Asset Structure Analysis
Booking Holdings’ total assets were $24.3 billion and $25.4 billion at December 31, 2023 and December 31, 2022, respectively.
Intangible assets, net were $1.6 billion as of December 31, 2023, accounting for 6.6% of total assets.
Goodwill was $2.8 billion at December 31, 2023, consisting of 11.5% of total assets.
Total current assets were $17 billion as of December 31, 2023, making up 70% of total assets.
Among total current assets, cash and cash equivalents were $12.1 billion, and accounts receivable, net were $3.3 billion.
Liquidity and Solvency
Total current liabilities were $13.3 billion as of December 31, 2023.
The current ratio was 1.28 times for 2023.
Among total current liabilities, the amount of deferred merchant bookings was $3.25 billion, which dose not need to be repaid.
Actually, Booking Holdings’ liquidity is very good.
Total liabilities were $27 billion as of December 31, 2023.
The debt ratio was 111% for 2023.
Is Booking Holdings’ debt pressure high?
No, the company’s debt pressure is not high, because Booking Holdings’ cash flow is very strong.
Booking Holdings’ net cash provided by operating activities were $7.3 billion, $6.55 billion and $2.8billion in 2023, 2022 and 2021, respectively.
Profitability Analysis
Booking Holdings’ total revenues were $21.4 billion, $17.1 billion and $11 billion in 2023, 2022 and 2021, respectively.
In fiscal 2023, Booking Holdings had three reportable segments, including merchant revenues($10.94 billion), agency revenues($9.4 billion), and advertising and other revenues($1 billion).
The total revenues in 2023 were up 25.1% year on year.
The total revenues in 2022 were up 55.5% year on year.
Operating income was $5.8 billion, $5.1 billion and $2.5 billion in 2023, 2022 and 2021, respectively.
The operating profit margin was 27%, 29.8% and 22.7% in 2023, 2022 and 2021, respectively.
Net income was $4.3 billion, $3 billion and $1.17 billion in 2023, 2022 and 2021, respectively.
The net profit margin was 21%, 17.5% and 10.6% in 2023, 2022 and 2021, respectively.
Cash Flow Analysis
Booking Holdings’ net cash provided by operating activities were $7.3 billion, $6.55 billion and $2.8billion in 2023, 2022 and 2021, respectively.
Good news is that the amount of capital expenditures were minimal.
Additions to property and equipment were $345 million, $368 million and $304 million in 2023, 2022 and 2021, respectively.
Booking Holdings’ free cash flow was $6.96 billion, $6.18 billion and $2.5 billion in 2023, 2022 and 2021, respectively.
Payments for repurchases of common stock were $10.4 billion, $6.6 billion and $163 million in 2023, 2022 and 2021, respectively.
As you can see, Booking Holding returned capital to shareholders in repurchasing stock.
Booking Holdings’ operating performance for Q1 2024
Booking Holdings’ total revenues were $4.4 billion and $3.8 billion in Q1 2024 and Q1 2023, respectively.
The total revenues in Q1 2024 were up 16.7% year on year.
Net income was $776 million and $266 million in Q1 2024 and Q1 2023, respectively.
Net cash provided by operating activities was $2.7 billion and $2.9 billion in Q1 2024 and Q1 2023, respectively.
Conclusion
We think that Booking Holdings is a great company with a good profit and strong cash flow.
We like Booking Holdings, because the company’s business model can get a lot of cash flow and the company is in growing industry.
We reckon that Booking Holdings’ reasonable valuation is about $90 billion, while Booking Holdings’ market capitalization is $132.87 billion, which is equivalents to $3916.21 per share.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
We derive substantially all of our revenues from providing online travel reservation services, which facilitate online travel purchases between travel service providers and travelers (which we generally refer to as “partners” and “consumers,” respectively). We also earn revenues from advertising services, restaurant reservations, and various other services, such as travel-related insurance and restaurant management services.(from Booking Holdings’ form 10k)
