Economic Value Added (EVA)
EVA is registered trademark of Stern Stewart.
Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.
Paying user area
Try for free
Expedia Group Inc. pages available for free this week:
- Statement of Comprehensive Income
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Expedia Group Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Economic Profit
Expedia Group Inc., economic profit calculation
US$ in millions
| 12 months ended: | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|---|
| Net operating profit after taxes (NOPAT)1 | ||||||
| Cost of capital2 | ||||||
| Invested capital3 | ||||||
| Economic profit4 | ||||||
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).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2021 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= – × =
The financial data reveals significant fluctuations in key performance indicators over the analyzed periods.
- Net Operating Profit After Taxes (NOPAT)
- There is a rising trend from 2017 through 2019, with NOPAT increasing from 1,026 million USD in 2017 to 1,922 million USD in 2019. However, a sharp reversal occurs in 2020, where NOPAT demonstrates a substantial loss of 5,503 million USD, before recovering to a positive 2,614 million USD in 2021. This volatility indicates a challenging year in 2020, potentially due to external market or operational disruptions, followed by a notable recovery.
- Cost of Capital
- The cost of capital remains relatively stable, fluctuating modestly between approximately 15.48% and 17.95% over the periods. The highest cost of capital is noted in 2018 at 17.95%, while the lowest occurs in 2020 at 15.48%. The marginal decrease in the cost of capital in 2020 could be linked to varying market conditions or changes in perceived risk during that period.
- Invested Capital
- Invested capital shows a gradual upward trend from 14,039 million USD in 2017 to 17,498 million USD in 2021, with a minor dip in 2020 to 15,765 million USD after peaking at 16,161 million USD in 2019. This steady increase suggests ongoing investment or asset accumulation despite the significant operational challenges indicated in 2020.
- Economic Profit
- Economic profit remains negative throughout the entire period, indicating that the returns do not exceed the cost of capital. The negative economic profit narrows from -1,338 million USD in 2017 to -788 million USD in 2019, signaling improved value creation. Nevertheless, it declines sharply to -7,943 million USD in 2020, consistent with the large operating losses in the same year. By 2021, the economic profit improves significantly to -331 million USD but remains below zero, highlighting ongoing challenges in achieving value beyond the cost of capital.
In summary, the data reflects strong performance until 2019, a severe setback in 2020 impacting profitability and economic value significantly, followed by a recovery phase in 2021. Despite rising invested capital and efforts to restore profitability, the persistent negative economic profit suggests that the company has yet to fully overcome the challenges experienced during the downturn.
Net Operating Profit after Taxes (NOPAT)
Expedia Group Inc., NOPAT calculation
US$ in millions
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).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in allowance for expected credit losses.
3 Addition of increase (decrease) in deferred merchant bookings and deferred revenue.
4 Addition of increase (decrease) in restructuring and related reorganization accrued liability.
5 Addition of increase (decrease) in equity equivalents to net income (loss) attributable to Expedia Group, Inc..
6 2021 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= × =
7 2021 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= × 21.00% =
8 Addition of after taxes interest expense to net income (loss) attributable to Expedia Group, Inc..
9 2021 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= × 21.00% =
10 Elimination of after taxes investment income.
The financial data reveals significant fluctuations in profitability over the analyzed periods.
- Net Income (Loss) Attributable to Expedia Group, Inc.
- The company experienced positive net income from 2017 through 2019, with values steadily increasing from 378 million USD in 2017 to 565 million USD in 2019. In 2020, there was a sharp and substantial loss of 2,612 million USD, indicating a major adverse impact on profitability. The net income slightly recovered in 2021, recording a marginal profit of 12 million USD, which suggests a fragile rebound but still far below pre-2020 levels.
- Net Operating Profit After Taxes (NOPAT)
- This metric exhibits a similar trend to net income, with continuous growth from 1,026 million USD in 2017 to 1,922 million USD in 2019. The year 2020 marked a deep negative NOPAT of 5,503 million USD, underscoring the operational difficulties faced during this period. In 2021, there was a notable improvement with NOPAT returning to a positive figure of 2,614 million USD, surpassing pre-pandemic levels, which may reflect operational recovery and enhanced efficiency or cost management.
