating that for every dollar of fixed assets, the company generated $8.99 in revenue. This ratio improved to 13.33 in 2021 and further to 25.55 in 2022, showing a strong increase in efficiency. However, data for 2023 and 2024 is not available (denoted by "—"), which may be due to various reasons such as changes in reporting or business operations.
2. Total Asset Turnover: This ratio reflects how well the company is utilizing all its assets to generate sales. In 2020, the total asset turnover was 0.31, meaning that for every dollar of assets, the company generated $0.31 in revenue. This ratio improved consistently to 0.46 in 2021, 0.67 in 2022, and further to 0.88 in 2023, indicating efficient asset utilization over the years. However, there was a slight decrease to 0.86 in 2024, which may warrant further investigation to understand the underlying reasons.
Overall, the trend in both fixed asset turnover and total asset turnover ratios shows an improvement in efficiency and productivity in utilizing assets to generate revenue, with some fluctuations in the later years that may require additional analysis.