Booking Holdings Inc (BKNG)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	12,223,000	11,985,000	8,937,000	11,029,000	7,640,000
Total stockholders’ equity	US$ in thousands	-2,744,000	2,782,000	6,178,000	4,893,000	5,933,000
Debt-to-capital ratio		1.29	0.81	0.59	0.69	0.56

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $12,223,000K ÷ ($12,223,000K + $-2,744,000K)
= 1.29

The debt-to-capital ratio of Booking Holdings Inc has displayed fluctuations over the past five years, with values ranging from 0.59 in 2019 to 1.24 in 2023. The ratio indicates the proportion of the company's capital that is funded by debt, with higher values suggesting a higher reliance on debt financing.

The gradual increase in the debt-to-capital ratio from 0.59 in 2019 to 1.24 in 2023 may raise concerns about the company's increasing debt levels relative to its total capital. It is important to note that a higher debt-to-capital ratio can indicate higher financial risk, as it implies greater debt obligations that need to be serviced.

Investors and creditors closely monitor changes in the debt-to-capital ratio as a key indicator of the company's financial health and leverage position. Booking Holdings Inc's management may need to assess the balance between debt and equity financing to maintain a sustainable capital structure and manage financial risks effectively.