Booking Holdings Inc (BKNG)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	23,739,000	21,365,000	17,090,000	10,958,000	6,796,000
Total current assets	US$ in thousands	20,491,000	17,034,000	15,798,000	13,145,000	12,206,000
Total current liabilities	US$ in thousands	15,647,000	13,330,000	8,474,000	6,246,000	3,425,000
Working capital turnover		4.90	5.77	2.33	1.59	0.77

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $23,739,000K ÷ ($20,491,000K – $15,647,000K)
= 4.90

Based on the provided data for Booking Holdings Inc's working capital turnover, we observe a positive trend over the past five years. The working capital turnover ratio has increased consistently from 0.77 in December 31, 2020, to 4.90 in December 31, 2024.

This improvement indicates that Booking Holdings has been able to generate more revenue from its working capital, reflecting efficient management of its current assets and liabilities. A higher working capital turnover ratio signifies that the company is effectively using its working capital to support its operations and generate sales.

The significant increase in the ratio from 2020 to 2024, reaching a peak of 5.77, suggests that Booking Holdings has optimized its working capital management strategies over the years, resulting in enhanced liquidity and operational efficiency.

Overall, the rising trend in Booking Holdings Inc's working capital turnover ratio reflects the company's ability to efficiently utilize its working capital to drive business activities and generate revenue.