Booking Holdings Inc (BKNG)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.31 | 1.28 | 1.86 | 2.10 | 3.56 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $20,491,000K ÷ $15,647,000K
= 1.31
Booking Holdings Inc's current ratio has been gradually decreasing over the years. It stood at a healthy level of 3.56 as of December 31, 2020, indicating the company had $3.56 in current assets for every $1 in current liabilities. However, this ratio declined to 2.10 by December 31, 2021, and further to 1.86 by December 31, 2022.
The decreasing trend continued as the current ratio dropped to 1.28 by December 31, 2023, and then slightly improved to 1.31 by December 31, 2024. This suggests that the company may be facing challenges in managing its short-term obligations with its current assets.
A current ratio below 1 would typically indicate that a company may have difficulties meeting its short-term liabilities, while a ratio above 1 indicates it is capable of covering its short-term debts. Booking Holdings Inc's declining current ratio raises concerns about its liquidity and ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024