Booking Holdings Inc (BKNG)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 12,107,000 | 13,294,000 | 14,602,000 | 14,140,000 | 12,221,000 | 9,021,000 | 11,841,000 | 10,549,000 | 11,127,000 | 11,643,000 | 11,231,000 | 12,151,000 | 10,562,000 | 11,197,000 | 10,404,000 | 6,363,000 | 6,312,000 | 6,466,000 | 5,256,000 | 2,334,000 |
| Short-term investments | US$ in thousands | 576,000 | 624,000 | 640,000 | 359,000 | 175,000 | 116,000 | 25,000 | — | 25,000 | 522,000 | 501,000 | 500,000 | 501,000 | 0 | 0 | 826,000 | 998,000 | 973,000 | 1,553,000 | 1,981,000 |
| Total current liabilities | US$ in thousands | 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 | 5,366,000 | 5,528,000 | 6,349,000 | 5,576,000 |
| Cash ratio | 0.95 | 1.08 | 1.22 | 1.31 | 1.46 | 1.07 | 1.15 | 1.41 | 1.79 | 2.11 | 1.74 | 1.96 | 3.23 | 2.82 | 2.66 | 1.74 | 1.36 | 1.35 | 1.07 | 0.77 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($12,107,000K
+ $576,000K)
÷ $13,330,000K
= 0.95
The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. It is calculated by dividing the total cash and cash equivalents by the total current liabilities.
Based on the information provided in the table, the cash ratio of Booking Holdings Inc has fluctuated over the past eight quarters. In Q4 2023, the cash ratio was 1.03, which indicates that the company had just enough cash and cash equivalents to cover its current liabilities at that point in time.
Comparing Q4 2023 to the previous quarters, we observe a decreasing trend in the cash ratio from Q1 2023 (1.41) to Q4 2023 (1.03). This decreasing trend suggests that Booking Holdings Inc may be becoming less liquid over time.
Furthermore, the highest cash ratio recorded in the past eight quarters was 1.60 in Q4 2022, indicating a peak level of liquidity during that period. Conversely, the lowest cash ratio was 1.03 in Q4 2023, signifying a potential liquidity challenge at the end of 2023.
Overall, while Booking Holdings Inc has maintained a moderate level of liquidity as indicated by its cash ratio above 1 in all quarters, the decreasing trend raises concerns about the company's ability to cover its short-term obligations solely with its cash and cash equivalents. Further analysis and monitoring of liquidity management are recommended to ensure the company's financial health and stability.
Peer comparison
Dec 31, 2023