Expedia Group Inc. (EXPE)

Liquidity 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
Current ratio 0.72 0.73 0.76 0.79 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
Quick ratio 0.57 0.59 0.59 0.61 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
Cash ratio 0.33 0.33 0.35 0.37 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

Expedia Group Inc.'s liquidity ratios, as indicated by the current ratio, quick ratio, and cash ratio, have shown fluctuations over the specified periods. The current ratio, which compares current assets to current liabilities, was below 1 for most quarters, indicating potential liquidity challenges. However, it improved slightly towards the end of the period but remained below the ideal ratio of 1.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. This ratio also fluctuated during the period, with values mostly below 1. This suggests that the company may have difficulty meeting its short-term obligations without relying on inventory liquidation.

The cash ratio, which reflects the company's ability to cover current liabilities with its most liquid assets, shows a declining trend over time. This may indicate a decreasing ability to meet short-term obligations using cash and cash equivalents alone.

Overall, the liquidity ratios for Expedia Group Inc. suggest a need for careful monitoring and management of liquidity levels to ensure the company can meet its short-term financial obligations effectively. Investors and stakeholders should continue to assess the company's liquidity position in light of these ratios.

See also:

Expedia Group Inc. Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days 47.74 55.31 61.04 79.26 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

The cash conversion cycle for Expedia Group Inc. fluctuated over the years, indicating varying efficiency in managing its working capital.

From March 31, 2020, to June 30, 2020, the cycle increased significantly from 43.69 days to 101.94 days, suggesting a delay in converting inventory into cash. This trend continued to worsen until March 31, 2021, where the cycle peaked at 258.55 days, indicating prolonged cash conversion processes.

However, Expedia Group Inc. managed to improve its cash conversion cycle from that point onward, with a notable decrease to 47.74 days by December 31, 2024. This improvement reflects better management of accounts receivable, accounts payable, and inventory turnover.

Overall, monitoring the cash conversion cycle is crucial for evaluating the company's operational efficiency and liquidity management. Expedia Group Inc. should aim to maintain a balance to ensure optimal cash flow and working capital utilization in the future.