Expedia Group Inc. (EXPE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 22,388,000 | 21,642,000 | 21,561,000 | 21,548,000 | 18,690,000 |
| Total stockholders’ equity | US$ in thousands | 1,557,000 | 1,534,000 | 2,283,000 | 2,057,000 | 1,510,000 |
| Financial leverage ratio | 14.38 | 14.11 | 9.44 | 10.48 | 12.38 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,388,000K ÷ $1,557,000K
= 14.38
The financial leverage ratio of Expedia Group Inc. has been fluctuating over the years, indicating changes in the company's capital structure and debt levels.
As of December 31, 2020, the financial leverage ratio stood at 12.38, suggesting that the company had a higher proportion of debt in its capital structure compared to equity.
By December 31, 2021, the ratio decreased to 10.48, indicating a reduction in the company's reliance on debt financing which may have improved its financial stability.
The financial leverage ratio further decreased to 9.44 by December 31, 2022, signaling a continued trend towards a more conservative capital structure with lower debt levels.
However, there was a significant increase in the financial leverage ratio to 14.11 by December 31, 2023, suggesting a potential increase in debt relative to equity, which could raise concerns about the company's financial risk.
By December 31, 2024, the ratio slightly increased to 14.38, indicating a persistent reliance on debt financing or a decrease in equity, which may necessitate further evaluation of the company's financial health and risk profile.
Overall, monitoring changes in Expedia Group Inc.'s financial leverage ratio is crucial to understanding how the company is balancing its debt and equity to support its operations and growth strategies.
Peer comparison
Dec 31, 2024