Stock Analysis on Net
Stock Analysis on Net

Expedia Group Inc. (NASDAQ:EXPE)

This company has been moved to the archive! The financial data has not been updated since May 3, 2022.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Expedia Group Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
U.S. federal 17 (31) 76 186 13
State 7 — 20 42 6
Foreign 68 96 198 167 130
Current income tax expense 92 65 294 395 149
U.S. federal (137) (315) (53) (273) (94)
State (19) (65) (9) (25) (1)
Foreign 11 (108) (29) (10) (9)
Deferred income tax benefit (145) (488) (91) (308) (103)
Income tax expense (benefit) (53) (423) 203 87 45

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Current income tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Expedia Group Inc. current income tax expense decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Deferred income tax benefit Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Expedia Group Inc. deferred income tax benefit decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.
Income tax expense (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Expedia Group Inc. income tax expense (benefit) decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Effective Income Tax Rate (EITR)

Expedia Group Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
U.S. federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 35.00%
Effective income tax rate 139.47% 13.42% 26.19% 17.94% 10.89%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Expedia Group Inc. effective income tax rate decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Components of Deferred Tax Assets and Liabilities

Expedia Group Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Provision for accrued expenses 85 91 100 87 50
Deferred loyalty rewards 186 180 183 166 131
Net operating loss and tax credit carryforwards 939 654 100 123 122
Stock-based compensation 25 70 86 67 52
Property and equipment 19 54 102 55 —
Operating lease liabilities 96 135 136 — —
Long-term investments 106 — — — —
Other 62 172 72 68 47
Deferred tax assets 1,518 1,356 779 566 402
Valuation allowance (171) (216) (77) (80) (76)
Deferred tax assets, less valuation allowance 1,347 1,140 702 486 325
Goodwill and intangible assets (418) (422) (485) (486) (499)
Anticipatory foreign tax credits (113) — — — —
Operating lease ROU assets (93) (126) (128) — —
Property and equipment — — — — (131)
Other (15) — — — (6)
Deferred tax liabilities (639) (548) (613) (486) (636)
Net deferred tax assets (liabilities) 708 592 89 — (311)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Expedia Group Inc. deferred tax assets increased from 2019 to 2020 and from 2020 to 2021.
Deferred tax assets, less valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Expedia Group Inc. deferred tax assets, less valuation allowance increased from 2019 to 2020 and from 2020 to 2021.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Expedia Group Inc. net deferred tax assets (liabilities) increased from 2019 to 2020 and from 2020 to 2021.

Deferred Tax Assets and Liabilities, Classification

Expedia Group Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Deferred tax assets 766 659 145 69 18
Deferred tax liabilities 58 67 56 69 329

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Expedia Group Inc. deferred tax assets increased from 2019 to 2020 and from 2020 to 2021.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Expedia Group Inc. deferred tax liabilities increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Adjustments to Financial Statements: Removal of Deferred Taxes

Expedia Group Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 21,548 18,690 21,416 18,033 18,516
Less: Noncurrent deferred tax assets, net 766 659 145 69 18
Total assets (adjusted) 20,782 18,031 21,271 17,964 18,498
Adjustment to Total Liabilities
Total liabilities (as reported) 17,996 14,651 15,865 12,352 12,365
Less: Noncurrent deferred tax liabilities, net 58 67 56 69 329
Total liabilities (adjusted) 17,938 14,584 15,809 12,283 12,036
Adjustment to Total Expedia Group, Inc. Stockholders’ Equity
Total Expedia Group, Inc. stockholders’ equity (as reported) 2,057 2,532 3,967 4,104 4,522
Less: Net deferred tax assets (liabilities) 708 592 89 — (311)
Total Expedia Group, Inc. stockholders’ equity (adjusted) 1,349 1,940 3,878 4,104 4,833
Adjustment to Net Income (loss) Attributable To Expedia Group, Inc.
Net income (loss) attributable to Expedia Group, Inc. (as reported) 12 (2,612) 565 406 378
Add: Deferred income tax expense (benefit) (145) (488) (91) (308) (103)
Net income (loss) attributable to Expedia Group, Inc. (adjusted) (133) (3,100) 474 98 275

