Booking Holdings Inc (BKNG)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.31 | 1.23 | 1.17 | 1.22 | 1.28 | 1.44 | 1.55 | 1.59 | 1.86 | 1.45 | 1.45 | 1.72 | 2.10 | 2.48 | 2.05 | 2.18 | 3.56 | 3.17 | 2.93 | 2.24 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $20,491,000K ÷ $15,647,000K
= 1.31
The current ratio of Booking Holdings Inc has exhibited some fluctuations over the past few years, ranging from a high of 3.56 in December 2020 to a low of 1.17 in June 2024. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities to meet its short-term obligations.
Looking at the trend, we can observe that the ratio peaked in December 2020 and has since been on a downward trajectory, with some slight variations in between. The ratio saw a significant drop in the second half of 2021 before slightly improving in early 2022, only to decline again in the following periods.
The current ratio falling below 2 in recent periods may suggest a potential liquidity risk for the company, as it indicates a lower ability to cover its short-term debts with its current assets. Management may need to closely monitor this trend and consider strategies to improve liquidity, such as optimizing working capital or refinancing debt, to ensure the company's financial health.
Peer comparison
Dec 31, 2024