Expedia Group Inc. (EXPE)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,319,000 | 1,372,000 | 824,000 | 310,000 | -2,675,000 |
| Long-term debt | US$ in thousands | 5,223,000 | 6,253,000 | 6,240,000 | 7,715,000 | 8,216,000 |
| Total stockholders’ equity | US$ in thousands | 1,557,000 | 1,534,000 | 2,283,000 | 2,057,000 | 1,510,000 |
| Return on total capital | 19.45% | 17.62% | 9.67% | 3.17% | -27.50% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,319,000K ÷ ($5,223,000K + $1,557,000K)
= 19.45%
Expedia Group Inc.'s return on total capital has shown significant improvement over the past few years. From a negative figure of -27.50% as of December 31, 2020, the company has managed to turn things around and achieve a positive return on total capital of 3.17% by the end of 2021. This positive trend continued with further improvements to 9.67% by December 31, 2022, 17.62% by December 31, 2023, and reaching 19.45% by the end of 2024.
This steady increase in return on total capital indicates that Expedia Group Inc. has been effectively utilizing its capital to generate returns for its stakeholders. The company's ability to generate higher returns on the total capital employed demonstrates improved operational efficiency, profitability, and potentially better strategic decision-making.
Overall, the positive trajectory of Expedia Group Inc.'s return on total capital reflects the company's efforts in optimizing its capital structure and maximizing returns for its investors. It suggests that the company is moving in the right direction towards achieving sustainable growth and enhancing shareholder value.
Peer comparison
Dec 31, 2024