Booking Holdings Inc (BKNG)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	8,275,000	6,823,000	7,052,000	7,037,000	6,378,000	7,356,000	6,231,000	5,592,000	4,314,000	3,608,000	2,378,000	1,198,000	1,799,000	1,251,000	1,137,000	1,402,000	924,000	1,753,000	3,252,000	4,194,000
Interest expense (ttm)	US$ in thousands	1,295,000	996,000	945,000	922,000	897,000	834,000	682,000	517,000	391,000	321,000	299,000	304,000	334,000	357,000	375,000	390,000	356,000	320,000	292,000	264,000
Interest coverage		6.39	6.85	7.46	7.63	7.11	8.82	9.14	10.82	11.03	11.24	7.95	3.94	5.39	3.50	3.03	3.59	2.60	5.48	11.14	15.89

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,275,000K ÷ $1,295,000K
= 6.39

The interest coverage ratio of Booking Holdings Inc has exhibited fluctuations over the past few years. The ratio measures the company's ability to meet its interest payments on outstanding debt obligations.

As of March 31, 2020, Booking Holdings Inc had an interest coverage ratio of 15.89, indicating that the company generated operating profits nearly 16 times more than its interest expenses. This high ratio suggests a robust ability to cover interest costs.

However, the interest coverage ratio declined to 6.39 as of December 31, 2024. Although still above 1, signaling that the company's earnings remain sufficient to cover interest payments, the decreasing trend raises concerns about the company's declining ability to service its debt.

Overall, the fluctuation in the interest coverage ratio of Booking Holdings Inc highlights the importance of monitoring the company's profitability and debt management practices to ensure its long-term financial health and sustainability.