Stock Analysis on Net
Stock Analysis on Net

Booking Holdings Inc. (NASDAQ:BKNG)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Booking Holdings Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 — = 17.62% × —
Dec 31, 2022 109.92% = 12.06% × 9.12
Dec 31, 2021 18.86% = 4.93% × 3.83
Dec 31, 2020 1.21% = 0.27% × 4.47
Dec 31, 2019 82.00% = 22.73% × 3.61

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).

Three-Component Disaggregation of ROE

Booking Holdings Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 — = 20.07% × 0.88 × —
Dec 31, 2022 109.92% = 17.89% × 0.67 × 9.12
Dec 31, 2021 18.86% = 10.63% × 0.46 × 3.83
Dec 31, 2020 1.21% = 0.87% × 0.31 × 4.47
Dec 31, 2019 82.00% = 32.29% × 0.70 × 3.61

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).

Five-Component Disaggregation of ROE

Booking Holdings Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 — = 0.78 × 0.86 × 29.85% × 0.88 × —
Dec 31, 2022 109.92% = 0.78 × 0.91 × 25.24% × 0.67 × 9.12
Dec 31, 2021 18.86% = 0.80 × 0.81 × 16.42% × 0.46 × 3.83
Dec 31, 2020 1.21% = 0.10 × 0.61 × 13.58% × 0.31 × 4.47
Dec 31, 2019 82.00% = 0.82 × 0.96 × 41.31% × 0.70 × 3.61

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).

Two-Component Disaggregation of ROA

Booking Holdings Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 17.62% = 20.07% × 0.88
Dec 31, 2022 12.06% = 17.89% × 0.67
Dec 31, 2021 4.93% = 10.63% × 0.46
Dec 31, 2020 0.27% = 0.87% × 0.31
Dec 31, 2019 22.73% = 32.29% × 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).

The primary reason for the increase in return on assets ratio (ROA) over 2023 year is the increase in asset turnover ratio.

Four-Component Disaggregation of ROA

Booking Holdings Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 17.62% = 0.78 × 0.86 × 29.85% × 0.88
Dec 31, 2022 12.06% = 0.78 × 0.91 × 25.24% × 0.67
Dec 31, 2021 4.93% = 0.80 × 0.81 × 16.42% × 0.46
Dec 31, 2020 0.27% = 0.10 × 0.61 × 13.58% × 0.31
Dec 31, 2019 22.73% = 0.82 × 0.96 × 41.31% × 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).

The primary reason for the increase in return on assets ratio (ROA) over 2023 year is the increase in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Booking Holdings Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 20.07% = 0.78 × 0.86 × 29.85%
Dec 31, 2022 17.89% = 0.78 × 0.91 × 25.24%
Dec 31, 2021 10.63% = 0.80 × 0.81 × 16.42%
Dec 31, 2020 0.87% = 0.10 × 0.61 × 13.58%
Dec 31, 2019 32.29% = 0.82 × 0.96 × 41.31%

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).

The primary reason for the increase in net profit margin ratio over 2023 year is the increase in operating profitability measured by EBIT margin ratio.