Expedia Group Inc. (EXPE)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 941,000 | 859,000 | 909,000 | 686,000 |
| Long-term debt | US$ in thousands | 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 | 4,189,000 | 4,170,000 | 3,715,000 | 3,704,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 3,967,000 | 4,184,000 | 4,342,000 | 4,083,000 |
| Return on total capital | 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% | 11.54% | 10.28% | 11.28% | 8.81% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,372,000K ÷ ($6,253,000K + $1,534,000K)
= 17.62%
The return on total capital for Expedia Group Inc has shown a generally positive trend over the past eight quarters. In Q4 2022, the return on total capital was 9.63%, which improved consistently in the subsequent quarters to reach 18.94% in Q4 2023. This indicates an increasing efficiency in generating profits relative to the total capital employed by the company.
The return on total capital exceeded 10% in five out of the eight quarters, with particularly strong performances in Q4 2023, Q3 2023, Q2 2023, and Q1 2023, where the returns were above 15%. This suggests that Expedia Group Inc has been effectively utilizing its capital to generate returns for its stakeholders.
Overall, the improving trend in return on total capital indicates that Expedia Group Inc is effectively managing its capital investments and generating satisfactory returns on the overall capital employed in its operations.
Peer comparison
Dec 31, 2023