Booking Holdings Inc (BKNG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 99.98% | 96.45% | 94.53% | 90.55% |
| Operating profit margin | 31.83% | 27.31% | 29.85% | 16.54% | 31.40% |
| Pretax margin | 30.72% | 25.65% | 22.95% | 13.37% | 8.34% |
| Net profit margin | 24.78% | 20.07% | 17.89% | 10.63% | 0.87% |
Booking Holdings Inc has shown a consistent improvement in its profitability ratios over the years. The gross profit margin has steadily increased from 90.55% in December 2020 to a perfect 100.00% by December 2024, indicating the company's ability to efficiently manage its cost of goods sold.
The operating profit margin, after a slight dip in 2021, recovered and improved to 31.83% by December 2024. This suggests that Booking Holdings has been successful in controlling its operating expenses while generating revenue.
The pretax margin has shown a significant upward trend, starting at 8.34% in 2020 and reaching 30.72% by the end of 2024. This indicates that the company has been able to increase its income before accounting for taxes, reflecting improved overall profitability.
Lastly, the net profit margin has also experienced a substantial improvement, rising from 0.87% in 2020 to 24.78% by December 2024. This metric reflects the company's ability to generate net income effectively after accounting for all expenses, including taxes. Overall, Booking Holdings has demonstrated a strong performance in terms of profitability, showcasing consistent growth and efficiency in its operations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 27.27% | 23.97% | 20.12% | 7.66% | 9.76% |
| Return on assets (ROA) | 21.23% | 17.62% | 12.06% | 4.93% | 0.27% |
| Return on total capital | — | — | 155.07% | 29.12% | 18.86% |
| Return on equity (ROE) | — | — | 109.92% | 18.86% | 1.21% |
Booking Holdings Inc's profitability ratios show a positive trend over the years.
1. Operating Return on Assets (Operating ROA): The Operating ROA decreased from 9.76% in 2020 to 7.66% in 2021 but then showed a significant improvement, reaching 27.27% in 2024. This indicates that the company improved its operational efficiency in generating profits from its assets over time.
2. Return on Assets (ROA): The ROA exhibited a similar pattern, starting at 0.27% in 2020 and steadily increasing to 21.23% in 2024. This suggests that Booking Holdings Inc became more effective in utilizing its assets to generate profits for its shareholders.
3. Return on Total Capital: The Return on Total Capital displayed a substantial increase from 18.86% in 2020 to 155.07% in 2022. However, data is missing for 2023 and 2024, preventing a complete analysis of this ratio. This could indicate significant profitability achieved with the total capital invested in the business.
4. Return on Equity (ROE): The ROE also followed a positive trajectory, rising from 1.21% in 2020 to 109.92% in 2022. Similar to the Return on Total Capital, data is not available for 2023 and 2024. This ratio illustrates the company's ability to generate returns for its shareholders' equity.
Overall, Booking Holdings Inc's profitability ratios demonstrate an improvement in efficiency and effectiveness in utilizing assets and capital to generate profits and returns for its shareholders.