Booking Holdings Inc (BKNG)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,997,000 | 6,378,000 | 4,314,000 | 1,799,000 | 923,000 |
| Interest expense | US$ in thousands | 1,295,000 | 897,000 | 391,000 | 334,000 | 356,000 |
| Interest coverage | 4.63 | 7.11 | 11.03 | 5.39 | 2.59 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $5,997,000K ÷ $1,295,000K
= 4.63
Booking Holdings Inc's interest coverage ratio has exhibited a positive trend over the past five years, indicating improving ability to meet its interest obligations from operating income. The ratio increased from 2.59 in December 31, 2020, to 5.39 in December 31, 2021, and further improved to 11.03 in December 31, 2022, showcasing significant enhancement in the company's ability to cover interest expenses. However, in the subsequent years, the interest coverage ratio experienced some fluctuation, declining to 7.11 in December 31, 2023, before dropping further to 4.63 in December 31, 2024. While the ratio remained above 1 in all years, indicating that the company generated sufficient operating income to cover interest payments, the recent decreases suggest a potential weakening in the firm's ability to service its debt in the coming periods. Booking Holdings Inc should closely monitor its interest coverage ratio to ensure sustainable financial health and meet its debt obligations effectively.
Peer comparison
Dec 31, 2024