Expedia Group Inc. (EXPE)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 246,000 | 245,000 | 246,000 | 246,000 | 245,000 | 244,000 | 245,000 | 257,000 | 277,000 | 301,000 | 324,000 | 334,000 | 351,000 | 369,000 | 396,000 | 408,000 | 360,000 | 311,000 | 238,000 | 182,000 |
| Interest coverage | 5.43 | 5.51 | 4.93 | 5.22 | 5.60 | 5.69 | 6.21 | 3.68 | 2.97 | 3.74 | 2.82 | 2.49 | 0.88 | -1.68 | -3.21 | -4.88 | -7.43 | -6.81 | -5.94 | -1.59 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,337,000K ÷ $246,000K
= 5.43
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses.
Expedia Group Inc.'s interest coverage ratio was negative from March 31, 2020, to December 31, 2021, indicating that the company did not generate enough operating income to cover its interest expenses during that period. This suggests a higher risk of default on debt obligations.
However, starting from March 31, 2022, the interest coverage ratio turned positive, with values ranging between 0.88 and 6.21 in the subsequent quarters up to June 30, 2024. This improvement in the interest coverage ratio indicates that Expedia Group Inc. has been able to generate sufficient operating income to cover its interest expenses during this period, signaling a better ability to service its debt.
Overall, the trend in Expedia Group Inc.'s interest coverage ratio shows a significant improvement over the quarters, transitioning from negative values to positive values, which is a positive indicator of the company's improving financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024