Booking Holdings Inc. (NASDAQ:BKNG)

Current ratio

The current ratio exhibited a general decline over the observed periods. Starting from a relatively high level of 2.24 in March 2020, it increased to a peak of 3.56 by December 2020, indicating strong short-term liquidity during that time. However, post-2020 the ratio gradually decreased, reaching lows around 1.22 to 1.31 by the end of 2024 and early 2025. This trend suggests a reduction in current assets relative to current liabilities, implying a weakening in the company's ability to cover short-term obligations with its current assets over time.

Quick ratio

The quick ratio closely mirrors the behavior observed in the current ratio, beginning at 1.7 in March 2020 and climbing to a high of 3.24 in December 2020. Subsequently, it displayed a downward trend, with values stabilizing slightly above 1.1 in the latter years, specifically between 1.11 and 1.24 from late 2023 to early 2025. This movement indicates a similar weakening in liquidity when excluding inventory, reflecting decreased immediate liquidity available to meet short-term liabilities.

Cash ratio

The cash ratio followed a comparable pattern; initially rising from 1.54 in March 2020 to a peak of 3.08 in December 2020. From 2021 onwards, the ratio steadily declined, reaching a low near 0.90 in late 2024. The small upticks seen in early 2025 (up to 1.03) suggest slight improvements but do not reverse the overall downward trend. This indicates a decrease in cash and cash equivalents relative to current liabilities, highlighting a reduction in highly liquid assets available for immediate debt settlement.

Current Assets

The current assets demonstrate an overall upward trend from March 2020 through March 2025, starting at approximately $9.26 billion and reaching close to $19.95 billion by the end of the period. There are fluctuations within this timeframe, including notable decreases in the fourth quarter of 2021 and again in the fourth quarter of 2023. The data indicate a general increase in liquidity resources over the years, despite some temporary declines.

Current Liabilities

Current liabilities exhibit a rising pattern with significant growth from $4.14 billion in March 2020 to a peak of about $18.21 billion by June 2024, before slightly decreasing to approximately $16.39 billion by March 2025. The increase is especially pronounced starting from early 2021, with several quarters experiencing marked jumps, indicating increasing short-term financial obligations over the period observed.

Current Ratio

The current ratio, which measures liquidity by comparing current assets to current liabilities, shows a distinct downward trend from March 2020 through March 2025. The ratio began at a healthy level of 2.24 in March 2020 and peaked at 3.56 by December 2020, reflecting strong short-term financial stability at that time. From 2021 onwards, the ratio declined to levels fluctuating around 1.2 to 1.3 in the later quarters, suggesting a tightening liquidity position and a reduced margin over current liabilities. This decline highlights increasing pressure on liquidity despite the growth in current assets, primarily due to the sharper rise in current liabilities.

The analysis of the quarterly financial data reveals several key patterns and trends in liquidity over the observed periods.

Total Quick Assets

The total quick assets demonstrate an overall increasing trend from March 31, 2020, to March 31, 2025. Initially, there was a substantial rise from 7,030 million USD in early 2020, peaking around 18,047 million USD by June 2023. However, after this peak, a slight decline and fluctuations were observed, settling at approximately 18,868 million USD by March 2025. This indicates a generally growing pool of liquid assets, albeit with some volatility in recent quarters.

Current Liabilities

Current liabilities rose markedly throughout the period. Starting at 4,136 million USD in March 2020, there was a notable jump to over 6,000 million USD by 2021, followed by further increases, reaching a high of 18,206 million USD by June 2024. This sharp rise in current liabilities reflects growing short-term obligations, which presents increased liquidity pressure on the entity over time.

Quick Ratio

The quick ratio exhibits a declining trend from an initial strong position of 1.7 in March 2020, reaching its peak at 3.24 in December 2020. Post-2020, the ratio shows a consistent decline, dropping to around 1.15 by mid-2024, with minor fluctuations. The ratio stabilizes slightly near 1.15 by March 2025, reflecting a relative decrease in liquidity coverage of current liabilities by quick assets.

This downward trend, despite the growth in total quick assets, is mainly influenced by the more rapid growth of current liabilities. As a result, the company's short-term liquidity cushion has narrowed over time, which may signal increasing risk or pressure on meeting short-term financial obligations without relying on inventory or fixed assets.

In summary, while total quick assets have expanded, the faster growth of current liabilities has compressed the quick ratio significantly after its peak in late 2020. This indicates that liquidity, as measured by the ability to cover current liabilities with highly liquid assets, has weakened over recent years. Continuous monitoring will be essential to assess whether the company can maintain sufficient liquidity to meet short-term obligations under evolving market conditions.

Over the observed periods, total cash assets exhibited a generally fluctuating trend with notable increases and decreases at different points in time. Starting from US$6,363 million at the end of March 2020, the cash assets rose substantially, reaching a first peak of around US$12,151 million in March 2021. Subsequently, there were moderate oscillations with totals varying between approximately US$9,137 million and US$15,242 million through late 2023. Towards the most recent dates, a mild declining pattern appears, with total cash assets settling near US$15,578 million by March 2025.

Current liabilities displayed a clearer upward trajectory over the same period. Beginning at roughly US$4,136 million in March 2020, the liabilities grew sharply to a range above US$6,000 million by early 2021. This upward trend persisted, with liabilities expanding steadily, reaching a maximum above US$18,000 million around June 2024, before a slight reduction to approximately US$16,394 million by March 2025. This consistent increase in current liabilities outpaced the growth in total cash assets, suggesting potential changes in short-term financial obligations or operational scale.

The cash ratio, an indicator of liquidity calculated as cash assets divided by current liabilities, reflected these movements. Initially, the ratio rose from 1.54 at March 2020 to a peak above 3.0 by December 2020, indicating a strong liquidity position relative to current liabilities during this period. However, from 2021 onwards, the cash ratio generally declined, trending below 1.0 during the latest quarters, though with minor fluctuations. This decline reflects the increasing current liabilities outstripping cash assets growth, pointing to a tightening liquidity profile over time.

In summary, while total cash assets demonstrated overall growth with short-term volatilities, current liabilities increased at a stronger rate, leading to a declining cash ratio and suggesting a gradual reduction in liquidity strength over the analyzed timeframe.

Total Cash Assets

Showed substantial growth initially, peaking intermittently near US$15 billion, with slight declines towards the end of the period.

Current Liabilities

Consistently increased, nearly quadrupling from about US$4 billion to over US$16 billion, indicating heightened short-term obligations.

Cash Ratio

Peaked above 3.0 during late 2020, then declined below 1.0 in recent periods, highlighting a decrease in liquidity relative to current liabilities.