Expedia Group Inc. (NASDAQ:EXPE)

The financial data reveals several notable trends across the analyzed periods.

Asset Turnover

The reported total asset turnover ratio displayed an initial increase from 0.54 in 2017 to 0.62 in 2018, followed by a decline to 0.56 in 2019 and a sharp drop to 0.28 in 2020. The ratio rebounded somewhat to 0.4 in 2021. The adjusted total asset turnover showed a similar pattern but with higher values, peaking at 0.66 in 2018, then decreasing significantly to 0.14 in 2020 before recovering to 0.54 in 2021. This suggests a substantial decline in asset efficiency in 2020, likely due to external factors impacting operations, with partial recovery later.

Liquidity Ratios

The reported current ratio was generally low but improved from 0.7 in 2017 to 1.04 in 2020, indicating enhanced short-term liquidity, before decreasing to 0.87 in 2021. The adjusted current ratio presented a stronger liquidity position throughout, growing from 1.29 in 2017 to a peak of 2.7 in 2020 and slightly dipping to 2.29 in 2021. The increase indicates better liquidity management and stronger capacity to meet short-term liabilities during this period.

Leverage Ratios

The reported debt to equity ratio remained relatively stable around 0.9-1.2 until 2019, but then surged dramatically to 3.24 in 2020 and 4.11 in 2021, indicating increased reliance on debt financing. The adjusted debt to equity ratio followed a similar trend but increased more moderately from about 0.5 to 1.28 in 2020 and then decreased to 1.01 in 2021. Both reported and adjusted debt to capital ratios showed an upward trend, signifying a growing proportion of debt in the capital structure, particularly heightened during 2020 and 2021.

Financial Leverage

The reported financial leverage ratio increased continuously from 4.09 in 2017 to 10.48 in 2021, highlighting a marked rise in the use of debt relative to equity. The adjusted financial leverage was lower but showed an increasing trend from 1.91 to 2.62 in 2020, with a slight reduction to 2.37 in 2021. This further confirms the growing leverage during the period but at a moderated level after adjusting.

Profitability Metrics

The reported net profit margin remained positive and relatively stable from 2017 to 2019, ranging between 3.62% and 4.68%, before sharply turning negative in 2020 at -50.24%, followed by a recovery to 0.14% in 2021. The adjusted net profit margin exhibited similar volatility but with higher values and deeper negativity in 2020 (-229.86%), rebounding strongly to 20.65% in 2021. Likewise, the reported return on equity increased steadily through 2019 but plunged to -103.16% in 2020 and only marginally recovered to 0.58% in 2021. The adjusted ROE displayed a similar pattern but with less severe drops and a stronger rebound to 26.25% by 2021. Return on assets also reflected this pattern with 2020 marking a large negative return before partial recovery. Overall, 2020 stands out as a year of significant operational and profitability distress, likely driven by extraordinary circumstances.

In summary, the data shows a period of improving asset efficiency and profitability up to 2019, followed by a severe downturn in 2020 evidenced by reduced turnover, negative profit margins, and returns. This was coupled with increased financial leverage and debt levels, indicating a greater reliance on debt financing possibly to manage the challenging environment. The year 2021 appears as a partial recovery phase, with improvements in asset turnover, liquidity, profitability metrics, and slight deleveraging on an adjusted basis, though reported leverage and debt remain elevated. These trends suggest the company experienced substantial disruption during 2020 but has taken steps toward stabilization thereafter.

The financial data reveals several notable trends over the five-year period ending in 2021. Revenue experienced a steady increase from 2017 through 2019, rising from approximately $10,060 million to $12,067 million. However, there was a sharp decline in 2020 to about $5,199 million, followed by a partial recovery in 2021 reaching $8,598 million. This significant drop in 2020 likely reflects an extraordinary event impacting business operations during that year.

Total assets showed some fluctuations but generally maintained an upward trajectory. Starting at roughly $18,516 million in 2017, total assets slightly decreased to $18,033 million in 2018, increased to $21,416 million in 2019, dipped again in 2020 to $18,690 million, and rose to $21,548 million by 2021. This pattern suggests strategic asset management, with adjustments perhaps aligned to operational needs and prevailing market conditions.

The reported total asset turnover ratio, which measures efficiency in generating revenue from assets, correspondingly fluctuated. It increased from 0.54 in 2017 to a peak of 0.62 in 2018, then declined to 0.56 in 2019. The ratio experienced a significant drop to 0.28 in 2020, mirroring the decline in revenue, and partially recovered to 0.40 in 2021. This indicates that asset utilization efficiency was adversely affected in 2020 but began to improve as operations stabilized.

