Booking Holdings Inc (BKNG)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.83 | 1.82 | 1.58 | 1.27 |
| Quick ratio | 1.18 | 1.34 | 1.44 | 1.48 | 1.71 | 1.33 | 1.36 | 1.62 | 2.00 | 2.32 | 1.88 | 2.02 | 3.34 | 3.00 | 2.76 | 1.68 | 1.60 | 1.67 | 1.38 | 1.04 |
| 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 |
Booking Holdings Inc's liquidity ratios show a consistent trend over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has gradually decreased from 1.86 in Q4 2022 to 1.28 in Q4 2023. This indicates a slight deterioration in short-term liquidity.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, follows the same trend as the current ratio. The company's ability to cover its short-term obligations without relying on inventory has decreased over the same period.
The cash ratio, which specifically measures the company's ability to cover current liabilities with its most liquid assets, also shows a declining trend from 1.60 in Q4 2022 to 1.03 in Q4 2023. This indicates a decrease in the proportion of readily available cash to meet short-term obligations.
Overall, Booking Holdings Inc's liquidity ratios suggest a gradual decline in short-term liquidity over the past eight quarters. This may raise concerns about the company's ability to meet its immediate financial obligations without relying on inventory or other less liquid assets. Further analysis and monitoring of liquidity management practices may be warranted to address these declining trends.
See also:
Additional liquidity measure
| 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 conversion cycle | days | -78.76 | -17.62 | 8.46 | -13.30 | -30.15 | -9.52 | -19.45 | -5.81 | -16.58 | -10.45 | 7.11 | 7.07 | -2.60 | -38.26 | -31.83 | -69.72 | -98.15 | -92.13 | -91.99 | -68.31 |
To assess Booking Holdings Inc's cash conversion cycle, we analyze the trend of its performance over the past eight quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows.
Booking Holdings Inc's cash conversion cycle has shown fluctuations over the periods examined. In the most recent quarter, Q4 2023, the company's cash conversion cycle was 55.57 days, indicating that it took, on average, about 55 days to convert investments into cash. This figure was lower than in the previous quarter, Q3 2023, where the cycle was 60.99 days.
Looking back further, we observe a general trend of fluctuation in the cash conversion cycle. In Q1 2023, the cycle decreased significantly to 41.13 days before increasing again in subsequent quarters. Comparing to the same quarter in the previous year (Q4 2022), the company has managed to improve its cash conversion efficiency as the cycle has decreased by around 8 days.
Throughout the analysis period, Booking Holdings Inc's cash conversion cycle has varied between 41.13 days and 60.99 days. While shorter cash conversion cycles are generally favorable as they indicate a quicker turnaround of investments into cash, fluctuations in the cycle require further investigation to understand the underlying factors impacting the company's operating efficiency and liquidity management.