BKNGNEUTRAL

Return on Equity (ROE)

-96.9%

Higher than 9% of Consumer Cyclical sector peers

Updated 1928h ago

Sector Performance

9th percentile

BKNG

-96.9%

Sector Median

8.5%

Sector Avg

-18.9%

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Deep Analysis

A Return on Equity (ROE) of -96.9% means Booking Holdings generated a net loss that wiped out nearly all of its shareholders' equity, indicating the company is losing money relative to the capital invested by shareholders.

This figure sits far below the Consumer Cyclical sector median of 8.7%, placing the company in the 11th percentile among its peers—one of the worst in the sector. Because only a single data point is provided, the year-over-year change, quarter-over-quarter change, and the trend over the last eight quarters are all listed as N/A, so no direction can be determined. The combination of an extremely negative ROE with no trend data leaves the investment risk elevated: the company is currently destroying shareholder value, but without a trend it is impossible to assess whether this is a temporary shock or a sustained pattern. This metric contradicts the overall NEUTRAL verdict, as a -96.9% ROE is a clear warning sign that would normally push toward a negative view, but the absence of historical context tempers any decisive conclusion.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about BKNG?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does BKNG's Return on Equity (ROE) compare to its sector?

BKNG's Return on Equity (ROE) of -96.9% compares to a Consumer Cyclical sector median of 8.5%, placing it in the 9th percentile.

Who are BKNG's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: PVH (3.3%), APTV (1.8%), DKNG (0.6%), LI (-2.5%), HMC (-3.8%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.