Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Booking Holdings Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of short-term operating activity ratios reveals several noteworthy trends between 2021 and 2025. Generally, the company demonstrates fluctuating efficiency in managing its receivables and payables, with a significant increase in working capital turnover during the analyzed period.
- Receivables Turnover
- Receivables turnover decreased from 8.07 in 2021 to 6.57 in 2023, indicating a lengthening of the time it takes to collect on credit sales. A slight recovery to 7.42 was observed in 2024, followed by a further decline to 7.05 in 2025. This suggests potential challenges in maintaining consistent collection efficiency.
- Payables Turnover
- Payables turnover exhibited a relatively stable pattern from 2021 to 2023, ranging between 6.14 and 6.91. A modest increase to 6.21 occurred in 2024, but a more pronounced decrease to 5.28 was recorded in 2025. This implies a potential slowing in the rate at which the company pays its suppliers towards the end of the period.
- Working Capital Turnover
- Working capital turnover experienced a substantial increase, rising from 1.59 in 2021 to 5.77 in 2023. While it decreased to 4.90 in 2024 and 4.84 in 2025, it remained significantly higher than the 2021 and 2022 levels. This suggests improved efficiency in utilizing working capital to generate sales, although the rate of improvement has slowed in recent years.
- Average Receivable Collection Period
- The average receivable collection period lengthened from 45 days in 2021 to 56 days in 2023. A slight decrease to 49 days was seen in 2024, followed by an increase to 52 days in 2025. This trend aligns with the observed decline in receivables turnover and indicates a growing period required to convert receivables into cash.
- Average Payables Payment Period
- The average payables payment period consistently increased throughout the period, rising from 53 days in 2021 to 69 days in 2025. This suggests the company is taking longer to settle its obligations to suppliers, potentially to manage cash flow or take advantage of supplier credit terms.
In summary, the company appears to be becoming less efficient in collecting receivables while simultaneously extending its payment terms to suppliers. The significant increase in working capital turnover suggests improved overall efficiency in utilizing its working capital, but the trends in receivables and payables warrant further investigation.
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Turnover Ratios
Average No. Days
Receivables Turnover
Booking Holdings Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 26,917) | 23,739) | 21,365) | 17,090) | 10,958) | |
| Accounts receivable, net of allowance for expected credit losses | 3,820) | 3,199) | 3,253) | 2,229) | 1,358) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 7.05 | 7.42 | 6.57 | 7.67 | 8.07 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Airbnb Inc. | 65.81 | 75.52 | 48.38 | 52.17 | 53.67 | |
| Chipotle Mexican Grill Inc. | 76.22 | 78.59 | 85.44 | 80.79 | 75.77 | |
| DoorDash, Inc. | 12.38 | 14.65 | 16.20 | 16.46 | 14.01 | |
| McDonald’s Corp. | 3.93 | 4.10 | 3.92 | 4.14 | 5.23 | |
| Starbucks Corp. | 29.11 | 29.80 | 30.38 | 27.44 | 30.92 | |
| Receivables Turnover, Sector | ||||||
| Consumer Services | 12.39 | 13.15 | 12.28 | 13.21 | 14.42 | |
| Receivables Turnover, Industry | ||||||
| Consumer Discretionary | 17.49 | 18.63 | 17.84 | 17.95 | 21.17 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, net of allowance for expected credit losses
= 26,917 ÷ 3,820 = 7.05
2 Click competitor name to see calculations.
The receivables turnover ratio exhibits fluctuations over the five-year period. While revenues demonstrate a consistent upward trajectory, the receivables turnover ratio does not mirror this pattern precisely. A review of the trend reveals a general decline followed by a slight recovery.
- Overall Trend
- The receivables turnover ratio decreased from 8.07 in 2021 to 6.57 in 2023, indicating a lengthening of the average collection period. However, the ratio experienced a partial rebound in 2024, rising to 7.42, and then decreased slightly to 7.05 in 2025. This suggests potential improvements in collection efficiency followed by a stabilization at a level below the initial value.
- Revenue and Receivables Relationship
- Revenues increased significantly from US$10,958 million in 2021 to US$26,917 million in 2025. Accounts receivable, net of allowance, also increased over the same period, rising from US$1,358 million to US$3,820 million. The increase in receivables, while expected with revenue growth, has not been proportionally aligned with the revenue increase, contributing to the initial decline in the receivables turnover ratio.
- Year-over-Year Changes
- The largest decrease in the receivables turnover ratio occurred between 2022 and 2023, falling from 7.67 to 6.57. This represents a substantial slowdown in the rate at which receivables are being collected. The subsequent increase from 2023 to 2024 indicates a possible improvement in collection processes or a change in customer payment terms. The slight decrease in 2025 suggests this improvement may have plateaued.
In conclusion, the receivables turnover ratio indicates a dynamic relationship between revenue generation and collection efficiency. While revenue growth is evident, the fluctuations in the ratio suggest a need for continued monitoring of accounts receivable management practices.
