Booking Holdings

Booking Holdings’ balance sheet and cash flow metrics are exceptionally strong. It generates huge cash flows – FY 2024 free cash flow was $7.9B (13% YoY)) – yet it keeps very modest leverage. At end-2024 it had $16.2B in cash and equivalents versus ~$16.6B of total debt), effectively giving it a net-cash position.

Interest rates on its debt are low (most bonds from 0.5 to 4.75%), so debt-service costs are minimal. Such a liquid balance sheet means Booking easily sustains operations and can invest even in severe downturns. For example, it confidently weathered the pandemic by drawing on reserves and still funded its buybacks.

We consider financial strength to be a key positive: very low leverage, high credit ratings, and consistent cash-generation mean the company can endure crises or fund strategic initiatives. (In short, risk of bankruptcy or funding shortages is negligible.).