Stock Analysis on Net
Stock Analysis on Net

Booking Holdings Inc. (NASDAQ:BKNG)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Booking Holdings Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
International 1,371 1,145 665 320 915
U.S. Federal 291 (8) 68 (9) 22
U.S. State 8 (15) 12 (16) 34
Current income tax expense 1,670 1,122 745 295 971
International (47) (61) (103) (62) (12)
U.S. Federal (411) (172) (323) 296 166
U.S. State (20) (24) (19) (21) (32)
Deferred income tax expense (benefit) (478) (257) (445) 213 122
Income tax expense 1,192 865 300 508 1,093

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).

Item Description The company
Current income tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Booking Holdings Inc. current income tax expense increased from 2021 to 2022 and from 2022 to 2023.
Deferred income tax expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Booking Holdings Inc. deferred income tax expense (benefit) increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Booking Holdings Inc. income tax expense increased from 2021 to 2022 and from 2022 to 2023.

Effective Income Tax Rate (EITR)

Booking Holdings Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
U.S. federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective income tax rate 21.75% 22.05% 20.48% 89.59% 18.35%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Booking Holdings Inc. effective income tax rate increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

Booking Holdings Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net operating loss carryforward, U.S. 89 95 88 67 37
Net operating loss carryforward, International 200 176 137 81 15
Accrued expenses 70 74 50 47 35
Stock-based compensation and other stock-based payments 47 36 50 40 49
Unrealized losses on investments 83 — — — —
Foreign currency translation adjustment 66 83 48 29 36
Tax credits 39 35 19 9 14
Euro-denominated debt — — — 77 —
Operating lease liabilities 20 29 38 43 38
Property and equipment 195 126 95 11 31
Other 16 7 11 — —
Deferred tax assets, gross 825 661 536 404 255
Valuation allowance on deferred tax assets (114) (120) (37) (58) (45)
Deferred tax assets 711 541 499 346 210
Discount on convertible notes — — (20) (29) (10)
Intangible assets and other (140) (174) (192) (119) (133)
Euro-denominated debt (11) (84) (20) — (14)
State income tax on accumulated unremitted international earnings (6) (8) (8) (5) (8)
Unrealized gains on investments — (202) (417) (550) (191)
Operating lease assets (19) (26) (37) (38) (35)
Installment sale liability (118) (119) (156) (263) (284)
Other — — — (14) (11)
Deferred tax liabilities (294) (613) (850) (1,018) (686)
Net deferred tax assets (liabilities) 417 (72) (351) (672) (476)

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).

Item Description The company
Deferred tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Booking Holdings Inc. deferred tax assets, gross increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Booking Holdings Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Booking Holdings Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Booking Holdings Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets (reported in Other assets, net) 675 613 554 455 400
Deferred tax liabilities 258 685 905 1,127 876

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).

Item Description The company
Deferred tax assets (reported in Other assets, net) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Booking Holdings Inc. deferred tax assets (reported in Other assets, net) increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Booking Holdings Inc. deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

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
Less: Noncurrent deferred tax assets, net 675 613 554 455 400
Total assets (adjusted) 23,667 24,748 23,087 21,419 21,002
Adjustment to Total Liabilities
Total liabilities (as reported) 27,086 22,579 17,463 16,981 15,469
Less: Noncurrent deferred tax liabilities, net 258 685 905 1,127 876
Total liabilities (adjusted) 26,828 21,894 16,558 15,854 14,593
Adjustment to Stockholders’ Equity (deficit)
Stockholders’ equity (deficit) (as reported) (2,744) 2,782 6,178 4,893 5,933
Less: Net deferred tax assets (liabilities) 417 (72) (351) (672) (476)
Stockholders’ equity (deficit) (adjusted) (3,161) 2,854 6,529 5,565 6,409
Adjustment to Net Income
Net income (as reported) 4,289 3,058 1,165 59 4,865
Add: Deferred income tax expense (benefit) (478) (257) (445) 213 122
Net income (adjusted) 3,811 2,801 720 272 4,987

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).

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Booking Holdings Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 20.07% 17.89% 10.63% 0.87% 32.29%
Adjusted net profit margin 17.84% 16.39% 6.57% 4.00% 33.10%
Total Asset Turnover
Reported total asset turnover 0.88 0.67 0.46 0.31 0.70
Adjusted total asset turnover 0.90 0.69 0.47 0.32 0.72
Financial Leverage
Reported financial leverage — 9.12 3.83 4.47 3.61
Adjusted financial leverage — 8.67 3.54 3.85 3.28
Return on Equity (ROE)
Reported ROE — 109.92% 18.86% 1.21% 82.00%
Adjusted ROE — 98.14% 11.03% 4.89% 77.81%
Return on Assets (ROA)
Reported ROA 17.62% 12.06% 4.93% 0.27% 22.73%
Adjusted ROA 16.10% 11.32% 3.12% 1.27% 23.75%

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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Booking Holdings Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
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 adjusted 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 Net Profit Margin

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
Revenues 21,365 17,090 10,958 6,796 15,066
Profitability Ratio
Net profit margin1 20.07% 17.89% 10.63% 0.87% 32.29%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 3,811 2,801 720 272 4,987
Revenues 21,365 17,090 10,958 6,796 15,066
Profitability Ratio
Adjusted net profit margin2 17.84% 16.39% 6.57% 4.00% 33.10%

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 Net profit margin = 100 × Net income ÷ Revenues
= 100 × 4,289 ÷ 21,365 = 20.07%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 3,811 ÷ 21,365 = 17.84%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Booking Holdings Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues 21,365 17,090 10,958 6,796 15,066
Adjusted total assets 23,667 24,748 23,087 21,419 21,002
Activity Ratio
Adjusted total asset turnover2 0.90 0.69 0.47 0.32 0.72

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 ÷ 23,667 = 0.90

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 Financial Leverage

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 assets 24,342 25,361 23,641 21,874 21,402
Stockholders’ equity (deficit) (2,744) 2,782 6,178 4,893 5,933
Solvency Ratio
Financial leverage1 — 9.12 3.83 4.47 3.61
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 23,667 24,748 23,087 21,419 21,002
Adjusted stockholders’ equity (deficit) (3,161) 2,854 6,529 5,565 6,409
Solvency Ratio
Adjusted financial leverage2 — 8.67 3.54 3.85 3.28

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 Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 24,342 ÷ -2,744 = —

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity (deficit)
= 23,667 ÷ -3,161 = —

Adjusted Return on Equity (ROE)

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
Stockholders’ equity (deficit) (2,744) 2,782 6,178 4,893 5,933
Profitability Ratio
ROE1 — 109.92% 18.86% 1.21% 82.00%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 3,811 2,801 720 272 4,987
Adjusted stockholders’ equity (deficit) (3,161) 2,854 6,529 5,565 6,409
Profitability Ratio
Adjusted ROE2 — 98.14% 11.03% 4.89% 77.81%

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 ROE = 100 × Net income ÷ Stockholders’ equity (deficit)
= 100 × 4,289 ÷ -2,744 = —

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity (deficit)
= 100 × 3,811 ÷ -3,161 = —

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 3,811 2,801 720 272 4,987
Adjusted total assets 23,667 24,748 23,087 21,419 21,002
Profitability Ratio
Adjusted ROA2 16.10% 11.32% 3.12% 1.27% 23.75%

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 × Adjusted net income ÷ Adjusted total assets
= 100 × 3,811 ÷ 23,667 = 16.10%

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