When examining adjusted figures, the adjusted revenue also trended upward from 2017 to 2019, increasing from about $10,705 million to $13,376 million. However, adjusted revenue plummeted in 2020 to $2,478 million — a more severe decline compared to the reported revenue — and rebounded to $11,173 million in 2021. Adjusted total assets followed a similar pattern, slightly declining in 2018, increasing in 2019, decreasing again in 2020, and rising in 2021, albeit with smaller fluctuations compared to reported total assets.

The adjusted total asset turnover ratio exhibited a comparable trend: improving from 0.56 in 2017 to a peak of 0.66 in 2018, then decreasing steadily to 0.63 in 2019 and sharply to 0.14 in 2020, before a significant recovery to 0.54 in 2021. This pattern confirms the considerable impact on operational efficiency during 2020 and a strong rebound thereafter.

Overall, the data highlights a period of growth and improving efficiency from 2017 through 2019, followed by a pronounced disruption in 2020 with notable declines in revenue and asset turnover ratios. The subsequent recovery in 2021 reflects resilience and a positive adjustment to prior challenges, though revenue and turnover ratios had not fully returned to pre-2020 levels by the end of that year.

Key Observations:

1. Revenue and adjusted revenue both increased steadily until 2019, suffered significant declines in 2020, then partially recovered in 2021.

2. Total assets and adjusted total assets followed a relatively stable, slightly fluctuating upward trend with declines in 2018 and 2020 consistent with revenue disruptions.

3. Reported and adjusted total asset turnover ratios peaked around 2018, dropped sharply in 2020, and showed a strong recovery in 2021, indicating fluctuations in asset utilization efficiency closely linked to revenue changes.

The financial data reveals notable trends in both current assets and liabilities over the five-year period, indicating fluctuations in liquidity and overall financial stability.

Current Assets

Current assets demonstrated an overall increasing trend from 2017 to 2021, rising from $5,540 million to $8,181 million. However, these figures show some volatility, with a peak in 2019 at $7,735 million, followed by a significant decline in 2020 to $5,634 million, then a recovery in 2021.

Current Liabilities

Current liabilities fluctuated over the same period, initially increasing from $7,879 million in 2017 to $10,714 million in 2019, followed by a substantial decline to $5,406 million in 2020. In 2021, current liabilities increased again to $9,450 million. These movements suggest a considerable shift in short-term obligations across the years.

Reported Current Ratio

The reported current ratio, reflecting the company's ability to cover short-term liabilities with short-term assets, remained below 1.0 in all years except 2020 when it reached 1.04. This indicates tight liquidity conditions in most years, improving notably in 2020 but declining again in 2021 to 0.87.

Adjusted Current Assets and Liabilities

Adjusted figures for current assets and liabilities show a consistent increase in adjusted assets, rising from $5,570 million in 2017 to $8,246 million in 2021, similar to the trend in reported assets. Adjusted current liabilities, however, decreased overall, from $4,334 million in 2017 to $3,596 million in 2021, with a low point of $2,127 million in 2020.

Adjusted Current Ratio

The adjusted current ratio improved steadily over the years, beginning at 1.29 in 2017 and peaking at 2.7 in 2020 before slightly decreasing to 2.29 in 2021. These values indicate a stronger liquidity position under adjusted measurements compared to reported figures, suggesting that adjustments clarify a more favorable short-term financial health scenario.

In summary, the period under review shows variability in liquidity as presented in reported figures, with a generally weak position except for the year 2020. When considering adjusted values, the liquidity position appears significantly stronger and more stable, indicating possible adjustments for items that improve the perception of short-term financial resilience. The sharp movements in both assets and liabilities in 2020 likely reflect responses to exceptional external factors, with recovery trends apparent in the subsequent year.

The financial data reveals distinct trends in the debt and equity positions over the five-year period ending December 31, 2021.

Total Debt

Total debt decreased from 2017 to 2018, moving from 4,249 million US$ to 3,717 million US$. However, it increased significantly in subsequent years, reaching 8,216 million US$ in 2020 and slightly rising to 8,450 million US$ in 2021. This pattern suggests initial debt reduction followed by substantial borrowing or increased liabilities in the later years.

Total Stockholders’ Equity

Equity steadily declined from 4,522 million US$ in 2017 to 2,057 million US$ in 2021. The most notable drop occurred between 2019 and 2020, where equity decreased from 3,967 million US$ to 2,532 million US$. This continuing decline highlights a weakening equity base over the timeframe.

