Expedia Group Inc. (EXPE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.22 | 0.20 | 0.00 | 0.29 | 0.00 | 0.00 | 0.00 | 0.29 | 0.29 | 0.27 | 0.31 | 0.36 | 0.35 | 0.00 | 0.00 | 0.44 | 0.42 | 0.32 | 0.20 |
| Debt-to-capital ratio | 0.77 | 0.80 | 0.85 | 0.00 | 0.80 | 0.00 | 0.00 | 0.00 | 0.73 | 0.73 | 0.78 | 0.79 | 0.79 | 0.83 | 0.00 | 0.00 | 0.84 | 0.83 | 0.80 | 0.65 |
| Debt-to-equity ratio | 3.35 | 3.95 | 5.87 | 0.00 | 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 |
| Financial leverage ratio | 14.38 | 17.70 | 29.13 | 27.82 | 14.11 | 13.46 | 14.60 | 13.64 | 9.44 | 9.65 | 12.95 | 11.83 | 10.48 | 13.69 | 22.06 | 18.09 | 12.38 | 12.06 | 12.63 | 8.99 |
Expedia Group Inc.'s solvency ratios provide insights into its ability to meet long-term financial obligations.
1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets financed by debt. Expedia's debt-to-assets ratio has fluctuated over the years, ranging from 0.00 to 0.44. A lower debt-to-assets ratio indicates a lower reliance on debt for financing operations.
2. Debt-to-capital ratio: This ratio reflects the proportion of the company's capital structure funded by debt. Expedia's debt-to-capital ratio varied between 0.00 and 0.85. A lower debt-to-capital ratio suggests a lower risk associated with debt obligations.
3. Debt-to-equity ratio: This ratio indicates the extent to which the company is using debt to finance its operations compared to equity. Expedia's debt-to-equity ratio ranged from 0.00 to 5.87. A lower debt-to-equity ratio implies a healthier balance between debt and equity financing.
4. Financial leverage ratio: This ratio measures the company's financial risk by evaluating the proportion of the company's assets that are financed by debt. Expedia's financial leverage ratio fluctuated between 8.99 and 29.13. A lower financial leverage ratio suggests a lower financial risk due to high debt levels.
Overall, Expedia Group Inc.'s solvency ratios demonstrate varying levels of leverage and debt dependency over time, highlighting the company's evolving financial risk profile and capital structure decisions.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a better ability to cover interest expenses from operating income.
Based on the provided data for Expedia Group Inc., the interest coverage ratio has shown a fluctuating trend over the analyzed periods. The company experienced negative interest coverage ratios from March 2020 to March 2022, indicating that its operating income was insufficient to cover its interest expenses during those periods. This could be a cause for concern as it suggests potential difficulties in meeting debt obligations.
However, from March 2022 onwards, the interest coverage ratio started to improve and turned positive. This positive trend continued through December 2024, reflecting an enhanced ability to cover interest expenses with operating income.
Overall, the recent positive trend in Expedia Group Inc.'s interest coverage ratio is a positive indicator of the company's improved financial health and greater capacity to service its debt through its earnings. It suggests a strengthening financial position and enhanced stability in meeting interest obligations.