Expedia Group Inc. (EXPE)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,337,000 | 1,349,000 | 1,213,000 | 1,285,000 | 1,372,000 | 1,389,000 | 1,522,000 | 945,000 | 824,000 | 1,125,000 | 915,000 | 833,000 | 310,000 | -621,000 | -1,273,000 | -1,991,000 | -2,675,000 | -2,119,000 | -1,413,000 | -289,000 |
| Long-term debt | US$ in thousands | 5,223,000 | 5,221,000 | 5,218,000 | — | 6,253,000 | — | — | — | 6,240,000 | 6,237,000 | 6,727,000 | 7,719,000 | 7,715,000 | 7,712,000 | — | — | 8,216,000 | 8,176,000 | 6,903,000 | 4,180,000 |
| Total stockholders’ equity | US$ in thousands | 1,557,000 | 1,322,000 | 889,000 | 890,000 | 1,534,000 | 1,673,000 | 1,759,000 | 1,832,000 | 2,283,000 | 2,268,000 | 1,910,000 | 2,078,000 | 2,057,000 | 1,603,000 | 1,096,000 | 1,209,000 | 1,510,000 | 1,632,000 | 1,734,000 | 2,270,000 |
| Return on total capital | 19.72% | 20.62% | 19.86% | 144.38% | 17.62% | 83.02% | 86.53% | 51.58% | 9.67% | 13.23% | 10.59% | 8.50% | 3.17% | -6.67% | -116.15% | -164.68% | -27.50% | -21.60% | -16.36% | -4.48% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,337,000K ÷ ($5,223,000K + $1,557,000K)
= 19.72%
Expedia Group Inc.'s return on total capital has shown significant fluctuations over the past few years. The ratio was negative for several quarters, indicating that the company was not generating a sufficient return relative to the total capital employed in the business. However, starting from March 31, 2022, the return on total capital turned positive and demonstrated an increasing trend, reaching a peak of 144.38% by March 31, 2024. This indicates that the company was able to effectively utilize its total capital to generate returns for its investors during this period. The ratio did experience some fluctuations after reaching its peak, but it generally remained positive, indicating a favorable performance in capital utilization. It is important for stakeholders to monitor this ratio continuously to assess the company's efficiency in generating returns relative to the total capital invested.
Peer comparison
Dec 31, 2024