Overall, the data illustrates strong growth in profitability through 2019, a severe downturn in 2020 presumably linked to extraordinary circumstances, followed by partial to full recovery across key profit measures in 2021. The divergence in magnitude of loss between net income and NOPAT in 2020 highlights the scale of operational and possibly non-operational challenges during that year.
Cash Operating Taxes
Expedia Group Inc., cash operating taxes calculation
US$ in millions
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).
The analysis of the provided financial data indicates noteworthy fluctuations in the income tax expense (benefit) and cash operating taxes over the observed five-year period.
- Income Tax Expense (Benefit)
- The income tax expense exhibits a rising trend from 2017 through 2019, increasing from 45 million USD to 203 million USD. However, this trend reverses strongly in 2020, with the figure turning negative to -423 million USD, indicating a tax benefit rather than an expense. In 2021, the amount remains negative but with a reduced benefit of -53 million USD. This significant shift in 2020 and 2021 reflects either substantial tax credits, loss carrybacks, or other tax relief measures impacting the income tax recorded.
- Cash Operating Taxes
- Cash operating taxes increase sharply from 212 million USD in 2017 to 427 million USD in 2018, followed by a decline to 323 million USD in 2019. The downward trend continues in 2020, dropping to 142 million USD, and then slightly recovers to 167 million USD in 2021. This pattern suggests a peak in cash outflows related to taxes in 2018, with subsequent moderation likely due to operational changes or tax planning strategies.
Overall, the data reveals contrasting movements between reported income tax expense and actual cash tax payments, especially notable in 2020 when the income tax expense turns into a substantial benefit while cash taxes paid decrease markedly. This divergence may indicate changes in accounting treatment or timing differences between tax expense recognition and cash tax payments.
Invested Capital
Expedia Group Inc., invested capital calculation (financing approach)
US$ in millions
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).
1 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of allowance for doubtful accounts receivable.
4 Addition of deferred merchant bookings and deferred revenue.
5 Addition of restructuring and related reorganization accrued liability.
6 Addition of equity equivalents to total Expedia Group, Inc. stockholders’ equity.
7 Removal of accumulated other comprehensive income.
8 Subtraction of projects in progress.
9 Subtraction of investments.
The presented financial data reveals several notable trends over the five-year period from 2017 to 2021.
- Total Reported Debt & Leases
- There is an overall increasing trend in total reported debt and leases, rising from $4,941 million in 2017 to $8,887 million by the end of 2021. Notably, the increase between 2019 ($5,589 million) and 2020 ($8,855 million) is substantial, indicating a significant rise in leverage during that period, which then stabilizes into 2021.
- Total Stockholders’ Equity
- Total stockholders' equity shows a declining trend over the same period. Starting at $4,522 million in 2017, it decreases somewhat gradually to $3,967 million in 2019, followed by a sharper decline to $2,532 million in 2020 and then further to $2,057 million in 2021. This decreasing equity trend suggests potential erosion of shareholder value or increased liabilities relative to assets.
- Invested Capital
- Invested capital remains relatively steady between 2017 and 2020, fluctuating mildly from $14,039 million in 2017 to $15,765 million in 2020. However, a noticeable increase occurs in 2021, reaching $17,498 million. This rise may reflect accumulated investments, retained earnings, or other capital inputs despite the reduction in equity.
In summary, the financial structure indicates rising debt levels alongside falling equity, which could imply increased financial risk or strategic leveraging. The increase in invested capital alongside these changes indicates ongoing commitments to assets or operations. These trends warrant further investigation into the underlying causes, such as capital expenditures, income performance, or financing activities, to comprehensively assess financial health and risk exposure.
Cost of Capital
Expedia Group Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Series A Preferred Stock | ÷ | = | × | = | |||||||||
| Long-term debt, including current maturities3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt, including current maturities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Series A Preferred Stock | ÷ | = | × | = | |||||||||
| Long-term debt, including current maturities3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2020-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt, including current maturities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Series A Preferred Stock | ÷ | = | × | = | |||||||||
| Long-term debt, including current maturities3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2019-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt, including current maturities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Series A Preferred Stock | ÷ | = | × | = | |||||||||
| Long-term debt, including current maturities3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2018-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt, including current maturities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Series A Preferred Stock | ÷ | = | × | = | |||||||||
| Long-term debt, including current maturities3 | ÷ | = | × | × (1 – 35.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 35.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2017-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt, including current maturities. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Expedia Group Inc., economic spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| Economic spread ratio3 | ||||||
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Amazon.com Inc. | ||||||
| Home Depot Inc. | ||||||
| Lowe’s Cos. Inc. | ||||||
| TJX Cos. Inc. | ||||||
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).
