Expedia Group Inc. (NASDAQ:EXPE)

Goodwill

The goodwill value shows a steady decline over the period, decreasing from $8,229 million in 2017 to $7,171 million in 2021. This suggests continual impairment or disposals affecting this asset category.

Intangible assets with indefinite lives

Intangible assets with indefinite lives also exhibit a gradual reduction, moving from $1,479 million in 2017 to $1,166 million in 2021. This downward trend indicates possible write-downs or revaluation declines over time.

Customer relationships

Customer relationships show a slight but consistent decrease from $665 million in 2017 to $565 million in 2021, reflecting possible amortization or attrition of this intangible asset type.

Supplier relationships

The supplier relationships value remains relatively stable, fluctuating modestly between $655 million and $626 million throughout the period, suggesting a steady valuation with minor variations.

Domain names

Domain names increased from $132 million in 2017 to a peak of $183 million in 2019, followed by a slight decline to $164 million in 2021, indicating some fluctuations in valuation but overall growth compared to the starting point.

Other intangible assets

The "Other" category of intangible assets increased from $984 million in 2017 to a high of $1,092 million in 2019, then decreased to $1,016 million by 2021. This reflects moderate variability but generally uses a stable valuation level over the multi-year period.

Intangible assets with definite lives, cost

The cost value of intangible assets with definite lives increased slightly from $2,436 million in 2017 to a peak of $2,584 million in 2019, then declined to $2,371 million by 2021. This pattern suggests some new acquisitions balanced by disposals or write-offs in later years.

Accumulated amortization

Accumulated amortization consistently increased in absolute terms, moving from -$1,606 million in 2017 to -$2,215 million in 2020, before slightly decreasing to -$2,144 million in 2021. The growing amortization indicates ongoing systematic expense recognition against intangible assets with definite lives.

Intangible assets with definite lives, net

The net value of intangible assets with definite lives declined sharply from $830 million in 2017 to $227 million in 2021, reflecting the impact of amortization exceeding new asset additions or capitalizations in this category.

Intangible assets, net

The net intangible assets decreased steadily from $2,309 million in 2017 down to $1,393 million in 2021, showing an overall decline in asset value primarily due to amortization and possible impairments.

Goodwill and intangible assets, net

The combined net value of goodwill and intangible assets also follows a downward trend, decreasing from $10,537 million in 2017 to $8,564 million in 2021. This underscores a significant reduction of these asset categories over the five-year period.

The financial data reveals several notable trends over the five-year period ending in 2021, highlighting fluctuations in assets, equity, and income figures both on a reported and goodwill-adjusted basis.

Total Assets

Reported total assets initially declined slightly from 18,516 million USD in 2017 to 18,033 million USD in 2018. They then increased substantially to 21,416 million USD in 2019, dropped back to 18,690 million USD in 2020, and rose again to 21,548 million USD by the end of 2021. This suggests considerable variability in the asset base, potentially reflecting acquisitions, disposals, or revaluations.

The adjusted total assets, which exclude goodwill, show a somewhat parallel trend but at significantly lower absolute values, indicating that goodwill comprises a major portion of the total assets. Adjusted assets decreased slightly from 10,287 million USD in 2017 to 9,913 million USD in 2018, then increased consistently through 2019 to 13,289 million USD and dipped in 2020 to 11,310 million USD before climbing to 14,377 million USD in 2021. The pattern suggests adjustments to asset valuation and potential impairment or write-down activities primarily affecting goodwill.

Stockholders’ Equity

Reported stockholders' equity shows a declining trend from 4,522 million USD in 2017 to 2,057 million USD in 2021, with a noticeable sharp decline between 2019 and 2020 from 3,967 million USD to 2,532 million USD, continuing downward in 2021. This suggests a weakening equity position, possibly due to accumulated losses or dividends exceeding earnings.

On the adjusted basis, stockholders’ equity is negative throughout the period, worsening from -3,707 million USD in 2017 to -5,114 million USD in 2021. The increasing negative adjusted equity indicates that, after removing intangible assets like goodwill, the company’s net asset position deteriorates markedly. This points to potential challenges in asset quality or capital structure.

Net Income (Loss)

Reported net income attributable to the company showed positive profits in 2017, 2018, and 2019, increasing from 378 million USD to 565 million USD. However, in 2020 there is a substantial reported loss of -2,612 million USD, followed by a modest recovery with a slight profit of 12 million USD in 2021. This sharp loss in 2020 likely correlates with external factors impacting profitability significantly.

The adjusted net income figures follow a similar pattern but show differences in magnitude. Adjusted net income rises from 378 million USD in 2017 to 565 million USD in 2019, with a higher adjusted income in 2018 compared to reported figures (492 million USD vs. 406 million USD). The loss in 2020 is less severe on an adjusted basis (-1,813 million USD) than the reported figure, and the slight profit in 2021 increases to 26 million USD. The smaller adjusted loss in 2020 suggests certain non-cash or goodwill-related impairments influenced the reported results more heavily.

