Booking Holdings Inc (BKNG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 24,342,000 | 25,361,000 | 23,641,000 | 21,874,000 | 21,402,000 |
| Total stockholders’ equity | US$ in thousands | -2,744,000 | 2,782,000 | 6,178,000 | 4,893,000 | 5,933,000 |
| Financial leverage ratio | — | 9.12 | 3.83 | 4.47 | 3.61 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,342,000K ÷ $-2,744,000K
= —
The financial leverage ratio for Booking Holdings Inc has shown variability over the past five years. In 2019, the ratio stood at 3.61, indicating a moderate level of financial leverage. This ratio increased in 2020 to 4.47, suggesting an increase in the company's reliance on debt to finance its operations. The ratio then decreased in 2021 to 3.83, indicating a reduction in financial leverage compared to the previous year.
However, in 2022, there was a significant spike in the financial leverage ratio to 9.12, signaling a substantial increase in the company's debt burden relative to its equity. The absence of a specific financial leverage ratio for 2023 prevents a direct comparison for the latest period.
The fluctuation in Booking Holdings Inc's financial leverage ratio over the years highlights potential shifts in the company's capital structure and risk exposure. Investors and stakeholders may need to further investigate the reasons behind these changes to assess the company's financial health and risk profile accurately.
Peer comparison
Dec 31, 2023