1 Economic profit. See details »
2 Invested capital. See details »
3 2021 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Economic Profit
- Over the five-year period, economic profit exhibited considerable fluctuations with a notable deterioration in 2020. Initially, economic profit was negative and showed a moderate improvement from -1,338 million US dollars in 2017 to -788 million US dollars in 2019. However, in 2020, there was a sharp decline to -7,943 million US dollars, indicating a significant increase in economic losses possibly due to extraordinary circumstances during that year. By 2021, economic profit improved substantially to -331 million US dollars, yet remained negative.
- Invested Capital
- Invested capital showed a consistent upward trend throughout the period. Starting at 14,039 million US dollars in 2017, it increased steadily each year, reaching 17,498 million US dollars by the end of 2021. This indicates ongoing investment or asset accumulation despite the fluctuations in profitability.
- Economic Spread Ratio
- The economic spread ratio, representing the return on invested capital relative to its cost, was negative throughout the period. It improved from -9.53% in 2017 to -4.88% in 2019, suggesting a narrowing gap between returns and costs initially. However, it declined drastically in 2020 to -50.38%, which aligns with the severe drop in economic profit that year. In 2021, the ratio rebounded closer to prior levels at -1.89%, reflecting an easing of adverse conditions but still indicating an inability to generate positive economic returns.
- Overall Analysis
- The data reveal that the company experienced ongoing economic losses every year, with the most severe setback occurring in 2020. Despite increasing invested capital, economic returns did not keep pace, as indicated by the persistent negative economic spread ratio. The sharp decline in 2020 economic profit and spread ratio suggests unusual operational or market challenges during that year, followed by a recovery phase in 2021. Although signs of improvement are visible, the company has not yet returned to positive economic profitability by the end of the observed period.
Economic Profit Margin
Expedia Group Inc., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred merchant bookings and deferred revenue | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| Economic profit margin2 | ||||||
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Amazon.com Inc. | ||||||
| Home Depot Inc. | ||||||
| Lowe’s Cos. Inc. | ||||||
| TJX Cos. Inc. | ||||||
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).
1 Economic profit. See details »
2 2021 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data over the specified periods reflects several notable trends in economic profit, adjusted revenue, and economic profit margin.
- Economic Profit
- The economic profit exhibited a fluctuating downward trend initially, starting at negative 1338 million US dollars and improving gradually to negative 788 million by the end of 2019. However, there was a sharp deterioration in 2020, where economic profit dropped significantly to negative 7943 million US dollars. This was followed by a substantial improvement in 2021, with economic profit recovering to negative 331 million US dollars, indicating a strong rebound though still remaining negative.
- Adjusted Revenue
- Adjusted revenue showed a generally positive trend up to 2019, increasing steadily from 10,705 million US dollars in 2017 to 13,376 million US dollars in 2019. There was a steep decline in revenue in 2020 to 2,478 million US dollars, which marks a significant contraction. In 2021, revenue recovered notably to 11,173 million US dollars, nearly returning to pre-2020 levels.
- Economic Profit Margin
- The economic profit margin mirrored the economic profit trend, beginning at negative 12.5% in 2017 and improving to negative 5.89% in 2019. In 2020, the margin plummeted dramatically to negative 320.54%, indicating an extreme downturn in profitability relative to revenue. This margin rebounded sharply in 2021 to negative 2.96%, reflecting a recovery towards improved economic efficiency, though profitability remained below breakeven.
Overall, the data suggests that 2020 was an exceptional year with significant financial distress, likely caused by extraordinary external factors. The subsequent year showed a marked recovery, with improving profitability ratios and revenue levels approaching prior performance. Despite the rebound, economic profit remained negative in 2021, signaling that further efforts are necessary to achieve positive economic profit margins.