In summary, the data reflects a company experiencing volatility in its asset base and profitability, with a considerable impact from goodwill and intangible asset adjustments. The decline in reported and adjusted equity alongside the drastic loss in 2020 signals financial stress during that period, followed by early signs of recovery in 2021. The large goodwill component significantly affects the financial position and income, highlighting the importance of intangible asset management in evaluating the company’s financial health.

The analyzed financial data reveals notable fluctuations and trends over the five-year period ending December 31, 2021. The reported net profit margin shows a positive range from 2017 to 2019, beginning at 3.76% in 2017, slightly decreasing to 3.62% in 2018, and then increasing to 4.68% in 2019. However, there is a dramatic decline in 2020, with the margin plunging to -50.24%, followed by a minimal recovery to 0.14% in 2021. The adjusted net profit margin exhibits a similar pattern, remaining positive and somewhat higher than the reported figures until 2019, dropping to -34.87% in 2020, and slightly improving to 0.3% in 2021. This suggests significant adverse impacts during 2020, with incomplete recovery in the subsequent year.

The total asset turnover ratio, both reported and adjusted, indicates efficiency in asset utilization over time. The reported ratio rises from 0.54 in 2017 to a peak of 0.62 in 2018, then declines to 0.56 in 2019, sharply decreases to 0.28 in 2020, and partially recovers to 0.4 in 2021. The adjusted total asset turnover remains consistently higher than the reported figures, peaking at 1.13 in 2018 and decreasing to 0.6 in 2021 after a significant drop in 2020. This trend reflects operational challenges affecting asset utilization, especially in 2020, with partial improvement afterward.

Reported financial leverage steadily increases from 4.09 in 2017 to 10.48 in 2021, indicating a rising reliance on debt financing or other liabilities to support assets. No corresponding adjusted financial leverage data is available for comparison. This upward trend in leverage suggests a more leveraged capital structure over the period.

The return on equity (ROE), reported only, mirrors net profit margin trends. ROE rises from 8.36% in 2017 to a peak of 14.24% in 2019, then sharply falls to -103.16% in 2020, indicating a severe loss relative to shareholders' equity before recovering to a positive but very low 0.58% in 2021. The lack of adjusted ROE data limits deeper analysis, but the reported figures point to significant volatility and substantial deterioration in 2020 with limited recovery.

Reported return on assets (ROA) trends are consistent with the other profitability ratios. ROA improves slightly from 2.04% in 2017 to 2.64% in 2019, collapses to -13.98% in 2020, and almost returns to break-even at 0.06% in 2021. Adjusted ROA values are higher from 2017 through 2019 but nevertheless reflect a similar steep decline in 2020 and partial recovery in 2021. This suggests that the company's operating performance was significantly impaired in 2020 with gradual improvement. Overall, the data illustrates a period of relative stability and moderate profitability up to 2019, followed by a major operational and financial disruption in 2020, with early signs of recovery in 2021 that remain well below prior performance levels.

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

The reported net income showed a positive and increasing trend from 2017 to 2019, rising from 378 million US dollars in 2017 to 565 million US dollars in 2019. However, a significant decline occurred in 2020, with a large net loss of 2,612 million US dollars. In 2021, the company returned to a marginal positive net income of 12 million US dollars, indicating a recovery from the previous year's substantial loss.

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

The adjusted net income followed a somewhat similar pattern, increasing from 378 million US dollars in 2017 to 565 million US dollars in 2019, with a notable peak of 492 million US dollars in 2018. Despite the adjustment, the company still experienced a significant adjusted net loss in 2020 amounting to 1,813 million US dollars. In 2021, the adjusted net income recovered to a small positive value of 26 million US dollars, showing a less severe impact compared to the reported figures.

Reported Net Profit Margin

The reported net profit margin showed a moderate and stable performance from 2017 through 2019, fluctuating slightly between 3.62% and 4.68%. In 2020, there was a drastic deterioration to a negative margin of -50.24%, reflecting the substantial loss experienced that year. A significant improvement was observed in 2021, with the margin returning to a near-neutral 0.14%, indicating a move towards profitability.

Adjusted Net Profit Margin

The adjusted net profit margin, similar to the adjusted net income, displayed a steady performance from 2017 through 2019, ranging from 3.76% to 4.68%, with an increase to 4.38% in 2018. The margin dropped sharply in 2020 to -34.87%, mirroring the adjusted net loss and indicating ongoing challenges. The adjustment lessened the decline compared to the reported margin. In 2021, the adjusted margin improved to 0.3%, suggesting a slight recovery in profitability after the adverse impact of 2020.

Overall Insights

Both reported and adjusted figures indicate a strong and stable financial position prior to 2020, followed by a significant negative impact in 2020 which dramatically reduced profitability and resulted in large losses. The adjustments to net income and profit margin soften the severity of these losses but do not negate the overall trend of decline. The year 2021 shows early signs of recovery with marginal positive income and profitability, though the levels remain far below the pre-2020 performance. This trend suggests the company faced substantial challenges in 2020—likely related to extraordinary events—and has since begun to stabilize financially.

