Expedia Group Inc. (EXPE)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.72 | 0.78 | 0.82 | 0.87 | 1.04 |
| Quick ratio | 0.57 | 0.60 | 0.58 | 0.60 | 0.78 |
| Cash ratio | 0.33 | 0.36 | 0.38 | 0.46 | 0.63 |
Expedia Group Inc.'s liquidity ratios reflect a decline over the years, indicating potential challenges in meeting its short-term obligations. The current ratio decreased from 1.04 in December 31, 2020, to 0.72 in December 31, 2024. This suggests a decreasing ability to cover current liabilities with current assets.
Similarly, the quick ratio also decreased from 0.78 in December 31, 2020, to 0.57 in December 31, 2024. This indicates a decline in Expedia's ability to cover immediate liabilities without relying on inventory.
Furthermore, the cash ratio also declined from 0.63 in December 31, 2020, to 0.33 in December 31, 2024. This ratio suggests a reduction in Expedia's ability to cover current liabilities solely with its cash and cash equivalents.
Overall, the declining trend in Expedia Group Inc.'s liquidity ratios raises concerns about its short-term financial health and ability to meet obligations as they come due. Investors and stakeholders may closely monitor these trends to assess the company's liquidity risk and management strategies.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 46.94 | 52.99 | 102.25 | 114.41 | 76.51 |
The cash conversion cycle (CCC) for Expedia Group Inc. has shown fluctuations over the years based on the provided data. As of December 31, 2020, the company's CCC stood at 76.51 days, indicating that it takes approximately 76.51 days for Expedia Group to convert its investments in inventory and other resources into cash flows from sales.
However, by December 31, 2021, the CCC had increased to 114.41 days, suggesting a longer period required by the company to convert its resources into cash. This extension could indicate potential inefficiencies in managing inventory, collecting receivables, or paying its payables promptly.
Subsequently, as of December 31, 2022, the CCC decreased to 102.25 days, showing some improvement in the company's working capital management. Nevertheless, the metric continued to fluctuate, reaching a lower point of 52.99 days by December 31, 2023, which signifies a more efficient conversion of resources into cash.
The trend continued with a further decrease in the CCC to 46.94 days by December 31, 2024, indicating Expedia Group's enhanced ability to manage its working capital and convert its investments back into cash more swiftly. Overall, monitoring and managing the CCC closely can provide insights into the company's operational efficiency, liquidity position, and potential growth prospects.