Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Booking Holdings Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Booking Holdings Inc. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Booking Holdings Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Booking Holdings Inc. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Booking Holdings Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Booking Holdings Inc. interest coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Booking Holdings Inc. fixed charge coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Equity
Booking Holdings Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current finance lease liabilities | 34) | 21) | 4) | —) | —) | |
| Short-term debt | 1,961) | 500) | 1,989) | 985) | 988) | |
| Non-current finance lease liabilities | 34) | 32) | 6) | —) | —) | |
| Long-term debt | 12,223) | 11,985) | 8,937) | 11,029) | 7,640) | |
| 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 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Airbnb Inc. | 0.24 | 0.36 | 0.42 | 0.63 | — | |
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Debt to Equity, Sector | ||||||
| Consumer Services | — | — | 18.97 | — | — | |
| Debt to Equity, Industry | ||||||
| Consumer Discretionary | 1.37 | 1.54 | 1.52 | 2.37 | 2.78 | |
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 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 14,252 ÷ -2,744 = —
2 Click competitor name to see calculations.
Debt to Equity (including Operating Lease Liability)
Booking Holdings Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current finance lease liabilities | 34) | 21) | 4) | —) | —) | |
| Short-term debt | 1,961) | 500) | 1,989) | 985) | 988) | |
| Non-current finance lease liabilities | 34) | 32) | 6) | —) | —) | |
| Long-term debt | 12,223) | 11,985) | 8,937) | 11,029) | 7,640) | |
| Total debt | 14,252) | 12,538) | 10,936) | 12,014) | 8,628) | |
| Current operating lease liabilities (classified in Accrued expenses and other current liabilities) | 152) | 125) | 143) | 159) | 161) | |
| Non-current operating lease liabilities | 599) | 552) | 351) | 366) | 462) | |
| Total debt (including operating lease liability) | 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 | ||||||
| Debt to equity (including operating lease liability)1 | — | 4.75 | 1.85 | 2.56 | 1.56 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | 0.28 | 0.42 | 0.51 | 0.80 | — | |
| Chipotle Mexican Grill Inc. | 1.32 | 1.58 | 1.53 | 1.56 | 1.69 | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Consumer Services | — | — | 27.13 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 1.72 | 1.94 | 1.90 | 2.84 | 3.08 | |
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 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit)
= 15,003 ÷ -2,744 = —
2 Click competitor name to see calculations.
Debt to Capital
Booking Holdings Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current finance lease liabilities | 34) | 21) | 4) | —) | —) | |
| Short-term debt | 1,961) | 500) | 1,989) | 985) | 988) | |
| Non-current finance lease liabilities | 34) | 32) | 6) | —) | —) | |
| Long-term debt | 12,223) | 11,985) | 8,937) | 11,029) | 7,640) | |
| 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) | |
| Total capital | 11,508) | 15,320) | 17,114) | 16,907) | 14,561) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 1.24 | 0.82 | 0.64 | 0.71 | 0.59 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Airbnb Inc. | 0.20 | 0.26 | 0.29 | 0.39 | — | |
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| McDonald’s Corp. | 1.13 | 1.19 | 1.15 | 1.26 | 1.32 | |
| Starbucks Corp. | 2.08 | 2.41 | 1.57 | 1.96 | 2.26 | |
| Debt to Capital, Sector | ||||||
| Consumer Services | 1.06 | 1.06 | 0.95 | 1.09 | 1.14 | |
| Debt to Capital, Industry | ||||||
| Consumer Discretionary | 0.58 | 0.61 | 0.60 | 0.70 | 0.74 | |
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 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 14,252 ÷ 11,508 = 1.24
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Booking Holdings Inc. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Booking Holdings Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current finance lease liabilities | 34) | 21) | 4) | —) | —) | |
| Short-term debt | 1,961) | 500) | 1,989) | 985) | 988) | |
| Non-current finance lease liabilities | 34) | 32) | 6) | —) | —) | |
| Long-term debt | 12,223) | 11,985) | 8,937) | 11,029) | 7,640) | |
| Total debt | 14,252) | 12,538) | 10,936) | 12,014) | 8,628) | |
| Current operating lease liabilities (classified in Accrued expenses and other current liabilities) | 152) | 125) | 143) | 159) | 161) | |
