Expedia Group Inc. (EXPE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 4.94 | 3.91 | 8.01 | 2.78 |
| Receivables turnover | 4.42 | 5.35 | 6.20 | 6.06 | 4.58 |
| Payables turnover | 8.18 | 9.16 | 9.62 | 12.46 | 2.39 |
| Working capital turnover | — | — | — | 21.83 | — |
The activity ratios of Expedia Group Inc provide insights into the efficiency of its operations and management of its working capital.
1. Receivables Turnover:
- Expedia's receivables turnover has been decreasing over the past five years, from 6.37 in 2021 to 4.53 in 2023. This indicates that the company is collecting its accounts receivable at a slower rate in recent years.
2. Payables Turnover:
- The payables turnover ratio has also been decreasing, from 1.53 in 2020 to 0.50 in 2023. A decreasing trend in payables turnover may suggest that the company is taking longer to pay its suppliers, which could impact its relationships with vendors.
3. Working Capital Turnover:
- The working capital turnover ratio is not provided for all years, but it shows a significant increase from 22.80 in 2020. This indicates that Expedia has been generating revenue at a much higher rate relative to its working capital in recent years.
Overall, the decreasing trends in receivables and payables turnover ratios may raise concerns about the company's liquidity management and operational efficiency. Expedia Group Inc should monitor and manage its receivables and payables effectively to improve cash flow and optimize its working capital utilization.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 73.85 | 93.46 | 45.58 | 131.45 |
| Days of sales outstanding (DSO) | days | 82.50 | 68.25 | 58.90 | 60.21 | 79.68 |
| Number of days of payables | days | 44.64 | 39.85 | 37.96 | 29.29 | 152.88 |
Days of inventory on hand (DOH) provides insight into how efficiently Expedia Group manages its inventory. Unfortunately, the data for DOH is not available for the years presented, which limits our ability to analyze inventory management.
Days of sales outstanding (DSO) measures the average number of days it takes for Expedia Group to collect revenue after a sale. DSO has shown a fluctuating trend over the past five years, with a peak of 80.54 days in 2023 and a low of 57.27 days in 2021. The increase in DSO in 2023 compared to 2022 indicates that the company may be facing challenges in collecting its accounts receivable in a timely manner.
The number of days of payables measures how long it takes Expedia Group to pay its suppliers. The data shows that the number of days of payables has been significantly increasing over the years, reaching 723.50 days in 2023. This may suggest that the company is taking longer to pay its creditors, potentially impacting supplier relationships.
Overall, the activity ratios suggest some areas of concern in Expedia Group's working capital management. The company should focus on optimizing inventory levels, improving accounts receivable collection processes, and managing payables efficiently to enhance overall operational efficiency and financial health.
See also:
Expedia Group Inc. Short-term (Operating) Activity Ratios
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 5.31 | 5.13 | 3.83 | 2.21 | 5.41 |
| Total asset turnover | 0.58 | 0.53 | 0.39 | 0.27 | 0.55 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. Expedia Group Inc's fixed asset turnover has been fluctuating over the past five years, ranging from 2.30 to 5.44. This indicates that the company has been able to generate varying levels of revenue from its fixed assets during this period, with the highest efficiency observed in 2023.
On the other hand, the total asset turnover ratio reflects how well a company is using all its assets to generate sales. Expedia Group Inc's total asset turnover has also shown fluctuations, ranging from 0.28 to 0.59 over the same five-year period. The company seems to have improved its efficiency in utilizing total assets for revenue generation, with the ratio peaking in 2023.
Overall, Expedia Group Inc has shown varying levels of efficiency in utilizing both fixed and total assets to generate revenue over the past five years. It is essential for the company to continue monitoring and improving these ratios to ensure optimal asset utilization and profitability.