Booking Holdings Inc (BKNG)

Working capital 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
Revenue (ttm)	US$ in thousands	23,739,000	23,052,000	22,399,000	22,002,000	21,365,000	20,630,000	19,341,000	18,173,000	17,090,000	16,022,000	14,646,000	12,512,000	10,958,000	9,215,000	7,179,000	5,649,000	6,796,000	8,897,000	11,297,000	14,517,000
Total current assets	US$ in thousands	20,491,000	20,529,000	21,293,000	20,476,000	17,034,000	18,479,000	19,349,000	17,632,000	15,798,000	12,410,000	14,924,000	12,875,000	13,145,000	14,352,000	13,789,000	14,108,000	12,206,000	12,583,000	11,453,000	9,260,000
Total current liabilities	US$ in thousands	15,647,000	16,678,000	18,206,000	16,832,000	13,330,000	12,832,000	12,481,000	11,070,000	8,474,000	8,543,000	10,282,000	7,478,000	6,246,000	5,779,000	6,724,000	6,468,000	3,425,000	3,968,000	3,909,000	4,136,000
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

December 31, 2024 calculation

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

The working capital turnover of Booking Holdings Inc has fluctuated over the years, indicating varying efficiency in managing its working capital. The ratio measures how effectively the company is utilizing its working capital to generate sales revenue.

The trend shows that the working capital turnover decreased significantly from March 2020 to December 2020, indicating a potential inefficiency in utilizing working capital during that period. However, from March 2021 onwards, there is a gradual improvement in the ratio, reaching a peak of 7.26 by June 30, 2024.

A high working capital turnover ratio suggests that the company is efficiently managing its working capital to generate sales. It may indicate effective inventory management, credit policies, and collection processes. On the other hand, a low ratio could indicate inefficient use of working capital or potential liquidity issues.

Overall, the increasing trend in the working capital turnover ratio from 2021 to 2024 is a positive sign of improved efficiency in managing working capital to support sales growth. To gain a holistic view, it is essential to analyze other financial ratios and factors influencing the company's performance.