Booking Holdings Inc (BKNG)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 1.03 | 0.95 | 0.90 | 0.95 | 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 | 3.75 | 2.66 | 1.74 |
| Cash ratio | 1.03 | 0.95 | 0.90 | 0.95 | 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 | 3.75 | 2.66 | 1.74 |
Booking Holdings Inc's liquidity ratios show the company's ability to meet its short-term financial obligations. The current ratio, which indicates the company's ability to cover its current liabilities with its current assets, has experienced fluctuations over the years. It increased from 2.24 in March 2020 to a peak of 3.56 in December 2020 but has since declined to 1.31 by December 2024.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also displays a similar trend of fluctuation. It reached a high of 3.75 in September 2020 but decreased to 1.03 by December 2024, indicating a potential decrease in the company's ability to meet its short-term obligations without relying on inventory.
The cash ratio, which only considers the most liquid assets like cash and equivalents, follows a similar pattern to the quick ratio. It peaked at 3.75 in September 2020 and decreased to 1.03 by December 2024, highlighting a potential decrease in the company's ability to cover current liabilities using only its most liquid assets.
Overall, the declining trend in all three liquidity ratios, especially towards the end of the period, may indicate potential liquidity challenges for Booking Holdings Inc. It is essential for investors and stakeholders to monitor these ratios closely to assess the company's ability to manage its short-term financial commitments effectively.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 380.09 | 492.66 | 386.85 | 286.83 | 381.85 | 306.45 | 243.95 | 246.18 | 140.17 | 85.40 | 60.80 | 60.21 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle of Booking Holdings Inc has fluctuated significantly over the past few years. The company effectively managed its operating cash flow by maintaining a cash conversion cycle of 0 days for several quarters, indicating efficient management of cash inflows and outflows.
However, starting from December 31, 2020, the cash conversion cycle started to increase, reaching a peak of 492.66 days on June 30, 2023. This significant increase suggests that the company might be facing challenges in converting its investments in inventory and accounts receivable back into cash. A prolonged cash conversion cycle can strain liquidity and negatively impact the company's working capital management.
It is worth noting that the cash conversion cycle decreased back to 0 days by December 31, 2023, and remained at 0 days throughout the entire year of 2024. This improvement could signify that Booking Holdings Inc successfully implemented strategies to enhance its cash flow efficiency and improve its working capital management.
Overall, a fluctuating cash conversion cycle for Booking Holdings Inc indicates varying levels of operational efficiency and liquidity management over the analyzed period. Continued monitoring and adjustment of working capital practices may be necessary to ensure optimal cash flow performance in the future.