Booking Holdings Inc (BKNG)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	4,289,000	3,058,000	1,165,000	59,000	4,865,000
Revenue	US$ in thousands	21,365,000	17,090,000	10,958,000	6,796,000	15,066,000
Net profit margin		20.07%	17.89%	10.63%	0.87%	32.29%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $4,289,000K ÷ $21,365,000K
= 20.07%

The net profit margin of Booking Holdings Inc has shown fluctuations over the past five years. The trend indicates an improvement in profitability from 2019 to 2020, followed by a substantial decrease in 2021, and then a significant increase in 2022 and 2023.

In 2019, the net profit margin was relatively high at 32.29%, indicating a strong profitability position. However, there was a notable decline in 2020, where the net profit margin dropped to 0.87%, reflecting a significant decrease in profitability, possibly due to external factors such as the impact of the COVID-19 pandemic on the travel industry.

The company managed to significantly improve its profitability in 2021, with the net profit margin increasing to 10.63%. This improvement may have been driven by cost-cutting measures and operational efficiencies implemented in response to the challenging environment.

The positive trend continued in the subsequent years, with the net profit margin further increasing to 17.89% in 2022 and 20.07% in 2023. These improvements suggest that Booking Holdings Inc has been successful in enhancing its profitability and operational performance, possibly through strategic initiatives, revenue growth, and effective cost management.

Overall, the varying net profit margin of Booking Holdings Inc over the years reflects the company's ability to adapt to changing economic conditions, implement effective strategies to improve profitability, and navigate challenges within the competitive travel industry.