Expedia Group Inc. (EXPE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.74% | 23.42% | 20.85% | -24.21% | 81.80% |
| Operating profit margin | 8.24% | 9.58% | 2.23% | -54.63% | 7.60% |
| Pretax margin | 8.99% | 4.83% | -0.49% | -60.98% | 6.46% |
| Net profit margin | 6.36% | 3.11% | 0.14% | -52.48% | 4.76% |
Expedia Group Inc's profitability ratios have shown fluctuations over the past five years. The company's gross profit margin has generally been high and increasing, indicating its ability to generate profits from its core operations. The trend suggests efficient cost management and pricing strategies.
However, when we look at the operating profit margin, we see that there was a significant improvement from 2020 to 2023, indicating better control over operating expenses and operational efficiency. The company has successfully increased its operating income as a percentage of revenue.
The pretax margin has also shown positive growth year over year, reflecting an improvement in the company's ability to generate profits before accounting for taxes. This suggests that the company is managing its expenses and investments more effectively.
The net profit margin, which reflects the company's bottom-line profitability after all expenses, has experienced significant variations. Despite some fluctuations, there is an overall positive trend, implying improved profitability and solid performance in recent years.
Overall, Expedia Group Inc's profitability ratios demonstrate a positive trajectory, indicating enhanced operational efficiency, cost control, and better financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.77% | 5.03% | 0.86% | -14.55% | 4.22% |
| Return on assets (ROA) | 3.68% | 1.63% | 0.06% | -13.98% | 2.64% |
| Return on total capital | 17.62% | 9.67% | 3.17% | -27.50% | 11.54% |
| Return on equity (ROE) | 51.96% | 15.42% | 0.58% | -172.98% | 14.24% |
Expedia Group Inc's profitability ratios show a mixed performance over the past five years.
Starting with Operating return on assets (Operating ROA), the company's performance improved steadily from 2019 to 2023, with a significant increase from -8.86% in 2020 to 6.82% in 2023. This suggests that the company has been able to generate better operating income relative to its assets in recent years.
In terms of Return on assets (ROA), Expedia Group Inc has shown a similar improving trend, moving from negative figures in 2020 and 2021 to positive values in 2022 and 2023. This indicates that the company has been more efficient in generating profits from its total assets.
When considering Return on total capital, the company's performance also exhibited a positive trend, with an increase from -15.41% in 2020 to 18.94% in 2023. This implies that Expedia Group has been able to generate higher returns on the total capital employed in its operations.
Lastly, looking at Return on equity (ROE), Expedia Group Inc experienced significant fluctuations in performance, including negative figures in 2021 and 2020. However, there was a notable improvement in 2023, with an ROE of 51.96%, indicating the company's ability to generate substantial returns for its equity shareholders.
Overall, the profitability ratios reflect a varying performance for Expedia Group Inc in recent years, with improvements in operating efficiency and profitability metrics, suggesting efforts to enhance operational performance and generate better returns for investors.