| Non-current operating lease liabilities | 599) | 552) | 351) | 366) | 462) | |
| Total debt (including operating lease liability) | 15,003) | 13,215) | 11,430) | 12,539) | 9,251) | |
| Stockholders’ equity (deficit) | (2,744) | 2,782) | 6,178) | 4,893) | 5,933) | |
| Total capital (including operating lease liability) | 12,259) | 15,997) | 17,608) | 17,432) | 15,184) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 1.22 | 0.83 | 0.65 | 0.72 | 0.61 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | 0.22 | 0.30 | 0.34 | 0.44 | — | |
| Chipotle Mexican Grill Inc. | 0.57 | 0.61 | 0.61 | 0.61 | 0.63 | |
| McDonald’s Corp. | 1.10 | 1.14 | 1.10 | 1.18 | 1.21 | |
| Starbucks Corp. | 1.48 | 1.58 | 1.29 | 1.46 | 2.26 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Consumer Services | 1.04 | 1.05 | 0.96 | 1.07 | 1.11 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.63 | 0.66 | 0.65 | 0.74 | 0.76 | |
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 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 15,003 ÷ 12,259 = 1.22
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Booking Holdings Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Booking Holdings Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current finance lease liabilities | 34) | 21) | 4) | —) | —) | |
| Short-term debt | 1,961) | 500) | 1,989) | 985) | 988) | |
| Non-current finance lease liabilities | 34) | 32) | 6) | —) | —) | |
| Long-term debt | 12,223) | 11,985) | 8,937) | 11,029) | 7,640) | |
| Total debt | 14,252) | 12,538) | 10,936) | 12,014) | 8,628) | |
| Total assets | 24,342) | 25,361) | 23,641) | 21,874) | 21,402) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.59 | 0.49 | 0.46 | 0.55 | 0.40 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Airbnb Inc. | 0.10 | 0.12 | 0.14 | 0.17 | — | |
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| McDonald’s Corp. | 0.73 | 0.74 | 0.66 | 0.71 | 0.72 | |
| Starbucks Corp. | 0.52 | 0.53 | 0.47 | 0.54 | 0.58 | |
| Debt to Assets, Sector | ||||||
| Consumer Services | 0.52 | 0.53 | 0.49 | 0.56 | 0.58 | |
| Debt to Assets, Industry | ||||||
| Consumer Discretionary | 0.34 | 0.35 | 0.36 | 0.41 | 0.45 | |
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 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 14,252 ÷ 24,342 = 0.59
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Booking Holdings Inc. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Booking Holdings Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current finance lease liabilities | 34) | 21) | 4) | —) | —) | |
| Short-term debt | 1,961) | 500) | 1,989) | 985) | 988) | |
| Non-current finance lease liabilities | 34) | 32) | 6) | —) | —) | |
| Long-term debt | 12,223) | 11,985) | 8,937) | 11,029) | 7,640) | |
| Total debt | 14,252) | 12,538) | 10,936) | 12,014) | 8,628) | |
| Current operating lease liabilities (classified in Accrued expenses and other current liabilities) | 152) | 125) | 143) | 159) | 161) | |
| Non-current operating lease liabilities | 599) | 552) | 351) | 366) | 462) | |
| Total debt (including operating lease liability) | 15,003) | 13,215) | 11,430) | 12,539) | 9,251) | |
| Total assets | 24,342) | 25,361) | 23,641) | 21,874) | 21,402) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.62 | 0.52 | 0.48 | 0.57 | 0.43 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | 0.11 | 0.15 | 0.18 | 0.22 | — | |
| Chipotle Mexican Grill Inc. | 0.50 | 0.54 | 0.53 | 0.53 | 0.56 | |
| McDonald’s Corp. | 0.95 | 0.97 | 0.92 | 0.98 | 1.00 | |
| Starbucks Corp. | 0.83 | 0.84 | 0.75 | 0.84 | 0.58 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Consumer Services | 0.71 | 0.72 | 0.70 | 0.78 | 0.76 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.43 | 0.44 | 0.45 | 0.50 | 0.50 | |
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 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 15,003 ÷ 24,342 = 0.62
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Booking Holdings Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Booking Holdings Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Airbnb Inc. | 2.53 | 2.88 | 2.87 | 3.62 | — | |
| Chipotle Mexican Grill Inc. | 2.63 | 2.93 | 2.90 | 2.96 | 3.03 | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Financial Leverage, Sector | ||||||
| Consumer Services | — | — | 38.83 | — | — | |
| Financial Leverage, Industry | ||||||
| Consumer Discretionary | 4.00 | 4.38 | 4.26 | 5.72 | 6.22 | |
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 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 24,342 ÷ -2,744 = —