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Expedia Group Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Expedia Group Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 0.14% -50.24% 4.68% 3.62% 3.76%
Adjusted net profit margin -1.55% -59.63% 3.93% 0.87% 2.73%
Total Asset Turnover
Reported total asset turnover 0.40 0.28 0.56 0.62 0.54
Adjusted total asset turnover 0.41 0.29 0.57 0.62 0.54
Financial Leverage
Reported financial leverage 10.48 7.38 5.40 4.39 4.09
Adjusted financial leverage 15.41 9.29 5.49 4.38 3.83
Return on Equity (ROE)
Reported ROE 0.58% -103.16% 14.24% 9.89% 8.36%
Adjusted ROE -9.86% -159.79% 12.22% 2.39% 5.68%
Return on Assets (ROA)
Reported ROA 0.06% -13.98% 2.64% 2.25% 2.04%
Adjusted ROA -0.64% -17.19% 2.23% 0.55% 1.48%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Expedia Group Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Expedia Group Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Expedia Group Inc. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Expedia Group Inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Expedia Group Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Expedia Group Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Expedia Group, Inc. 12 (2,612) 565 406 378
Revenue 8,598 5,199 12,067 11,223 10,060
Profitability Ratio
Net profit margin1 0.14% -50.24% 4.68% 3.62% 3.76%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Expedia Group, Inc. (133) (3,100) 474 98 275
Revenue 8,598 5,199 12,067 11,223 10,060
Profitability Ratio
Adjusted net profit margin2 -1.55% -59.63% 3.93% 0.87% 2.73%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to Expedia Group, Inc. ÷ Revenue
= 100 × 12 ÷ 8,598 = 0.14%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Expedia Group, Inc. ÷ Revenue
= 100 × -133 ÷ 8,598 = -1.55%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Expedia Group Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Revenue 8,598 5,199 12,067 11,223 10,060
Total assets 21,548 18,690 21,416 18,033 18,516
Activity Ratio
Total asset turnover1 0.40 0.28 0.56 0.62 0.54
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue 8,598 5,199 12,067 11,223 10,060
Adjusted total assets 20,782 18,031 21,271 17,964 18,498
Activity Ratio
Adjusted total asset turnover2 0.41 0.29 0.57 0.62 0.54

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 8,598 ÷ 21,548 = 0.40

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 8,598 ÷ 20,782 = 0.41

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Expedia Group Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets 21,548 18,690 21,416 18,033 18,516
Total Expedia Group, Inc. stockholders’ equity 2,057 2,532 3,967 4,104 4,522
Solvency Ratio
Financial leverage1 10.48 7.38 5.40 4.39 4.09
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 20,782 18,031 21,271 17,964 18,498
Adjusted total Expedia Group, Inc. stockholders’ equity 1,349 1,940 3,878 4,104 4,833
Solvency Ratio
Adjusted financial leverage2 15.41 9.29 5.49 4.38 3.83

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Financial leverage = Total assets ÷ Total Expedia Group, Inc. stockholders’ equity
= 21,548 ÷ 2,057 = 10.48

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Expedia Group, Inc. stockholders’ equity
= 20,782 ÷ 1,349 = 15.41

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Expedia Group Inc. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Expedia Group, Inc. 12 (2,612) 565 406 378
Total Expedia Group, Inc. stockholders’ equity 2,057 2,532 3,967 4,104 4,522
Profitability Ratio
ROE1 0.58% -103.16% 14.24% 9.89% 8.36%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Expedia Group, Inc. (133) (3,100) 474 98 275
Adjusted total Expedia Group, Inc. stockholders’ equity 1,349 1,940 3,878 4,104 4,833
Profitability Ratio
Adjusted ROE2 -9.86% -159.79% 12.22% 2.39% 5.68%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROE = 100 × Net income (loss) attributable to Expedia Group, Inc. ÷ Total Expedia Group, Inc. stockholders’ equity
= 100 × 12 ÷ 2,057 = 0.58%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to Expedia Group, Inc. ÷ Adjusted total Expedia Group, Inc. stockholders’ equity
= 100 × -133 ÷ 1,349 = -9.86%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Expedia Group Inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Expedia Group, Inc. 12 (2,612) 565 406 378
Total assets 21,548 18,690 21,416 18,033 18,516
Profitability Ratio
ROA1 0.06% -13.98% 2.64% 2.25% 2.04%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Expedia Group, Inc. (133) (3,100) 474 98 275
Adjusted total assets 20,782 18,031 21,271 17,964 18,498
Profitability Ratio
Adjusted ROA2 -0.64% -17.19% 2.23% 0.55% 1.48%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROA = 100 × Net income (loss) attributable to Expedia Group, Inc. ÷ Total assets
= 100 × 12 ÷ 21,548 = 0.06%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to Expedia Group, Inc. ÷ Adjusted total assets
= 100 × -133 ÷ 20,782 = -0.64%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Expedia Group Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.