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Payables Turnover
Booking Holdings Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 26,917) | 23,739) | 21,365) | 17,090) | 10,958) | |
| Accounts payable | 5,094) | 3,824) | 3,480) | 2,507) | 1,586) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 5.28 | 6.21 | 6.14 | 6.82 | 6.91 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Airbnb Inc. | 8.99 | 13.23 | 12.08 | 10.94 | 9.77 | |
| Chipotle Mexican Grill Inc. | 41.82 | 39.38 | 36.86 | 35.61 | 35.79 | |
| DoorDash, Inc. | 16.97 | 17.26 | 21.25 | 22.85 | 14.52 | |
| McDonald’s Corp. | 7.20 | 8.10 | 7.46 | 7.53 | 7.99 | |
| Starbucks Corp. | 15.50 | 16.59 | 16.92 | 16.57 | 17.06 | |
| Payables Turnover, Sector | ||||||
| Consumer Services | 9.13 | 10.43 | 10.37 | 11.10 | 11.54 | |
| Payables Turnover, Industry | ||||||
| Consumer Discretionary | 4.85 | 5.38 | 5.20 | 4.82 | 4.67 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Payables turnover = Revenues ÷ Accounts payable
= 26,917 ÷ 5,094 = 5.28
2 Click competitor name to see calculations.
The accounts payable turnover ratio exhibits a generally decreasing trend over the five-year period. While revenues consistently increased, the rate at which the company pays its suppliers has slowed. This analysis details the observed patterns and potential implications.
- Payables Turnover Trend
- The payables turnover ratio decreased from 6.91 in 2021 to 5.28 in 2025. This indicates a lengthening of the time it takes for the company to pay its suppliers. A slight recovery was observed in 2023, increasing to 6.21, but this was followed by a further decline in 2025.
- Relationship to Revenue Growth
- Despite substantial revenue growth – increasing from US$10,958 million in 2021 to US$26,917 million in 2025 – the payables turnover ratio has declined. This suggests that the company is not leveraging its increased purchasing power to negotiate extended payment terms, or that its accounts payable are growing at a faster rate than its revenues.
- Accounts Payable Growth
- Accounts payable increased consistently throughout the period, rising from US$1,586 million in 2021 to US$5,094 million in 2025. The rate of increase in accounts payable has, at times, exceeded the rate of revenue growth, contributing to the declining payables turnover ratio. For example, the increase from 2022 to 2023 was more substantial for accounts payable than for revenues.
The observed trend warrants further investigation. A declining payables turnover ratio could indicate improved supplier relationships through extended payment terms, or it could signal potential liquidity concerns or inefficient working capital management. Further analysis, including comparison to industry peers, is recommended to determine the underlying cause and potential impact.
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Working Capital Turnover
Booking Holdings Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 22,264) | 20,491) | 17,034) | 15,798) | 13,145) | |
| Less: Current liabilities | 16,698) | 15,647) | 13,330) | 8,474) | 6,246) | |
| Working capital | 5,566) | 4,844) | 3,704) | 7,324) | 6,899) | |
| Revenues | 26,917) | 23,739) | 21,365) | 17,090) | 10,958) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 4.84 | 4.90 | 5.77 | 2.33 | 1.59 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Airbnb Inc. | 2.38 | 1.58 | 1.51 | 1.22 | 0.99 | |
| Chipotle Mexican Grill Inc. | 42.77 | 18.49 | 16.73 | 34.00 | 14.86 | |
| DoorDash, Inc. | 5.50 | 3.64 | 3.95 | 3.03 | 1.74 | |
| McDonald’s Corp. | — | 13.25 | 8.64 | 5.39 | 3.13 | |
| Starbucks Corp. | — | — | — | — | 18.11 | |
| Working Capital Turnover, Sector | ||||||
| Consumer Services | 10.67 | 7.38 | 7.88 | 5.07 | 3.25 | |
| Working Capital Turnover, Industry | ||||||
| Consumer Discretionary | 15.59 | 13.31 | 14.75 | 18.11 | 10.77 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Working capital turnover = Revenues ÷ Working capital
= 26,917 ÷ 5,566 = 4.84
2 Click competitor name to see calculations.
The working capital turnover ratio exhibited a notable increasing trend from 2021 to 2023, followed by a stabilization in subsequent years. This indicates a changing efficiency in how the company utilizes its working capital to generate revenue.
- Working Capital
- Working capital decreased significantly from 2021 to 2023, falling from US$6,899 million to US$3,704 million. It then experienced moderate increases in 2024 and 2025, reaching US$5,566 million. This suggests a period of working capital reduction followed by reinvestment or stabilization.
- Revenues
- Revenues demonstrated consistent growth throughout the analyzed period. Starting at US$10,958 million in 2021, revenues increased to US$26,917 million in 2025. This growth is a key driver of the observed changes in the working capital turnover ratio.
- Working Capital Turnover
- The working capital turnover ratio increased from 1.59 in 2021 to 2.33 in 2022, indicating improved efficiency in utilizing working capital. A substantial increase was then observed in 2023, with the ratio reaching 5.77. This suggests a significant improvement in the generation of revenue per dollar of working capital. The ratio then decreased slightly to 4.90 in 2024 and remained relatively stable at 4.84 in 2025. While still considerably higher than the 2021 and 2022 levels, the stabilization suggests that the initial gains in efficiency may be reaching a plateau.