Reported Debt to Equity Ratio

The ratio remained relatively stable and below 1 until 2019, indicating a balanced or slightly lower debt load compared to equity. Starting in 2020, this ratio escalated sharply to 3.24 and then to 4.11 in 2021. This sharp increase reflects the combination of rising debt and decreasing equity, indicating increased financial leverage and potentially higher risk.

Adjusted Total Debt

Adjusted debt follows a pattern similar to reported total debt but with higher values each year. It decreased slightly from 4,941 million US$ in 2017 to 4,476 million US$ in 2018, then rose consistently to 8,855 million US$ in 2020 and marginally to 8,887 million US$ in 2021. The adjusted numbers reaffirm the trend of growing indebtedness.

Adjusted Total Stockholders’ Equity

Adjusted equity, unlike the reported equity, showed growth from 10,047 million US$ in 2017 to a peak of 11,520 million US$ in 2019, before falling sharply to 6,930 million US$ in 2020. There was a partial recovery in 2021 to 8,789 million US$. This adjusted equity data suggests that when certain adjustments are accounted for, the equity base was stronger up to 2019 but weakened notably afterward, albeit not as dramatically as reported equity.

Adjusted Debt to Equity Ratio

This ratio remained relatively low and stable from 2017 through 2019, fluctuating between 0.43 and 0.49. It spiked to 1.28 in 2020 but then decreased to 1.01 in 2021. This indicates that the adjusted leverage increased markedly during 2020 but improved somewhat in 2021, suggesting a partial reduction in adjusted financial risk compared to the reported figures.

Overall, the analysis points to a period of increasing indebtedness, especially pronounced after 2019, coupled with a weakening equity position. The differences between reported and adjusted figures indicate that certain adjustments might mitigate the perceived severity of the equity decline and leverage increase. Nevertheless, the financial position as of 2021 shows substantially higher leverage than at the beginning of the period, which could imply heightened financial risk and the need for careful management of debt and equity balances moving forward.

The analysis of the financial data over the five-year period reveals notable trends in the company's debt and capital structure metrics, indicating shifts in leverage and capital management.

Total Debt and Total Capital

Total debt demonstrated a fluctuating yet overall increasing trend, rising from 4,249 million US dollars in 2017 to 8,450 million US dollars in 2021. There was a decrease during 2018, but the debt increased significantly in 2019 and surged further in 2020 and 2021.

Total capital also reflected growth from 8,771 million US dollars in 2017 to a peak of 10,748 million US dollars in 2020, followed by a slight decline to 10,507 million US dollars in 2021.

Reported Debt to Capital Ratio

This ratio remained stable at 0.48 during 2017 and 2018 but then increased noticeably to 0.55 in 2019, and further sharply rose to 0.76 in 2020 and 0.80 in 2021. This indicates a rising leverage position when viewed through reported figures, suggesting an increasing proportion of debt relative to capital over time.

Adjusted Total Debt and Adjusted Total Capital

Adjusted total debt followed a pattern similar to reported total debt but at higher absolute levels, increasing from 4,941 million US dollars in 2017 to 8,887 million US dollars in 2021. The increase was consistent, with a significant jump between 2019 and 2020.

Adjusted total capital presented growth, climbing from 14,987 million US dollars in 2017 to 17,676 million US dollars in 2021. The growth was steady except for a slight decline observed in 2020 compared to 2019.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio was relatively stable around 0.30 to 0.33 from 2017 to 2019, indicating a moderate debt level relative to adjusted capital. However, this ratio increased materially to 0.56 in 2020 before slightly declining to 0.50 in 2021. This pattern suggests increased leverage when considering adjusted figures, peaking in 2020 with some reduction in the subsequent year.

Overall, both reported and adjusted metrics indicate that leverage increased significantly from 2019 to 2020, likely reflecting strategic decisions to assume more debt. The modest reduction in adjusted debt to capital in 2021 suggests initial efforts to rebalance the capital structure post-increase. The capital base, while generally increasing, shows some fluctuations which could be linked to operational or financing activities.

The financial data reveals several noteworthy trends over the five-year period under review. Total assets experienced fluctuations, starting at 18,516 million US dollars in 2017, slightly declining to 18,033 million in 2018, then rising significantly to 21,416 million in 2019. This was followed by a decrease to 18,690 million in 2020 and a recovery to 21,548 million by the end of 2021. This indicates a pattern of volatility in the asset base with a return to high levels in the most recent year.

