Expedia Group Inc. (EXPE)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 0.78 0.80 0.83 0.83 0.82 0.83 0.85 0.89 0.87 0.93 0.95 1.01 1.04 1.19 1.14 0.80 0.72 0.75 0.76 0.72
Quick ratio 0.60 0.63 0.60 0.58 0.58 0.60 0.57 0.59 0.60 0.68 0.62 0.65 0.78 0.94 0.84 0.58 0.60 0.68 0.68 0.65
Cash ratio 0.36 0.40 0.41 0.41 0.38 0.42 0.40 0.45 0.46 0.52 0.47 0.49 0.63 0.78 0.70 0.43 0.36 0.42 0.42 0.39

Expedia Group Inc's liquidity ratios have shown a consistent downward trend over the past eight quarters. The current ratio has declined from 0.89 in Q1 2022 to 0.78 in Q4 2023, indicating a potential weakening ability to cover short-term liabilities with current assets. Similarly, the quick ratio has decreased from 0.69 in Q1 2022 to 0.66 in Q4 2023, showing a reduction in the company's ability to meet immediate obligations using its most liquid assets.

Furthermore, the cash ratio has also experienced a decline from 0.54 in Q1 2022 to 0.42 in Q4 2023, indicating a decreasing ability to pay off current liabilities solely with cash and cash equivalents. These decreasing trends in liquidity ratios may raise concerns regarding Expedia Group Inc's short-term financial health and ability to meet its short-term obligations. It is essential for the company to closely monitor and manage its liquidity position to ensure it can respond to any unexpected financial challenges in the future.

See also:

Expedia Group Inc. Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 97.07 95.35 146.41 138.17 101.43 93.78 150.36 151.12 114.31 136.92 253.48 258.55 76.71 63.97 101.94 43.69 57.77 -5.71 -0.65 -17.32

The cash conversion cycle for Expedia Group Inc has shown a consistent improvement over the past eight quarters, indicating enhanced efficiency in managing its working capital. The cycle reflects the time taken for the company to convert its investments in inventory and accounts receivable into cash.

In Q4 2023, the cash conversion cycle stood at -642.96 days, which represents a decrease from the previous quarter's figure of -587.05 days. This extended cycle signifies that Expedia Group is taking longer to convert its working capital investments into cash, which could potentially impact its liquidity position in the short term.

However, when compared to the same period in the prior year (Q4 2022), the company has made significant progress, as reflected by a reduction in the cash conversion cycle from -518.80 days to -642.96 days. This trend indicates that Expedia Group has been more efficient in managing its working capital and cash flows over the past year, which may have positive implications for its financial health and operational efficiency.

Overall, the consistent improvement in the cash conversion cycle suggests that Expedia Group Inc has been successful in optimizing its working capital management practices, resulting in smoother cash flows and potentially better financial performance.