Booking Holdings Inc (BKNG)

Activity ratios

Short-term

Turnover ratios

	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	—	—	—
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	4.90	5.99	7.26	6.04	5.77	3.65	2.82	2.77	2.33	4.14	3.16	2.32	1.59	1.07	1.02	0.74	0.77	1.03	1.50	2.83

Booking Holdings Inc's inventory turnover has shown a declining trend from 6.06 in December 2020 to 0.74 in June 2023, indicating a decrease in the efficiency of selling inventory. This could imply potential issues with managing inventory levels or slowing sales.

The company's working capital turnover ratio has displayed fluctuations over the years, with a general increasing trend from 0.77 in December 2020 to 7.26 in June 2024. This suggests that Booking Holdings has been able to generate more revenue relative to its working capital, reflecting improving efficiency in its capital utilization.

Receivables turnover and payables turnover ratios were not provided in the data, indicating a lack of information to assess the efficiency of the company in collecting receivables and managing payables.

Overall, the analysis of Booking Holdings Inc's activity ratios reveals areas of concern such as a declining inventory turnover, although its working capital turnover has improved significantly, indicating better utilization of its resources over time.

Average number of days

		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
Days of inventory on hand (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	—	—	—
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Based on the provided data, let's analyze the activity ratios of Booking Holdings Inc:

1. Days of Inventory on Hand (DOH):
- The DOH measures how efficiently a company manages its inventory. Booking Holdings Inc's DOH has shown fluctuations over the periods, ranging from 60.21 days to 492.66 days.
- A higher DOH indicates that Booking Holdings Inc takes longer to sell its inventory, which could imply either excess inventory or slow sales.
- The significant increase in DOH from June 30, 2022, to June 30, 2023, followed by a decrease by December 31, 2023, suggests fluctuations in inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes for Booking Holdings Inc to collect revenue after making a sale. The data shows that DSO is not available for the periods provided.
- The absence of DSO data limits the assessment of Booking Holdings Inc's collection process efficiency and its impact on cash flow.

3. Number of Days of Payables:
- The number of days of payables measures how long Booking Holdings Inc takes to pay its suppliers. The data indicates that the information is not available for the periods provided.
- Without the payables data, it is challenging to evaluate Booking Holdings Inc's payment terms with suppliers and its working capital management.

In conclusion, the analysis of Booking Holdings Inc's activity ratios highlights fluctuations in inventory management efficiency as indicated by DOH data. However, the absence of DSO and payables data limits a comprehensive assessment of the company's overall operational performance and cash flow management.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	—	26.42	26.00	25.55	18.23	17.07	14.82	13.33	12.09	5.96	7.70	8.99	11.96	15.35	20.16
Total asset turnover	0.86	0.82	0.78	0.79	0.88	0.80	0.73	0.72	0.67	0.73	0.60	0.56	0.46	0.39	0.30	0.24	0.31	0.40	0.54	0.81

The Fixed Asset Turnover ratio for Booking Holdings Inc has fluctuated but generally improved over the years from 20.16 in March 2020 to 26.42 in June 2023. This indicates that the company has been able to generate more revenue relative to its investment in fixed assets like property, plant, and equipment. However, it is important to note the incomplete data for the period after June 30, 2023.

On the other hand, the Total Asset Turnover ratio started at 0.81 in March 2020, decreased significantly in December 2020 to 0.31, and then gradually increased to 0.78 by June 30, 2024. This ratio signifies the company's efficiency in generating sales revenue relative to its total assets. The upward trend since December 2020 indicates improved asset utilization over time, which is a positive sign for the company's operational efficiency.

Overall, the trend in both the Fixed Asset Turnover and Total Asset Turnover ratios suggests that Booking Holdings Inc has been managing its assets effectively to generate revenue, with improvements seen over the years. However, further analysis would be needed to understand the factors driving these changes and their implications for the company's long-term financial performance.