Booking Holdings Inc (BKNG)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,835,000 | 6,571,000 | 6,051,000 | 5,378,000 | 5,102,000 | 4,605,000 | 4,037,000 | 2,981,000 | 2,496,000 | 1,495,000 | -205,000 | -633,000 | -631,000 | 694,000 | 2,749,000 | 4,480,000 | 5,345,000 | 5,316,000 | 5,193,000 | 5,167,000 |
| Long-term debt | US$ in thousands | 12,223,000 | 11,856,000 | 13,198,000 | 11,272,000 | 11,985,000 | 7,950,000 | 8,190,000 | 8,435,000 | 8,937,000 | 9,876,000 | 9,986,000 | 9,930,000 | 11,029,000 | 10,829,000 | 10,633,000 | 7,553,000 | 7,640,000 | 7,512,000 | 7,686,000 | 7,619,000 |
| Total stockholders’ equity | US$ in thousands | -2,744,000 | -625,000 | -665,000 | 1,074,000 | 2,782,000 | 3,670,000 | 4,002,000 | 4,373,000 | 6,178,000 | 5,545,000 | 4,799,000 | 4,764,000 | 4,893,000 | 4,913,000 | 3,999,000 | 3,831,000 | 5,933,000 | 5,951,000 | 5,307,000 | 6,915,000 |
| Return on total capital | 61.56% | 58.51% | 48.28% | 43.56% | 34.55% | 39.63% | 33.11% | 23.27% | 16.51% | 9.69% | -1.39% | -4.31% | -3.96% | 4.41% | 18.79% | 39.35% | 39.38% | 39.49% | 39.97% | 35.55% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,835,000K ÷ ($12,223,000K + $-2,744,000K)
= 61.56%
Booking Holdings Inc's return on total capital has shown a consistent upward trend over the past eight quarters, increasing from 21.37% in Q1 2022 to 51.05% in Q4 2023. This indicates that the company has been effectively generating returns from the total capital employed in its operations. The steady improvement in this ratio suggests that Booking Holdings Inc's management has been successful in optimizing the use of its assets and capital resources to generate higher profits.
The significant increase in return on total capital from Q1 2022 to Q4 2023 by almost 30 percentage points reflects the company's strong operational performance and efficiency in utilizing its capital base. This improvement indicates a positive trend in the overall profitability and productivity of Booking Holdings Inc.
Overall, the rising trend in return on total capital demonstrates the company's ability to generate value for its stakeholders by efficiently utilizing its capital resources to generate profits. It also indicates a positive outlook for the company's financial performance and potential for continued growth in the future.
Peer comparison
Dec 31, 2023