Expedia Group Inc. (EXPE)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	797,000	352,000	12,000	-2,612,000	565,000
Total stockholders’ equity	US$ in thousands	1,534,000	2,283,000	2,057,000	1,510,000	3,967,000
ROE		51.96%	15.42%	0.58%	-172.98%	14.24%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $797,000K ÷ $1,534,000K
= 51.96%

The return on equity (ROE) for Expedia Group Inc has exhibited significant fluctuations over the past five years. In 2023, the ROE improved notably to 51.96%, indicating that the company generated a strong return for its shareholders relative to the equity invested. This substantial increase in ROE from the previous year suggests improved performance and efficiency in utilizing shareholder equity.

In contrast, the ROE in 2022 stood at 15.42%, which, while positive, was lower than the most recent year. The positive ROE indicates that the company generated a profit using the shareholders' equity, albeit at a lower rate compared to 2023.

The negative ROE in 2021 and 2020 at -13.08% and -177.95%, respectively, indicates that the company incurred losses that exceeded the equity available to shareholders. These years reflect challenging financial performance and inefficient use of equity capital, resulting in a net loss for shareholders.

However, in 2019, the ROE rebounded to 14.24%, indicating a return to profitability and a more efficient use of equity. This positive ROE indicates that the company generated a profit and provided a return to shareholders for that year.

Overall, the trend in Expedia Group Inc's ROE indicates volatility and fluctuation in financial performance over the past five years, with significant improvements in 2023 compared to earlier years. The company's management may have implemented strategies to enhance profitability and efficiency, leading to the improved ROE in the most recent year.