Expedia Group Inc. (EXPE)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover	—	—	—	17.80	6.13	6.59	3.65	3.64	4.94	4.69	2.88	2.84	3.91	3.74	2.04	2.20	8.01	7.94	3.91	5.76
Receivables turnover	4.14	3.45	3.10	3.35	4.44	4.37	4.09	4.64	5.41	5.57	4.70	5.28	6.21	4.21	2.83	2.60	6.04	7.15	8.04	7.72
Payables turnover	9.03	7.21	6.44	7.27	8.18	8.37	8.49	8.95	9.16	7.36	6.73	7.87	9.62	7.72	6.65	7.68	12.46	11.05	9.88	5.45
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	58.76	21.75	6.18	8.32	—

The activity ratios of Expedia Group Inc. provide insights into the efficiency of the company in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. Expedia's inventory turnover has fluctuated over the years but has shown an improving trend from 2020 to 2024. The ratio increased significantly in March 2024, indicating that the company is selling its inventory at a much faster rate.

2. Receivables Turnover: This ratio reflects how efficiently a company is collecting its accounts receivable. Expedia's receivables turnover decreased from 2020 to 2023 but slightly improved in 2024. A higher turnover ratio indicates that the company is collecting its receivables more quickly.

3. Payables Turnover: The payables turnover ratio evaluates how efficiently a company pays its suppliers or vendors. Expedia's payables turnover ratio has shown some fluctuations but generally remained stable over the years. A higher turnover ratio suggests that the company is efficiently managing its payables.

4. Working Capital Turnover: This ratio assesses how effectively a company utilizes its working capital to generate sales revenue. Expedia's working capital turnover has varied significantly, with notable peaks in December 2020 and March 2021. However, data is unavailable for the subsequent periods, making it challenging to analyze the company's recent performance in this aspect.

Overall, these activity ratios indicate that Expedia Group Inc. has shown mixed performance in managing its operational assets and liabilities efficiently. The company should continue to monitor these ratios to ensure optimal management of resources and sustainable growth.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	—	—	—	20.50	59.51	55.42	100.13	100.22	73.85	77.84	126.93	128.32	93.46	97.53	179.29	165.92	45.58	45.95	93.46	63.39
Days of sales outstanding (DSO)	days	88.18	105.92	117.76	108.95	82.19	83.54	89.25	78.71	67.43	65.50	77.68	69.19	58.81	86.65	129.08	140.17	60.42	51.04	45.41	47.28
Number of days of payables	days	40.44	50.61	56.71	50.19	44.64	43.61	42.97	40.77	39.85	49.56	54.25	46.40	37.96	47.26	54.89	47.54	29.29	33.02	36.93	66.98

Activity ratios provide insight into how efficiently a company manages its assets and liabilities. In the case of Expedia Group Inc., we can analyze the following activity ratios:

1. Days of Inventory on Hand (DOH):
- Expedia's DOH fluctuated over the years, ranging from as low as 20.50 days to as high as 179.29 days. A lower DOH indicates efficient inventory management, while a higher DOH may suggest excess inventory or slower sales turnover. Expedia should monitor its inventory levels closely to avoid overstocking or stockouts.

2. Days of Sales Outstanding (DSO):
- Expedia's DSO ranged from 45.41 days to 117.76 days, showing variability in how quickly the company collects its receivables. A lower DSO is preferable as it signifies faster cash collection from customers. A rising DSO could indicate issues with credit policies or difficulties in collecting payments.

3. Number of Days of Payables:
- Expedia's payables days ranged from 29.29 days to 56.71 days, reflecting the average time it takes the company to pay its suppliers. A higher number of days of payables suggests the company is taking longer to settle its obligations, which could be positive for cash flow management if utilized strategically.

By analyzing these activity ratios over time, Expedia can gain valuable insights into its operational efficiency and make informed decisions to optimize its working capital management and overall financial performance.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Fixed asset turnover	5.58	5.50	5.46	5.42	5.33	5.27	5.25	5.29	5.19	5.28	4.95	4.45	3.84	2.95	2.30	1.63	2.20	2.95	3.87	5.03
Total asset turnover	0.60	0.56	0.50	0.51	0.58	0.55	0.47	0.48	0.53	0.52	0.43	0.39	0.39	0.30	0.22	0.17	0.27	0.34	0.41	0.57

Expedia Group Inc.'s long-term activity ratios reflect the efficiency of the company in managing its fixed and total assets to generate revenue over the years.

1. Fixed Asset Turnover: The trend in Expedia's fixed asset turnover ratio shows a consistent improvement from 5.03 in March 2020 to 5.58 in December 2024. This indicates that the company has been able to generate more revenue per dollar invested in fixed assets over time. The ratio peaked at 5.50 in September 2024, suggesting that Expedia's fixed assets are being utilized efficiently to drive sales.

2. Total Asset Turnover: Expedia's total asset turnover ratio has shown variability over the years, starting at 0.57 in March 2020 and reaching 0.60 by December 2024. The ratio dipped to its lowest point of 0.17 in March 2021 but gradually recovered and improved. This indicates that Expedia has been effective in utilizing its total assets to generate sales, with the ratio peaking at 0.60 in December 2024.

Overall, the improving trend in both fixed asset turnover and total asset turnover ratios demonstrates Expedia's ability to efficiently manage its assets to generate revenue, signaling operational effectiveness and potential for sustainable growth in the long term.