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BKNG (Booking Holdings) Operating Margin % : 39.77% (As of Sep. 2024)


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What is Booking Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Booking Holdings's Operating Income for the three months ended in Sep. 2024 was $3,179 Mil. Booking Holdings's Revenue for the three months ended in Sep. 2024 was $7,994 Mil. Therefore, Booking Holdings's Operating Margin % for the quarter that ended in Sep. 2024 was 39.77%.

Warning Sign:

Booking Holdings Inc operating margin has been in a 5-year decline. The average rate of decline per year is -2.9%.

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

BKNG' s Operating Margin % Range Over the Past 10 Years
Min: 8.53   Med: 35.41   Max: 36.77
Current: 28.38


BKNG's Operating Margin % is ranked better than
90.61% of 820 companies
in the Travel & Leisure industry
Industry Median: 8.1 vs BKNG: 28.38

Booking Holdings's 5-Year Average Operating Margin % Growth Rate was -2.90% per year.

Booking Holdings's Operating Income for the three months ended in Sep. 2024 was $3,179 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $6,435 Mil.


Booking Holdings Operating Margin % Historical Data

The historical data trend for Booking Holdings's Operating Margin % 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 Operating Margin % Chart

Booking Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.48 8.53 22.78 29.85 27.31

Booking Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Operating Margin % Get a 7-Day Free Trial 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 42.27 12.73 17.92 31.68 39.77

Competitive Comparison of Booking Holdings's Operating Margin %

For the Travel Services subindustry, Booking Holdings's Operating Margin %, along with its competitors' market caps and Operating Margin % 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's Operating Margin % Distribution in the Travel & Leisure Industry

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

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



Booking Holdings Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Booking Holdings's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=5835 / 21365
=27.31 %

Booking Holdings's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=3179 / 7994
=39.77 %

* 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.


Booking Holdings  (NAS:BKNG) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Booking Holdings Operating Margin % Related Terms

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


Booking Holdings Business Description

Address
800 Connecticut Avenue, Norwalk, CT, USA, 06854
Booking is the world's largest online travel agency by sales, offering booking and payment services for hotel and alternative accommodation rooms, airline tickets, rental cars, restaurant reservations, cruises, experiences, and other vacation packages. The company operates several 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
Paulo Pisano officer: Chief Human Resources Officer 800 CONNECTICUT AVENUE, NORWALK CT 06854
Susana D'emic officer: SVP, CAO & Controller C/O TIME INC., 225 LIBERTY STREET, NEW YORK NY 10281
Glenn D Fogel officer: Hd Worldwide Strat & Planning PRICELINE.COM INCORPORATED, 800 CONNECTICUT AVENUE, NORWALK CT 06854
Radakovich Lynn Vojvodich director C/O BOOKING HOLDINGS INC., 800 CONNECTICUT AVENUE, NORWALK CT 06854
David I Goulden officer: Chief Financial Officer 176 SOUTH STREET, HOPKINTON MA 01748
Nicholas Read director C/O BOOKING HOLDINGS INC., 800 CONNECTICUT AVENUE, NORWALK CT 06854
Larry Quinlan director 2225 LAWSON LANE, SANTA CLARA CA 95054
Mylod Robert J Jr officer: Vice Chairman
Sumit Singh director C/O CHEWY, INC., 7700 WEST SUNRISE BLVD, PLANTATION FL 33322
Peter J Millones officer: Executive VP, General Counsel
Jeffery H Boyd director C/O ASPEN GROVE CAPITAL, LLC, PO BOX 9389, AVON CO 81620
Dijk Bob Van director C/O BOOKING HOLDINGS INC., 800 CONNECTICUT AVENUE, NORWALK CT 06854
Gillian Tans officer: President & COO, Booking.com C/O THE PRICELINE GROUP INC., 800 CONNECTICUT AVENUE, NORWALK CT 06854
Vanessa Ames Wittman director C/O MARSH & MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Wei Hopeman director C/O BOOKING HOLDINGS INC., 800 CONNECTICUT AVENUE, NORWALK CT 06854