Booking Holdings Inc (BKNG)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 27,708,000 | 27,978,000 | 28,541,000 | 27,728,000 | 24,342,000 | 25,635,000 | 26,558,000 | 25,206,000 | 25,361,000 | 22,063,000 | 24,493,000 | 22,384,000 | 23,641,000 | 23,341,000 | 23,881,000 | 23,655,000 | 21,874,000 | 22,145,000 | 20,912,000 | 17,862,000 |
| Total stockholders’ equity | US$ in thousands | -4,020,000 | -3,653,000 | -4,276,000 | -4,052,000 | -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 | 4,804,000 | 4,764,000 | 4,893,000 | 4,913,000 | 3,999,000 | 3,835,000 |
| Financial leverage ratio | — | — | — | — | — | — | — | 23.47 | 9.12 | 6.01 | 6.12 | 5.12 | 3.83 | 4.21 | 4.97 | 4.97 | 4.47 | 4.51 | 5.23 | 4.66 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $27,708,000K ÷ $-4,020,000K
= —
Booking Holdings Inc's financial leverage ratio has fluctuated over the period from March 31, 2020, to June 30, 2022, indicating changes in the company's debt levels relative to its equity. The ratio started at 4.66 in March 31, 2020, increased to 6.12 by June 30, 2022, and then decreased to 9.12 by December 31, 2022. This significant increase followed by a decrease suggests potential shifts in the company's capital structure and financial risk.
A financial leverage ratio above 5 typically indicates higher financial leverage, implying that the company has a significant amount of debt compared to equity. This can amplify returns on equity when the company performs well but also poses higher risks during economic downturns or in case of financial distress.
By December 31, 2022, the ratio had spiked to 9.12, which suggests a substantial increase in debt relative to equity, potentially due to higher borrowing or investment activities. Such a high financial leverage ratio may raise concerns about the company's ability to meet its debt obligations and could indicate increased financial risk.
The financial leverage ratio provides insights into how Booking Holdings Inc is funding its operations and growth. It is crucial for investors and stakeholders to monitor this ratio over time to assess the company's financial health and risk profile. The sudden increase in the ratio by December 31, 2022, and the subsequent lack of data from March 31, 2023, to December 31, 2024, may require further investigation to understand the company's financial position and strategy.
Peer comparison
Dec 31, 2024