Total stockholders' equity, as reported, shows a consistent decline over the period, dropping from 4,522 million US dollars in 2017 to 2,057 million in 2021. This downward trend suggests a reduction in the equity base that shareholders hold, potentially reflecting losses, dividends, or other equity adjustments.

Reported financial leverage increased steadily from 4.09 in 2017 to a peak of 10.48 in 2021. The rising leverage ratio indicates increased use of debt relative to equity, which can imply higher financial risk and potentially greater cost of capital. The sharp increase after 2019, especially in 2020 and 2021, suggests the company took on significantly more debt or had a reduced equity base.

Adjusted total assets display a similar pattern to the reported total assets, starting at 19,220 million in 2017, dipping to 18,757 million in 2018, rising again in 2019 to 21,312 million, then decreasing in 2020 to 18,132 million, and ending with an increase to 20,847 million in 2021. The adjustment factors appear to smooth some variations but maintain the overall pattern of fluctuation with a recent upward trend.

Adjusted total stockholders’ equity shows an initial rise from 10,047 million in 2017 to 11,520 million in 2019, followed by a substantial decline to 6,930 million in 2020, then a moderate recovery to 8,789 million in 2021. While this equity measurement suggests that the company improved its equity position until 2019, the drop in 2020 could be linked to extraordinary events affecting equity, with some recovery in the subsequent year.

Adjusted financial leverage remained relatively stable between 1.8 and 1.91 from 2017 to 2019, indicating a consistent balance between adjusted assets and equity. However, there was a noticeable increase to 2.62 in 2020, before declining somewhat to 2.37 in 2021. This suggests a temporary increase in leverage followed by a partial reversion toward pre-2020 levels, highlighting a more measured approach when considering adjusted figures.

Summary of Key Observations

Total assets and adjusted total assets reflect a pattern of volatility but show recovery to or above earlier levels by 2021.

Reported stockholders’ equity declines continually, indicating erosion of shareholder value or equity base, while adjusted equity increases initially before sharply declining and slightly recovering.

Reported financial leverage shows a marked increase, implying greater dependence on debt financing or reduced equity.

Adjusted financial leverage remains within a narrower range, spiking in 2020 but receding in 2021, indicating that after adjustment, the company’s leverage is less extreme but affected by the same trends.

The year 2020 emerges as a pivotal point across most metrics, showing declines or spikes likely linked to extraordinary operational or financial circumstances impacting assets, equity, and leverage.

Revenue

There was a steady increase in revenue from 2017 through 2019, rising from $10,060 million to $12,067 million. However, a significant decline occurred in 2020, dropping sharply to $5,199 million, likely influenced by adverse external factors such as the global pandemic. In 2021, revenue partially recovered to $8,598 million but remained below pre-2020 levels.

Net Income (Loss) Attributable

The net income showed an upward trend from 2017 ($378 million) to 2019 ($565 million). In 2020, the company faced a substantial loss of $2,612 million, reflecting a difficult operating environment. By 2021, net income improved drastically to a small profit of $12 million, indicating initial recovery efforts.

Reported Net Profit Margin

The profit margin followed a similar pattern to net income, maintaining modest positive margins from 2017 (3.76%) to 2019 (4.68%). A drastic decline occurred in 2020, with a negative margin of -50.24%, demonstrating severe profitability challenges. The margin marginally improved in 2021 to 0.14%, indicating a fragile return to profitability.

Adjusted Net Income (Loss)

Adjusted net income was consistently positive from 2017 ($1,143 million) through 2019 ($1,801 million). Similar to reported net income, it suffered a drastic downturn in 2020 resulting in a loss of $5,696 million. A strong rebound was observed in 2021, with adjusted net income increasing to $2,307 million, surpassing the pre-pandemic figures and signifying operational improvement when excluding specific items.

Adjusted Revenue

Adjusted revenue showed growth from 2017 ($10,705 million) to 2019 ($13,376 million), followed by a steep drop to $2,478 million in 2020. A sharp recovery came in 2021, with adjusted revenue reaching $11,173 million, demonstrating resilience and recovery in the core business over the year.

Adjusted Net Profit Margin

The adjusted net profit margin exhibited positive trends from 2017 (10.68%) to 2019 (13.46%). A severe negative margin (-229.86%) occurred in 2020, reflecting extraordinary challenges. The margin rebounded impressively in 2021 to 20.65%, exceeding previous years’ levels and indicating enhanced profitability once exceptional items are excluded.

