Expedia Group Inc. (EXPE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.20 | 0.20 | 0.17 | 0.18 |
| Debt-to-capital ratio | 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 | 0.51 | 0.50 | 0.46 | 0.48 |
| 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 |
| Financial leverage ratio | 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 | 5.40 | 5.11 | 5.11 | 5.13 |
Expedia Group Inc's solvency ratios for Q4 2023 indicate the following trends:
1. Debt-to-assets ratio: The company's debt-to-assets ratio has been consistently hovering around 0.25 to 0.29 over the past eight quarters. This ratio indicates that roughly 25% to 29% of Expedia's total assets are financed by debt, remaining relatively stable.
2. Debt-to-capital ratio: Expedia's debt-to-capital ratio has shown a slight upward trend, increasing from 0.73 in Q4 2022 to 0.80 in Q4 2023. This suggests that a larger portion of the company's capital structure is funded by debt, reaching 80% in the most recent quarter.
3. Debt-to-equity ratio: The debt-to-equity ratio has also consistently increased over the eight quarters, indicating higher financial leverage. Expedia's ratio has risen from 2.73 in Q4 2022 to 4.08 in Q4 2023, suggesting that the company is relying more on debt financing in relation to equity.
4. Financial leverage ratio: Expedia's financial leverage ratio has fluctuated over the quarters, with a notable increase in Q4 2023 compared to the same period in the previous year. The ratio has risen from 9.44 in Q4 2022 to 14.11 in Q4 2023, indicating higher reliance on debt to support the company's operations.
Overall, the solvency ratios of Expedia Group Inc show a mixed trend, with increasing leverage ratios and a higher proportion of debt in the company's capital structure. Investors and analysts may monitor these ratios closely to assess Expedia's ability to meet its debt obligations and manage financial risks effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 5.44 | 5.34 | 5.41 | 3.81 |
Expedia Group Inc's interest coverage ratios have shown a positive trend over the quarters analyzed. The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
In Q1 2022, the interest coverage ratio was 1.37, suggesting that Expedia Group had minimal earnings to cover its interest expenses. However, there was a significant improvement in subsequent quarters, with the ratio increasing to 3.07 in Q2 2022, 4.55 in Q3 2022, and 3.78 in Q4 2022.
The trend continued to improve in 2023, with interest coverage ratios of 8.02 in Q1, 15.01 in Q2, 24.98 in Q3, and reaching a high of 38.82 in Q4. These increasing ratios indicate that Expedia Group's earnings have been sufficient to comfortably cover its interest expenses, reflecting a healthier financial position.
Overall, the upward trend in Expedia Group's interest coverage ratios demonstrates a strengthening ability to meet its interest obligations, which could be a positive signal for investors and creditors regarding the company's financial stability and capacity to service its debt.