Expedia Group Inc. (EXPE)

The liquidity ratios of Expedia Group Inc show a varying trend over the past five years. The current ratio, which measures the company's ability to pay its short-term obligations with its current assets, has been decreasing from 2019 to 2023, indicating a potential deterioration in the company's short-term liquidity position. The current ratio dropped from 1.04 in 2020 to 0.78 in 2023.

Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also shows a decreasing trend over the five-year period. The quick ratio decreased from 0.90 in 2020 to 0.66 in 2023, further highlighting potential challenges in meeting short-term obligations without relying on inventory.

The cash ratio, which provides the most conservative measure of liquidity by comparing cash and cash equivalents to current liabilities, has been fluctuating over the years. The cash ratio increased from 0.41 in 2019 to 0.54 in 2021, before decreasing to 0.42 in 2023.

Overall, the declining trend in the current and quick ratios suggests that Expedia Group Inc may be facing challenges in maintaining a strong short-term liquidity position. The fluctuations in the cash ratio indicate that the company's ability to cover current liabilities solely with cash and cash equivalents has been inconsistent over the past five years. Further analysis and monitoring of the company's liquidity position and management of current assets may be necessary to ensure financial stability and meet its short-term obligations effectively.

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See also:

Expedia Group Inc. Liquidity Ratios

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Additional liquidity measure

The cash conversion cycle for Expedia Group Inc has exhibited fluctuations over the past five years. The company's cash conversion cycle has ranged from -642.96 days to -180.91 days during this period. A negative cash conversion cycle indicates that the company is able to generate cash from its operations before needing to pay its suppliers.

In 2023, the cash conversion cycle decreased significantly to -642.96 days from -518.80 days in 2022. This implies that the company was able to convert its inventory and accounts receivable into cash at a faster rate in 2023 compared to the previous year.

In 2021, the cash conversion cycle was -427.40 days, showing an improvement from -180.91 days in 2020. This indicates that the company managed its working capital more efficiently in 2021, leading to a shorter cash conversion cycle.

However, in 2019, the company experienced a higher cash conversion cycle of -398.59 days, suggesting that it took longer to convert its investments in inventory and accounts receivable into cash during that year.

Overall, Expedia Group Inc has shown fluctuations in its cash conversion cycle over the past five years. The company's ability to effectively manage its working capital and convert its assets into cash efficiently is crucial for its financial health and operational performance.