Booking Holdings Inc (BKNG)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		—	—	—	—	—	0.96	0.74	0.94	1.27	0.96	1.19	1.50	1.48	2.60	4.27	6.00	6.06	—	—	—
DOH	days	—	—	—	—	—	380.09	492.66	386.85	286.83	381.85	306.45	243.95	246.18	140.17	85.40	60.80	60.21	—	—	—

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

The days of inventory on hand (DOH) for Booking Holdings Inc have shown fluctuations over the period from March 31, 2020, to December 31, 2024. The DOH reflects the average number of days it takes for the company to sell its inventory during a specific period.

From December 31, 2020, to June 30, 2021, the DOH increased from 60.21 days to 85.40 days, indicating an increase in the time it takes for Booking Holdings Inc to sell its inventory. This trend continued with a significant jump to 140.17 days by September 30, 2021. Subsequently, the DOH peaked at 492.66 days on June 30, 2023, signaling an extended period for the company to sell off its inventory.

The spike in DOH during this period may suggest issues such as excessive inventory levels relative to sales, obsolete inventory, supply chain disruptions, or changes in consumer demand impacting the sales cycle. It could also indicate potential inefficiencies in inventory management or procurement processes within the company.

However, it is important to note that the DOH decreased to 380.09 days by September 30, 2023, and further to 286.83 days by December 31, 2023, indicating improvements in inventory turnover efficiency. The DOH remained stable at 386.85 days as of March 31, 2024.

Going forward, it will be crucial for Booking Holdings Inc to closely monitor and manage its inventory levels to optimize its working capital, reduce carrying costs, and enhance overall operational efficiency. Continuing to improve inventory management practices and adapting to changing market conditions will be essential for maintaining a healthy balance between inventory levels and sales activity.