Booking Holdings Inc (BKNG)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 21,365,000 | 17,090,000 | 10,958,000 | 6,796,000 | 15,066,000 |
| Total current assets | US$ in thousands | 17,034,000 | 15,798,000 | 13,145,000 | 12,206,000 | 9,833,000 |
| Total current liabilities | US$ in thousands | 13,330,000 | 8,474,000 | 6,246,000 | 3,425,000 | 5,366,000 |
| Working capital turnover | 5.77 | 2.33 | 1.59 | 0.77 | 3.37 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $21,365,000K ÷ ($17,034,000K – $13,330,000K)
= 5.77
Booking Holdings Inc's working capital turnover has experienced fluctuations over the past five years. In 2023, the working capital turnover ratio improved significantly to 5.77, indicating that the company generated $5.77 in revenue for every dollar of working capital invested. This suggests that the company efficiently utilized its working capital to generate sales.
Compared to the previous years, the substantial increase in the working capital turnover ratio in 2023 reflects a marked improvement in the company's efficiency in managing its working capital. In 2022 and 2021, the ratios were 2.33 and 1.59, respectively, showing a moderate level of efficiency in utilizing working capital.
In 2020, the working capital turnover ratio was just 0.77, indicating a relatively lower efficiency in converting working capital into sales during that year. However, in 2019, the ratio was higher at 3.37, signifying improved efficiency compared to 2020 but lower than the latest year, 2023.
Overall, the increasing trend in Booking Holdings Inc's working capital turnover ratio from 2019 to 2023 indicates a positive development in the company's ability to generate revenue relative to its investment in working capital, reflecting enhanced operational efficiency.
Peer comparison
Dec 31, 2023