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Booking Holdings ROE %

: 81.86% (As of Jun. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Booking Holdings's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $3,428 Mil. Booking Holdings's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $4,188 Mil. Therefore, Booking Holdings's annualized ROE % for the quarter that ended in Jun. 2022 was 81.86%.

The historical rank and industry rank for Booking Holdings's ROE % or its related term are showing as below:

BKNG' s ROE % Range Over the Past 10 Years
Min: 1.09   Med: 30.34   Max: 66.11
Current: 31

During the past 13 years, Booking Holdings's highest ROE % was 66.11%. The lowest was 1.09%. And the median was 30.34%.

BKNG's ROE % is ranked better than
90.85% of 776 companies
in the Travel & Leisure industry
Industry Median: 0.31 vs BKNG: 31.00

Booking Holdings ROE % Historical Data

The historical data trend for Booking Holdings's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Booking Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.18 39.88 66.11 1.09 21.05

Booking Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -13.96 59.45 42.17 -53.08 81.86

Competitive Comparison

For the Travel Services subindustry, Booking Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Booking Holdings ROE % Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Booking Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Booking Holdings's ROE % falls into.



Booking Holdings ROE % Calculation

Booking Holdings's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=1165/( (4893+6178)/ 2 )
=1165/5535.5
=21.05 %

Booking Holdings's annualized ROE % for the quarter that ended in Jun. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2022 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Jun. 2022 ))/ count )
=3428/( (4373+4002)/ 2 )
=3428/4187.5
=81.86 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Booking Holdings  (NAS:BKNG) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=3428/4187.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(3428 / 17176)*(17176 / 23438.5)*(23438.5 / 4187.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=19.96 %*0.7328*5.5973
=ROA %*Equity Multiplier
=14.63 %*5.5973
=81.86 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=3428/4187.5
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (3428 / 4576) * (4576 / 4024) * (4024 / 17176) * (17176 / 23438.5) * (23438.5 / 4187.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7491 * 1.1372 * 23.43 % * 0.7328 * 5.5973
=81.86 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Booking Holdings ROE % Related Terms

Thank you for viewing the detailed overview of Booking Holdings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Booking Holdings Business Description

Booking Holdings logo
Address
800 Connecticut Avenue, Norwalk, CT, USA, 06854
Booking is the world's largest online travel agency by revenue, offering booking services for hotel and alternative accommodation rooms, airline tickets, rental cars, restaurant reservations, cruises, experiences, and other vacation packages. The company operates a number of branded travel booking sites, including Booking.com, Agoda, OpenTable, and Rentalcars.com, and has expanded into travel media with the acquisitions of Kayak and Momondo. Transaction fees for online bookings account for the bulk of revenue and profits.
Executives
Pisano Paulo officer: Chief Human Resources Officer 800 CONNECTICUT AVENUE NORWALK CT 06854
Van Dijk Bob director C/O BOOKING HOLDINGS INC. 800 CONNECTICUT AVENUE NORWALK CT 06854
Hopeman Wei director C/O BOOKING HOLDINGS INC. 800 CONNECTICUT AVENUE NORWALK CT 06854
Wittman Vanessa Ames director C/O MARSH & MCLENNAN COMPANIES, INC. 1166 AVENUE OF THE AMERICAS NEW YORK NY 10036
D'emic Susana officer: SVP, CAO & Controller C/O TIME INC. 225 LIBERTY STREET NEW YORK NY 10281
Graddick Weir Mirian M director 2000 GALLOPING HILL ROAD KENILWORTH NJ 07033
Read Nicholas director C/O BOOKING HOLDINGS INC. 800 CONNECTICUT AVENUE NORWALK CT 06854
Goulden David I officer: Chief Financial Officer 176 SOUTH STREET HOPKINTON MA 01748
Gavet Maelle officer: EVP, Global Operations C/O THE PRICELINE GROUP INC. 800 CONNECTICUT AVENUE NORWALK CT 06854
Vojvodich Lynn M director C/O THE PRICELINE GROUP INC. 800 CONNECTICUT AVENUE NORWALK CT 06854
Boyd Jeffery H director C/O ASPEN GROVE CAPITAL, LLC PO BOX 9389 AVON CO 81620
Noski Charles H director ONE PICKWICK PLAZA GREENWICH CT 06830
Tans Gillian officer: President & COO, Booking.com C/O THE PRICELINE GROUP INC. 800 CONNECTICUT AVENUE NORWALK CT 06854
Armstrong Timothy M director 770 BROADWAY 4TH FLOOR NEW YORK NY 10003
Rothman Thomas E director FOX FILMED ENTERTAINMENT 10201 WEST PICO BLVD LOS ANGELES CA 90035

Booking Holdings Headlines

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