The analysis of the annual financial data reveals several significant trends and fluctuations over the period from 2017 to 2021.

Net Income (Loss) Attributable to the Company

The net income showed growth from 2017 to 2019, increasing from $378 million to $565 million. However, 2020 experienced a sharp and substantial loss of $2,612 million, marking a significant decline, likely influenced by extraordinary events during that year. In 2021, the company returned to profitability, albeit marginally, with a net income of $12 million.

Total Stockholders’ Equity

Stockholders’ equity decreased consistently over the five-year period, from $4,522 million in 2017 to $2,057 million in 2021. The decline was particularly steep after 2019, reflecting the financial challenges faced by the company, especially in 2020.

Reported Return on Equity (ROE)

The reported ROE was positive and improved from 8.36% in 2017 to a peak of 14.24% in 2019. However, it turned drastically negative in 2020, reaching -103.16%, correlating with the net loss that year. The ROE recovered to a positive level of 0.58% in 2021, indicating a return to modest profitability relative to equity.

Adjusted Net Income (Loss)

Adjusted net income followed a similar pattern to reported net income but with higher figures. It grew from $1,143 million in 2017 to $1,801 million in 2019, then sharply declined to an adjusted loss of $5,696 million in 2020. In 2021, adjusted net income rebounded strongly to $2,307 million, surpassing all previous years in the dataset.

Adjusted Total Stockholders’ Equity

Adjusted equity increased from $10,047 million in 2017 to a high of $11,520 million in 2019 before dropping to $6,930 million in 2020. In 2021, it showed signs of recovery, rising to $8,789 million but still remaining below the pre-2020 peak.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE was relatively stable and positive from 2017 through 2019, peaking at 15.63%. It became significantly negative in 2020 at -82.19%, reflecting the large adjusted loss. A notable recovery occurred in 2021, with adjusted ROE climbing to 26.25%, indicating a higher efficiency in generating adjusted earnings from adjusted equity than in previous years.

In summary, the company demonstrated consistent growth and profitability through 2019, followed by a severe downturn in 2020, likely due to external economic or sector-specific shocks. The following year showed a recovery trend, with improved profitability metrics and equity levels, although not fully returning to pre-2020 levels in terms of equity values. Adjusted measures indicate a stronger rebound in underlying profitability than is apparent from reported figures alone.

Net Income (Loss) Attributable to Expedia Group, Inc.

The net income exhibited an overall increasing trend from 2017 to 2019, rising from 378 million USD to 565 million USD. However, in 2020, there was a significant decline, resulting in a substantial loss of 2,612 million USD. This was followed by a recovery in 2021, with net income returning to a positive value of 12 million USD, though still markedly lower compared to pre-2020 levels.

Total Assets

Total assets showed moderate fluctuations over the period. Starting at 18,516 million USD in 2017, assets slightly decreased in 2018 to 18,033 million USD, then increased notably to 21,416 million USD in 2019. In 2020, assets declined again to 18,690 million USD before rising to 21,548 million USD in 2021. Overall, assets ended the period slightly higher than at the start.

Reported Return on Assets (ROA)

The reported ROA increased gradually from 2.04% in 2017 to 2.64% in 2019, indicating improving profitability relative to assets during these years. In 2020, ROA dropped sharply to -13.98%, reflecting the significant net loss during that period. By 2021, ROA showed a marginal recovery to 0.06%, though it remained near break-even and substantially below pre-2020 levels.

Adjusted Net Income (Loss)

Adjusted net income followed a pattern similar to reported net income but with higher values, indicating adjustments for non-recurring or extraordinary items. It was relatively stable around 1,100 to 1,800 million USD from 2017 to 2019, then plummeted to a loss of 5,696 million USD in 2020. In 2021, a strong rebound to 2,307 million USD was observed, exceeding adjusted net income levels of prior years.

Adjusted Total Assets

The adjusted total assets showed a slight downward trend from 19,220 million USD in 2017 to 18,132 million USD in 2020, and then a recovery to 20,847 million USD in 2021. The fluctuations were less pronounced than in reported total assets, reflecting adjustments that possibly smooth asset valuation changes.

Adjusted Return on Assets (ROA)

Adjusted ROA improved steadily from 5.95% in 2017 to 8.45% in 2019, indicating strong operational profitability. In 2020, the adjusted ROA dropped drastically to -31.41%, highlighting severe losses relative to asset base. By 2021, adjusted ROA recovered significantly to 11.07%, surpassing pre-pandemic profitability levels and suggesting a robust operational turnaround.