2 Click competitor name to see calculations.
Interest Coverage
Booking Holdings Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 4,289) | 3,058) | 1,165) | 59) | 4,865) | |
| Add: Income tax expense | 1,192) | 865) | 300) | 508) | 1,093) | |
| Add: Interest expense | 897) | 391) | 334) | 356) | 266) | |
| Earnings before interest and tax (EBIT) | 6,378) | 4,314) | 1,799) | 923) | 6,224) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 7.11 | 11.03 | 5.39 | 2.59 | 23.40 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Airbnb Inc. | 26.33 | 83.88 | 0.31 | -26.27 | — | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| McDonald’s Corp. | 8.73 | 7.48 | 8.70 | 6.04 | 8.15 | |
| Starbucks Corp. | 10.82 | 9.76 | 12.40 | 3.66 | 14.49 | |
| Interest Coverage, Sector | ||||||
| Consumer Services | 9.69 | 10.10 | 7.78 | 2.60 | 12.00 | |
| Interest Coverage, Industry | ||||||
| Consumer Discretionary | 12.27 | 9.45 | 13.29 | 7.81 | 9.65 | |
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 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,378 ÷ 897 = 7.11
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Booking Holdings Inc. interest coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Fixed Charge Coverage
Booking Holdings Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 4,289) | 3,058) | 1,165) | 59) | 4,865) | |
| Add: Income tax expense | 1,192) | 865) | 300) | 508) | 1,093) | |
| Add: Interest expense | 897) | 391) | 334) | 356) | 266) | |
| Earnings before interest and tax (EBIT) | 6,378) | 4,314) | 1,799) | 923) | 6,224) | |
| Add: Operating lease cost | 180) | 160) | 185) | 194) | 183) | |
| Earnings before fixed charges and tax | 6,558) | 4,474) | 1,984) | 1,117) | 6,407) | |
| Interest expense | 897) | 391) | 334) | 356) | 266) | |
| Operating lease cost | 180) | 160) | 185) | 194) | 183) | |
| Fixed charges | 1,077) | 551) | 519) | 550) | 449) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 6.09 | 8.12 | 3.82 | 2.03 | 14.27 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Airbnb Inc. | 15.91 | 20.69 | 0.42 | -16.81 | — | |
| Chipotle Mexican Grill Inc. | 4.71 | 3.98 | 3.23 | 1.88 | 2.49 | |
| McDonald’s Corp. | 4.62 | 3.92 | 4.32 | 3.28 | 3.94 | |
| Starbucks Corp. | 3.51 | 3.08 | 3.61 | 1.58 | 3.52 | |
| Fixed Charge Coverage, Sector | ||||||
| Consumer Services | 4.75 | 4.32 | 3.66 | 1.60 | 4.59 | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Discretionary | 4.98 | 3.70 | 5.63 | 3.72 | 4.20 | |
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 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,558 ÷ 1,077 = 6.09
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Booking Holdings Inc. fixed charge coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |