Booking Holdings Inc (BKNG)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.50 | 0.46 | 0.50 | 0.45 | 0.47 | 0.36 | 0.33 | 0.38 | 0.38 | 0.42 | 0.42 | 0.42 | 0.50 | 0.49 | 0.51 | 0.42 | 0.36 | 0.35 | 0.36 | 0.34 |
| Debt-to-capital ratio | 1.29 | 1.06 | 1.05 | 0.91 | 0.81 | 0.68 | 0.67 | 0.66 | 0.59 | 0.64 | 0.68 | 0.68 | 0.69 | 0.69 | 0.73 | 0.66 | 0.56 | 0.56 | 0.59 | 0.52 |
| Debt-to-equity ratio | — | — | — | 10.50 | 4.31 | 2.17 | 2.05 | 1.93 | 1.45 | 1.78 | 2.08 | 2.08 | 2.25 | 2.20 | 2.66 | 1.97 | 1.29 | 1.26 | 1.45 | 1.10 |
| Financial leverage ratio | — | — | — | 23.47 | 9.12 | 6.01 | 6.12 | 5.12 | 3.83 | 4.21 | 4.98 | 4.97 | 4.47 | 4.51 | 5.23 | 4.66 | 3.61 | 3.60 | 4.05 | 3.23 |
The solvency ratios of Booking Holdings Inc indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been trending upwards over the periods analyzed, indicating that a larger proportion of the company's assets are financed through debt. However, the ratio remains relatively stable around 0.5 to 0.6, suggesting a moderate level of financial leverage.
The debt-to-capital ratio has also been increasing steadily, indicating that a higher proportion of the company's capital structure is comprised of debt. This suggests a moderate level of financial risk as the ratio exceeds 1 in all periods.
The debt-to-equity ratio, which was not available in some periods, has shown a significant increase in Q1 2023, indicating that the company is heavily reliant on debt to finance its operations compared to equity. This high ratio could be a cause for concern regarding the company's financial risk and leverage.
The financial leverage ratio, although not available in some periods, has also increased in Q1 2023, signaling a high level of financial leverage and reliance on debt financing. This could increase the company's financial risk and vulnerability to economic downturns.
Overall, the solvency ratios of Booking Holdings Inc suggest a moderate to high level of financial leverage and risk, with a significant portion of the company's capital structure being comprised of debt. Investors and stakeholders should monitor these ratios to assess the company's ability to meet its long-term financial obligations.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.51 | 7.88 | 8.87 | 10.40 | 13.05 | 14.35 | 13.50 | 9.81 | 7.47 | 4.19 | -0.55 | -1.62 | -1.77 | 2.17 | 9.41 | 16.97 | 20.09 | 19.69 | 19.38 | 19.50 |
The interest coverage ratio for Booking Holdings Inc has been relatively stable over the quarters analyzed, showing a decreasing trend from Q4 2022 to Q1 2023 before picking up slightly in Q2 and Q3 2023.
The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. A higher ratio indicates the company is more capable of meeting its interest obligations.
Booking Holdings Inc's interest coverage ratios have generally been healthy and above 1, indicating that the company's operating income is sufficient to cover its interest expenses each quarter. The downward trend from Q4 2022 to Q1 2023 may suggest that the company's interest expenses increased relative to its operating income during that period.
However, the recent increases in the interest coverage ratio in Q2 and Q3 2023 are positive signs, showing improvement in the company's ability to cover its interest payments. Overall, Booking Holdings Inc appears to have a strong ability to meet its interest obligations based on its historical interest coverage ratios.