Expedia Group Inc. (EXPE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.97% | 29.74% | 23.42% | 20.85% | -24.21% |
| Operating profit margin | 9.71% | 8.24% | 9.58% | 2.23% | -54.63% |
| Pretax margin | 11.42% | 8.99% | 4.83% | -0.49% | -60.98% |
| Net profit margin | 9.08% | 6.36% | 3.11% | 0.14% | -52.48% |
Expedia Group Inc.'s profitability ratios have shown a positive trend over the past few years. The gross profit margin has improved significantly from a negative 24.21% in 2020 to 30.97% in 2024, indicating that the company has been able to increase its profitability on sales after accounting for the cost of goods sold.
Similarly, the operating profit margin has also shown steady improvement, increasing from a negative 54.63% in 2020 to 9.71% in 2024. This implies that Expedia has been able to effectively manage its operating expenses and generate profit from its core business operations.
The pretax margin has also demonstrated a positive trend, moving from a negative 60.98% in 2020 to 11.42% in 2024. This suggests that the company has been able to enhance its profitability before accounting for taxes, reflecting improved operational efficiency and cost management.
Lastly, the net profit margin, which indicates the company's bottom-line profitability, has shown a significant improvement from a negative 52.48% in 2020 to 9.08% in 2024. This indicates that Expedia has been successful in turning a higher percentage of its revenue into net income, showcasing overall improved financial health and performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.89% | 4.77% | 5.03% | 0.86% | -14.55% |
| Return on assets (ROA) | 5.51% | 3.68% | 1.63% | 0.06% | -13.98% |
| Return on total capital | 19.45% | 17.62% | 9.67% | 3.17% | -27.50% |
| Return on equity (ROE) | 79.25% | 51.96% | 15.42% | 0.58% | -172.98% |
Expedia Group Inc.'s profitability ratios show a positive trend over the years based on the provided data. The Operating return on assets (Operating ROA) has improved consistently from -14.55% in 2020 to 5.89% in 2024. This indicates the company's ability to generate operating profits from its assets.
Similarly, the Return on assets (ROA) has shown steady improvement from -13.98% in 2020 to 5.51% in 2024, indicating enhanced efficiency in utilizing assets to generate profits.
The Return on total capital has also exhibited a positive trend, increasing from -27.50% in 2020 to 19.45% in 2024. This metric reflects the company's profitability in relation to the total capital employed, showcasing strong performance in utilizing capital effectively.
Furthermore, the Return on equity (ROE) has shown significant growth, from -172.98% in 2020 to 79.25% in 2024, indicating the company's ability to generate profit for its shareholders relative to the equity invested.
Overall, Expedia Group Inc.'s profitability ratios demonstrate an improving performance over the years, signaling enhanced efficiency and effectiveness in managing assets, capital, and equity to generate returns for the company and its shareholders.