The combined trends suggest that the company initially improved its working capital management alongside revenue growth. The substantial increase in the turnover ratio in 2023 likely reflects a combination of reduced working capital and continued revenue expansion. The subsequent stabilization of the ratio indicates that while working capital is being used efficiently, further significant improvements in turnover may be more challenging to achieve without further substantial changes to either revenue or working capital levels.
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Average Receivable Collection Period
Booking Holdings Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 7.05 | 7.42 | 6.57 | 7.67 | 8.07 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 52 | 49 | 56 | 48 | 45 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Airbnb Inc. | 6 | 5 | 8 | 7 | 7 | |
| Chipotle Mexican Grill Inc. | 5 | 5 | 4 | 5 | 5 | |
| DoorDash, Inc. | 29 | 25 | 23 | 22 | 26 | |
| McDonald’s Corp. | 93 | 89 | 93 | 88 | 70 | |
| Starbucks Corp. | 13 | 12 | 12 | 13 | 12 | |
| Average Receivable Collection Period, Sector | ||||||
| Consumer Services | 29 | 28 | 30 | 28 | 25 | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Discretionary | 21 | 20 | 20 | 20 | 17 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.05 = 52
2 Click competitor name to see calculations.
An examination of the short-term activity ratios reveals a fluctuating pattern in the average receivable collection period between 2021 and 2025. While receivables turnover also exhibits variability, the collection period provides a more direct insight into the efficiency of collecting outstanding receivables.
- Average Receivable Collection Period
- The average receivable collection period increased from 45 days in 2021 to 48 days in 2022, indicating a slight lengthening in the time required to collect receivables. This trend continued into 2023, with the collection period reaching 56 days, representing the longest period observed within the analyzed timeframe. A subsequent decrease was noted in 2024, falling to 49 days. The period then increased slightly again in 2025, settling at 52 days. Overall, the collection period demonstrates an upward trend, albeit with some annual fluctuation.
The increase in the average collection period from 2021 to 2023 suggests a potential slowdown in the company’s ability to convert receivables into cash. This could be attributable to changes in credit policies, customer payment behavior, or collection efforts. The decrease observed in 2024 may indicate successful implementation of strategies to improve collection efficiency, but the slight increase in 2025 warrants continued monitoring.
- Receivables Turnover
- The receivables turnover ratio generally mirrors the trend in the collection period. It decreased from 8.07 in 2021 to 6.57 in 2023, then increased to 7.42 in 2024 before decreasing slightly to 7.05 in 2025. A lower turnover ratio aligns with a longer collection period, as it indicates receivables are being collected less frequently throughout the year. The fluctuations in receivables turnover corroborate the observed changes in the average collection period.
Continued monitoring of these ratios is recommended to identify any sustained changes in collection efficiency and to assess the effectiveness of credit and collection policies. Further investigation into the underlying causes of the observed trends may be beneficial.
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Average Payables Payment Period
Booking Holdings Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 5.28 | 6.21 | 6.14 | 6.82 | 6.91 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 69 | 59 | 59 | 54 | 53 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Airbnb Inc. | 41 | 28 | 30 | 33 | 37 | |
| Chipotle Mexican Grill Inc. | 9 | 9 | 10 | 10 | 10 | |
| DoorDash, Inc. | 22 | 21 | 17 | 16 | 25 | |
| McDonald’s Corp. | 51 | 45 | 49 | 48 | 46 | |
| Starbucks Corp. | 24 | 22 | 22 | 22 | 21 | |
| Average Payables Payment Period, Sector | ||||||
| Consumer Services | 40 | 35 | 35 | 33 | 32 | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Discretionary | 75 | 68 | 70 | 76 | 78 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.28 = 69
2 Click competitor name to see calculations.
An examination of the short-term activity ratios reveals a consistent lengthening of the average payables payment period over the five-year period. This is reflected in a concurrent decline in the payables turnover ratio.
- Payables Turnover
- The payables turnover ratio decreased from 6.91 in 2021 to 5.28 in 2025. The rate of decline was relatively consistent between 2021 and 2023, decreasing from 6.91 to 6.14. The decrease slowed slightly between 2023 and 2024, moving to 6.21, but accelerated again in 2025, reaching 5.28. This indicates the company is taking longer to pay its suppliers.
- Average Payables Payment Period
- The average payables payment period increased steadily from 53 days in 2021 to 69 days in 2025. The increase was incremental, moving from 53 to 54 days between 2021 and 2022, then to 59 days by 2023. The period remained at 59 days in 2024 before increasing to 69 days in 2025. This suggests a deliberate or evolving strategy regarding supplier payment terms, or potentially, increasing difficulty in meeting payment obligations.
The observed trends suggest the company is either negotiating longer payment terms with its suppliers, or experiencing a slowdown in payments. Further investigation would be required to determine the underlying cause of these changes and assess any potential implications for supplier relationships or liquidity.
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