Booking Holdings Inc (BKNG)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,882,000 | 4,289,000 | 3,058,000 | 1,165,000 | 59,000 |
| Total assets | US$ in thousands | 27,708,000 | 24,342,000 | 25,361,000 | 23,641,000 | 21,874,000 |
| ROA | 21.23% | 17.62% | 12.06% | 4.93% | 0.27% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $5,882,000K ÷ $27,708,000K
= 21.23%
Booking Holdings Inc's Return on Assets (ROA) has shown a significant upward trend over the years, indicating an improvement in the company's efficiency in generating profit from its assets. The ROA increased from 0.27% as of December 31, 2020, to 21.23% as of December 31, 2024. This suggests that the company has been able to utilize its assets more effectively to generate earnings for its shareholders. A rising ROA is generally seen as a positive indicator of management's ability to generate profits relative to the size of the company's asset base. It shows that Booking Holdings Inc is becoming more efficient in deploying its assets to generate profits over time, which is a favorable signal for investors and stakeholders.
Peer comparison
Dec 31, 2024