Stock Analysis on Net

Booking Holdings Inc. (NASDAQ:BKNG)

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Adjustments to Financial Statements for Operating Leases

Booking Holdings Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 24,342 25,361 23,641 21,874 21,402
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 24,342 25,361 23,641 21,874 21,402
Adjustment to Total Debt
Total debt (as reported) 14,252 12,538 10,936 12,014 8,628
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Current operating lease liabilities (classified in Accrued expenses and other current liabilities) 152 125 143 159 161
Add: Non-current operating lease liabilities 599 552 351 366 462
Total debt (adjusted) 15,003 13,215 11,430 12,539 9,251

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1, 2 Equal to total present value of future operating lease payments.


Booking Holdings Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Booking Holdings Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover1
Reported total asset turnover 0.88 0.67 0.46 0.31 0.70
Adjusted total asset turnover 0.88 0.67 0.46 0.31 0.70
Debt to Equity2
Reported debt to equity 4.51 1.77 2.46 1.45
Adjusted debt to equity 4.75 1.85 2.56 1.56
Return on Assets3 (ROA)
Reported ROA 17.62% 12.06% 4.93% 0.27% 22.73%
Adjusted ROA 17.62% 12.06% 4.93% 0.27% 22.73%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Booking Holdings Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Booking Holdings Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Booking Holdings Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues 21,365 17,090 10,958 6,796 15,066
Total assets 24,342 25,361 23,641 21,874 21,402
Activity Ratio
Total asset turnover1 0.88 0.67 0.46 0.31 0.70
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenues 21,365 17,090 10,958 6,796 15,066
Adjusted total assets 24,342 25,361 23,641 21,874 21,402
Activity Ratio
Adjusted total asset turnover2 0.88 0.67 0.46 0.31 0.70

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 21,365 ÷ 24,342 = 0.88

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 21,365 ÷ 24,342 = 0.88

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Booking Holdings Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total debt 14,252 12,538 10,936 12,014 8,628
Stockholders’ equity (deficit) (2,744) 2,782 6,178 4,893 5,933
Solvency Ratio
Debt to equity1 4.51 1.77 2.46 1.45
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 15,003 13,215 11,430 12,539 9,251
Stockholders’ equity (deficit) (2,744) 2,782 6,178 4,893 5,933
Solvency Ratio
Adjusted debt to equity2 4.75 1.85 2.56 1.56

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 14,252 ÷ -2,744 =

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity (deficit)
= 15,003 ÷ -2,744 =


Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income 4,289 3,058 1,165 59 4,865
Total assets 24,342 25,361 23,641 21,874 21,402
Profitability Ratio
ROA1 17.62% 12.06% 4.93% 0.27% 22.73%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income 4,289 3,058 1,165 59 4,865
Adjusted total assets 24,342 25,361 23,641 21,874 21,402
Profitability Ratio
Adjusted ROA2 17.62% 12.06% 4.93% 0.27% 22.73%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 4,289 ÷ 24,342 = 17.62%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 4,289 ÷ 24,342 = 17.62%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Booking Holdings Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.