Booking Holdings Inc (BKNG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | — | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | — | 9.12 | 3.83 | 4.47 |
The solvency ratios for Booking Holdings Inc based on the provided data show a consistently strong financial position in terms of debt management:
1. Debt-to-assets ratio: The company has maintained a Debt-to-assets ratio of 0.00 across all the years analyzed (2020-2024). This ratio indicates that the company has no debt obligations in relation to its total assets, highlighting a low financial risk associated with its capital structure.
2. Debt-to-capital ratio: Booking Holdings Inc also shows a Debt-to-capital ratio of 0.00 for the years 2020 to 2022. However, data is unavailable for the years 2023 and 2024. A Debt-to-capital ratio of 0.00 signifies that the company has not relied on debt financing to fund its operations, demonstrating a conservative financial leverage approach.
3. Debt-to-equity ratio: Similar to the Debt-to-capital ratio, the Debt-to-equity ratio for Booking Holdings Inc remains at 0.00 for the years 2020 to 2022. No data is provided for the years 2023 and 2024. A Debt-to-equity ratio of 0.00 indicates that the company has no debt relative to its equity, showcasing minimal financial risk and a strong equity base.
4. Financial leverage ratio: The Financial leverage ratio for Booking Holdings Inc has shown variability, with values of 4.47 for 2020, 3.83 for 2021, and a significant increase to 9.12 for 2022. However, data is not available for the years 2023 and 2024. A high Financial leverage ratio can sometimes indicate a higher level of financial risk, but in this case, other solvency ratios suggest that the company's overall debt management is prudent.
Overall, based on the solvency ratios analyzed, Booking Holdings Inc appears to have maintained a sound and conservative approach to managing its debt obligations, with a strong focus on minimizing financial risk and maintaining a healthy capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.63 | 7.11 | 11.03 | 5.39 | 2.59 |
The interest coverage ratio of Booking Holdings Inc has shown a positive trend over the past five years, starting at 2.59 in December 31, 2020, and steadily increasing to 5.39 in December 31, 2021, 11.03 in December 31, 2022, 7.11 in December 31, 2023, and then slightly decreasing to 4.63 in December 31, 2024.
This indicates that the company's ability to meet its interest obligations with its operating income has improved significantly over the years, peaking in 2022. However, the slight decline in 2024 suggests a potential need for further monitoring to ensure sustainable interest coverage. Overall, the trend reflects stronger financial health and stability in managing its interest payments.