Booking Holdings Inc (BKNG)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	509,000	684,000	663,000	681,000	665,000	653,000	629,000	618,000	607,000	585,000	586,000	591,000	599,000	1,026,000	1,419,000	1,717,000	2,043,000	4,102,000	4,129,000	4,296,000
Inventory	US$ in thousands	—	—	—	—	—	680,000	849,000	655,000	477,000	612,000	492,000	395,000	404,000	394,000	332,000	286,000	337,000	—	—	—
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	—	—	—

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $509,000K ÷ $—K
= —

Booking Holdings Inc's inventory turnover ratio has shown a declining trend over the periods reported. The inventory turnover ratio, which measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced within a specific period, decreased from 6.06 in December 31, 2020, to 0.74 in June 30, 2023.

A high inventory turnover ratio is generally preferred as it indicates that inventory is being sold quickly, reducing the risk of obsolescence and minimizing holding costs. Conversely, a low inventory turnover ratio may suggest overstocking, slow-moving inventory, or challenges in selling products efficiently.

The significant decline in Booking Holdings Inc's inventory turnover ratio over the periods reported may be a cause for concern as it potentially signifies inefficiencies in managing inventory levels or challenges in selling products. It is essential for the company to address these issues to improve operational efficiency and overall financial performance.