Booking Holdings Inc (BKNG)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 5,835,000 | 5,102,000 | 2,496,000 | -631,000 | 5,345,000 |
| Total assets | US$ in thousands | 24,342,000 | 25,361,000 | 23,641,000 | 21,874,000 | 21,402,000 |
| Operating ROA | 23.97% | 20.12% | 10.56% | -2.88% | 24.97% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $5,835,000K ÷ $24,342,000K
= 23.97%
Booking Holdings Inc's operating return on assets (operating ROA) has experienced fluctuations over the past five years. In 2019, the operating ROA was exceptionally high at 24.97%, indicating that the company generated significant operating income relative to its total assets. However, in 2020, the operating ROA dropped to a mere 2.65%, signaling a substantial decline in operational efficiency and profitability.
The trend reversed in 2021, with the operating ROA increasing to 10.61%, suggesting an improvement in utilizing assets to generate operating income. This positive momentum continued into 2022, with the operating ROA climbing further to 19.33%, indicating enhanced operational performance and profitability.
By the end of 2023, Booking Holdings Inc's operating ROA reached 23.99%, surpassing the levels seen in the previous years. This suggests that the company has been able to effectively utilize its assets to generate operating income, reflecting improved operational efficiency and profitability.
Overall, the fluctuation in Booking Holdings Inc's operating ROA over the past five years highlights the company's ability to adapt to changing market conditions and optimize asset utilization to enhance profitability.
Peer comparison
Dec 31, 2023