Booking Holdings Inc (BKNG)
Return on equity (ROE)
| 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 |
| Total stockholders’ equity | US$ in thousands | -2,744,000 | 2,782,000 | 6,178,000 | 4,893,000 | 5,933,000 |
| ROE | — | 109.92% | 18.86% | 1.21% | 82.00% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,289,000K ÷ $-2,744,000K
= —
Booking Holdings Inc's return on equity (ROE) has displayed significant fluctuations over the past five years. In 2019, the company's ROE stood at a robust 82.00%, indicative of strong profitability generated from shareholder equity. This was followed by a notable decrease in 2020, dropping to a mere 1.21%, signaling a substantial decline in the company's ability to generate profits from shareholder investments.
Subsequently, in 2021, Booking Holdings Inc experienced a moderate increase in ROE to 18.86%, indicating a partial recovery in profitability levels. The most recent data point in 2022 demonstrates a remarkable surge in ROE to 109.92%, suggesting a substantial improvement in the company's capacity to create value for shareholders through efficient use of equity.
The fluctuating trend in ROE over the analyzed period suggests varying levels of profitability and efficiency in utilizing shareholder funds. Investors may find the recent upturn in ROE encouraging, reflecting a potential enhancement in the company's financial performance and returns to equity investors. Further analysis of the underlying factors driving these changes in ROE could provide valuable insights into Booking Holdings Inc's financial health and prospects for future growth.
Peer comparison
Dec 31, 2023