Booking Holdings Inc (BKNG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.24% | 42.40% | 34.58% | 6.22% | 76.68% |
| Operating profit margin | 27.31% | 29.85% | 22.78% | -9.28% | 35.48% |
| Pretax margin | 25.65% | 22.95% | 13.37% | 8.34% | 39.55% |
| Net profit margin | 20.07% | 17.89% | 10.63% | 0.87% | 32.29% |
Booking Holdings Inc has demonstrated consistency in maintaining a high gross profit margin of 100% over the past five years, indicating efficient cost management and pricing strategies in generating revenue.
The operating profit margin has fluctuated slightly but remained relatively healthy, with a decline in 2021 followed by an improvement in 2022 and 2023. This suggests that the company has been effective in controlling operating expenses and maximizing profitability from its core business operations.
The pretax margin has shown variability, with a significant decrease in 2021 compared to the prior years. However, there has been a recovery in profitability in 2022 and 2023, indicating better income generation before accounting for taxes.
The net profit margin has also fluctuated, with a substantial drop in 2021, likely due to various factors impacting net income. However, the company managed to rebound in 2022 and 2023, showcasing its ability to generate profit after accounting for all expenses and taxes.
Overall, Booking Holdings Inc has maintained relatively strong profitability ratios, with improvements in operating profit margin, pretax margin, and net profit margin in recent years, reflecting effective cost control measures and enhanced revenue generation.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 23.97% | 20.12% | 10.56% | -2.88% | 24.97% |
| Return on assets (ROA) | 17.62% | 12.06% | 4.93% | 0.27% | 22.73% |
| Return on total capital | 61.56% | 34.55% | 16.51% | -3.96% | 39.38% |
| Return on equity (ROE) | — | 109.92% | 18.86% | 1.21% | 82.00% |
Booking Holdings Inc has shown a positive trend in profitability ratios over the past five years. Operating return on assets (Operating ROA) has increased steadily from 2019 to 2023, indicating the company's ability to generate operating income relative to its total assets has improved significantly. Return on assets (ROA) has also shown a positive trend, although it dipped in 2020 before rebounding in subsequent years, reflecting the company's efficiency in generating profits from its assets.
Return on total capital has exhibited a similar upward trajectory, indicating a strong ability to generate returns for both equity and debt holders over the years. Return on equity (ROE) displayed significant fluctuations, reaching its peak in 2022 before decreasing in the following years. This fluctuation may indicate varying levels of leverage and profitability across the years.
Overall, Booking Holdings Inc's profitability ratios suggest a generally positive performance, with improvements in operating efficiency and returns on capital over the past five years. Further analysis of the company's financial statements and business strategies can provide greater insights into the factors driving these results and opportunities for further enhancement.