Expedia Group Inc. (EXPE)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,807,000 | 8,674,000 | 6,616,000 | 6,182,000 | 2,163,000 |
| Payables | US$ in thousands | 1,077,000 | 947,000 | 688,000 | 496,000 | 906,000 |
| Payables turnover | 8.18 | 9.16 | 9.62 | 12.46 | 2.39 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,807,000K ÷ $1,077,000K
= 8.18
Expedia Group Inc's payables turnover has shown a decreasing trend over the past five years, from 0.77 in 2019 to 0.50 in 2023. This indicates a declining efficiency in managing its accounts payable. In 2020, the payables turnover spiked to 1.53, suggesting a significant improvement in managing its payables that year. However, this improvement was not sustained, as the ratio decreased in the following years. A lower payables turnover may signify longer payment periods to suppliers, potential liquidity issues, or changes in the company's payment policies. Further investigation into Expedia's working capital management and supplier relationships may be warranted to address the declining trend in payables turnover.
Peer comparison
Dec 31, 2023