Booking Holdings Inc (BKNG)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 12,107,000 | 12,221,000 | 11,127,000 | 10,562,000 | 6,312,000 |
| Short-term investments | US$ in thousands | 576,000 | 175,000 | 25,000 | 501,000 | 998,000 |
| Receivables | US$ in thousands | 3,063,000 | 2,113,000 | 1,309,000 | 376,000 | 1,261,000 |
| Total current liabilities | US$ in thousands | 13,330,000 | 8,474,000 | 6,246,000 | 3,425,000 | 5,366,000 |
| Quick ratio | 1.18 | 1.71 | 2.00 | 3.34 | 1.60 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($12,107,000K
+ $576,000K
+ $3,063,000K)
÷ $13,330,000K
= 1.18
The quick ratio of Booking Holdings Inc has shown a fluctuating trend over the past five years. In 2023, the quick ratio stands at 1.28, indicating that for every $1 of current liabilities, the company has $1.28 of liquid assets available to cover those obligations. This represents a decrease from the previous year's ratio of 1.86, suggesting a potentially decreased liquidity position.
Comparing the current ratio to earlier years, we observe a significant decline from 2020, where the quick ratio was at its highest point of 3.56. This indicates a substantial reduction in the company's ability to meet its short-term obligations with its quick assets only. The quick ratio of 2.10 in 2021 also demonstrates a stronger liquidity position compared to the most recent year.
Overall, the declining trend in the quick ratio over the past two years may raise concerns about Booking Holdings Inc's liquidity position and its ability to quickly cover its short-term liabilities with its highly liquid assets. Investors and stakeholders may need to further investigate factors contributing to this trend to assess the company's financial health and risk management strategies.
Peer comparison
Dec 31, 2023