Expedia Group Inc. (EXPE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 24.13 | 4.94 | 3.91 | 8.01 |
| Receivables turnover | 4.18 | 4.42 | 5.35 | 6.20 | 6.06 |
| Payables turnover | 9.03 | 8.18 | 9.16 | 9.62 | 12.46 |
| Working capital turnover | — | — | — | — | 21.83 |
Expedia Group Inc.'s inventory turnover ratio has shown some fluctuation over the years, decreasing from 8.01 in 2020 to 3.91 in 2021, then gradually improving to 4.94 in 2022 and surging to 24.13 in 2023. However, there is a missing value for 2024. This trend indicates that the company has been managing its inventory more efficiently in recent years.
In terms of receivables turnover, Expedia Group Inc. demonstrates a fairly stable performance, with a slight decrease from 6.06 in 2020 to 4.18 in 2024. This indicates that the company is collecting its receivables at a relatively consistent pace over the years.
The payables turnover ratio for Expedia Group Inc. has shown a declining trend from 12.46 in 2020 to 9.03 in 2024, with a variation in between. A lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could impact its working capital management and relationships with vendors.
Lastly, the working capital turnover ratio was reported only for 2020, indicating a value of 21.83. This ratio could not be analyzed for the subsequent years due to missing data points. A higher working capital turnover ratio generally indicates more efficient utilization of working capital to generate sales revenue.
Overall, Expedia Group Inc. has shown mixed performance in its activity ratios, with improvements in inventory turnover, stability in receivables turnover, and a declining trend in payables turnover. The absence of data for the working capital turnover for the years following 2020 limits the comprehensive analysis of this metric's performance over time.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 15.13 | 73.85 | 93.46 | 45.58 |
| Days of sales outstanding (DSO) | days | 87.37 | 82.50 | 68.25 | 58.90 | 60.21 |
| Number of days of payables | days | 40.44 | 44.64 | 39.85 | 37.96 | 29.29 |
The activity ratios provide insights into Expedia Group Inc.'s efficiency in managing its operating cycle.
1. Days of Inventory on Hand (DOH):
- Expedia's DOH increased from 45.58 days in 2020 to 93.46 days in 2021, indicating that the company held inventory for a longer period in 2021.
- Subsequently, there was a decrease in DOH to 73.85 days in 2022 and further to 15.13 days in 2023, signaling improved inventory management efficiency.
- However, data for 2024 is not available.
2. Days of Sales Outstanding (DSO):
- The DSO for Expedia decreased from 60.21 days in 2020 to 58.90 days in 2021, showing that the company collected receivables slightly more efficiently in 2021.
- There was an increase in DSO to 68.25 days in 2022 and further to 82.50 days in 2023, suggesting a lengthening of the collection period.
- The data for 2024 reflects a DSO of 87.37 days, indicating a continued trend of slower collections.
3. Number of Days of Payables:
- Expedia's days of payables increased from 29.29 days in 2020 to 37.96 days in 2021, demonstrating that the company took longer to pay its suppliers in 2021.
- This trend continued with days of payables reaching 39.85 days in 2022, 44.64 days in 2023, and 40.44 days in 2024, suggesting a consistent delay in settling payables.
Overall, Expedia Group Inc. experienced fluctuations in its activity ratios over the years, with varying levels of efficiency in managing inventory, receivables, and payables. The company showed improvements in inventory management efficiency in 2022 and 2023 but faced challenges in collecting receivables and managing payables efficiently, as reflected in the increasing DSO and days of payables. Further analysis would be needed to understand the underlying reasons for these changes and their impact on the company's overall operational performance.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 5.63 | 5.31 | 5.13 | 3.83 | 2.21 |
| Total asset turnover | 0.61 | 0.58 | 0.53 | 0.39 | 0.27 |
The fixed asset turnover ratio of Expedia Group Inc. has shown a positive trend over the years, increasing from 2.21 in 2020 to 5.63 in 2024. This indicates that the company is generating more revenue relative to its investment in fixed assets, which is a positive sign of efficiency in asset utilization.
Similarly, the total asset turnover ratio has also exhibited an upward trajectory, rising from 0.27 in 2020 to 0.61 in 2024. This suggests that Expedia Group is generating more sales in relation to its total assets, reflecting improved efficiency in utilizing all assets to generate revenue.
Overall, the increasing trend in both the fixed asset turnover and total asset turnover ratios implies that Expedia Group Inc. has been successful in enhancing its operational efficiency and effectively utilizing its assets to drive sales growth over the years.