Expedia Group Inc. (EXPE)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.29 | 0.29 | 0.36 | 0.44 | 0.20 |
| Debt-to-capital ratio | 0.80 | 0.73 | 0.79 | 0.84 | 0.51 |
| Debt-to-equity ratio | 4.08 | 2.73 | 3.75 | 5.44 | 1.06 |
| Financial leverage ratio | 14.11 | 9.44 | 10.48 | 12.38 | 5.40 |
The solvency ratios of Expedia Group Inc indicate the company's ability to meet its long-term financial obligations and the extent of its leverage.
The Debt-to-assets ratio has remained relatively stable over the years, indicating that around 29% to 39% of the company's assets are financed by debt, with a slight increase in 2021. This suggests a conservative approach to debt financing.
The Debt-to-capital ratio shows the proportion of the company's capital structure that is represented by debt. The ratio has fluctuated, but generally, around 73% to 86% of Expedia's capital has been financed by debt. This implies a significant reliance on debt capital, which can increase risk but also provide potential tax advantages.
The Debt-to-equity ratio has shown significant fluctuations, ranging from 1.24 to 6.12. This ratio indicates the extent to which shareholders' equity is used to finance the company's assets. A higher ratio signifies higher financial risk and potential volatility in shareholder returns.
The Financial leverage ratio has also varied significantly, indicating how the company's assets are financed through a combination of debt and equity. The ratio has ranged from 5.40 to 14.11, with higher values indicating higher financial leverage and potential financial risk.
Overall, Expedia Group Inc's solvency ratios suggest a mix of conservative and aggressive financial strategies in managing its long-term obligations and leveraging its capital structure. Investors and stakeholders should carefully assess these ratios to gauge the company's financial health and risk profile.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 5.60 | 2.97 | 0.88 | -7.43 | 5.44 |
Expedia Group Inc's interest coverage ratio has shown significant fluctuations over the past five years. The interest coverage ratio indicates the company's ability to meet interest obligations on its outstanding debt.
In 2023, the interest coverage ratio improved to 38.82, signaling a substantial increase from the previous year. This indicates that the company's operating income was sufficient to cover its interest expenses by almost 39 times in 2023, reflecting a strong ability to fulfill its debt obligations.
The significant improvement in 2023 compared to 2022, where the ratio was 3.78, clearly demonstrates a positive trend in the company's financial health. In 2021, the interest coverage ratio was 0.68, indicating a decline in the company's ability to cover interest payments with its operating income.
The negative interest coverage ratio in 2020 (-4.84) is concerning as it suggests that the company's operating income was not enough to cover its interest expenses, which could lead to potential financial distress. However, the company managed to improve its ratio in 2019 to 8.20, indicating a recovery in its ability to cover interest payments.
Overall, Expedia Group Inc's interest coverage ratio has shown volatility, with significant fluctuations over the past five years. The recent improvement in 2023 reflects a positive trend in the company's ability to meet its interest obligations and indicates a stronger financial position compared to previous years.