Expedia Group Inc. (EXPE)

Debt-to-equity ratio

		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
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
Debt-to-equity ratio		4.08	0.00	0.00	0.00	2.73	2.75	3.52	3.71	3.75	4.81	0.00	0.00	5.44	5.01	3.98	1.84	1.06	1.00	0.86	0.91

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,253,000K ÷ $1,534,000K
= 4.08

The debt-to-equity ratio of Expedia Group Inc has been fluctuating over the past eight quarters. The ratio increased from 2.73 in Q4 2022 to 4.08 in Q4 2023, indicating a higher level of debt relative to equity at the end of the period. This suggests that the company's financial leverage has increased significantly.

While a higher debt-to-equity ratio can potentially indicate greater financial risk, it is important to consider the industry norms and the company's overall financial health. A consistently high ratio may signal that the company relies heavily on debt financing, which could lead to liquidity issues or constraints in the future.

On the other hand, a decreasing trend from Q1 2023 to Q4 2022 indicates a slight improvement in the company's capital structure, moving towards a more balanced mix of debt and equity. It is essential for investors and stakeholders to monitor these fluctuations closely to assess the company's ability to manage its debt levels effectively and sustain long-term growth.