Expedia Group Inc. (EXPE)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,183,000 | 4,225,000 | 4,096,000 | 4,111,000 | 3,363,000 |
| Short-term investments | US$ in thousands | 300,000 | 28,000 | 48,000 | 200,000 | 24,000 |
| Receivables | US$ in thousands | 3,252,000 | 2,833,000 | 2,118,000 | 1,349,000 | 821,000 |
| Total current liabilities | US$ in thousands | 13,611,000 | 11,783,000 | 10,778,000 | 9,450,000 | 5,406,000 |
| Quick ratio | 0.57 | 0.60 | 0.58 | 0.60 | 0.78 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,183,000K
+ $300,000K
+ $3,252,000K)
÷ $13,611,000K
= 0.57
The quick ratio of Expedia Group Inc. has shown a declining trend over the past five years. As of December 31, 2020, the quick ratio stood at 0.78, indicating that the company had $0.78 in liquid assets available to cover each dollar of current liabilities. However, by December 31, 2024, the quick ratio had decreased to 0.57, signaling a potential tightening of liquidity.
A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations using only its most liquid assets. This downward trend in the quick ratio could raise concerns about Expedia Group's ability to cover its immediate financial obligations without relying on the sale of inventory or obtaining additional financing.
It would be advisable for stakeholders and investors to closely monitor Expedia Group's liquidity position and assess the effectiveness of its current asset management strategies to maintain a healthy balance between liquidity and profitability.
Peer comparison
Dec 31, 2024