Total Assets

Reported total assets exhibit fluctuation over the period, beginning at $18,516 million in 2017, slightly decreasing to $18,033 million in 2018, then rising substantially to $21,416 million in 2019. A decline follows in 2020 to $18,690 million, before rebounding to $21,548 million in 2021. Adjusted total assets, which exclude goodwill, follow a somewhat similar pattern but remain consistently lower than reported assets, starting at $10,287 million in 2017, dipping to $9,913 million in 2018, increasing notably to $13,289 million in 2019, falling to $11,310 million in 2020, and finally climbing to $14,377 million in 2021.

Total Asset Turnover

Reported total asset turnover ratios show a decreasing trend across the periods analyzed. The ratio commences at 0.54 in 2017, increases to 0.62 in 2018, then declines to 0.56 in 2019, sharply drops to 0.28 in 2020, and partially recovers to 0.40 in 2021. Adjusted total asset turnover ratios, while higher than the reported ratios, portray a similar trajectory. Beginning at 0.98 in 2017, the ratio improves to 1.13 in 2018, then decreases to 0.91 in 2019, experiences a significant fall to 0.46 in 2020, and modestly rises to 0.60 in 2021.

Insights and Observations

The divergence between reported and adjusted total assets indicates a considerable goodwill component, which affects the absolute asset values but leaves turnover ratios substantially different. Both reported and adjusted total asset turnover ratios demonstrate a peak in 2018 followed by a deterioration, especially pronounced in 2020, likely reflecting operational challenges or market conditions impacting asset utilization efficiency during that period. The partial recovery in 2021 suggests some rebound in asset productivity but not to pre-2019 levels. The adjusted figures imply that the exclusion of goodwill results in higher turnover ratios, indicating a more efficient use of tangible or adjusted assets relative to total assets. The overall asset base expands over time, although not consistently, reflecting possible asset acquisitions, disposals, or revaluations influencing the company's balance sheet structure.

The reported total assets of the company demonstrated a fluctuating trend over the five-year period. Beginning at $18,516 million in 2017, there was a slight decline to $18,033 million in 2018, followed by a significant increase to $21,416 million in 2019. This was succeeded by a decrease to $18,690 million in 2020. The assets then resumed growth, reaching $21,548 million in 2021, which is the highest value recorded in the period under review.

The adjusted total assets, which presumably exclude goodwill or other intangibles, displayed a somewhat similar pattern with fluctuations that mirror the reported figures but at consistently lower levels. Starting at $10,287 million in 2017, adjusted assets decreased to $9,913 million in 2018, increased notably to $13,289 million in 2019, fell to $11,310 million in 2020, and climbed again to $14,377 million by the end of 2021.

Regarding stockholders’ equity reported figures, a declining trend is evident across the period. Beginning with $4,522 million in 2017, the equity decreased gradually each year to $4,104 million in 2018, $3,967 million in 2019, then more sharply to $2,532 million in 2020, and finally $2,057 million in 2021. This steady decrease may indicate either accumulated losses, increased liabilities, or other factors affecting equity negatively over time.

In contrast, the adjusted stockholders’ equity is reported as negative throughout the entire period and shows a deterioration trend. It begins at -$3,707 million in 2017 and worsens consistently each year, reaching -$5,114 million in 2021. This persistent negative adjusted equity suggests that when goodwill and possibly other adjustments are accounted for, the company’s net asset position is significantly unfavorable.

Financial leverage, as reported, exhibits a rising trajectory, increasing from 4.09 in 2017 to a notably high 10.48 by 2021. This indicates a growing reliance on debt financing relative to equity, reflecting an increasing risk profile and potentially higher financial obligations. Unfortunately, adjusted financial leverage data is not available, preventing a comparative analysis on a goodwill-adjusted basis.

Overall, the data reveals growth in asset base with volatility, a declining equity position both reported and adjusted, and an increasing leverage ratio. These combined factors suggest increasing financial risk and potentially eroding shareholder value over the observed period.

The financial data exhibits notable fluctuations in both profitability and equity measures over the five-year period.

Net Income

Reported net income shows growth from 2017 through 2019, increasing from 378 million USD to 565 million USD. However, 2020 experiences a sharp reversal with a substantial loss of 2,612 million USD, followed by a modest recovery in 2021 with a net income of 12 million USD. Adjusted net income follows a similar trajectory but presents less severe losses in 2020 (1,813 million USD loss) and a slight improvement in 2021 to a 26 million USD income, indicating adjustments reduce the impact of extraordinary items.

Stockholders’ Equity

Reported total stockholders' equity decreases consistently from 4,522 million USD in 2017 to 2,057 million USD in 2021, reflecting a declining equity base. Contrarily, adjusted stockholders’ equity values are negative throughout the period and appear to decline further each year, from -3,707 million USD in 2017 to -5,114 million USD in 2021, signaling adjustments that substantially reduce equity valuation, possibly due to goodwill impairments or other non-cash charges.

Return on Equity (ROE)

Reported ROE increases from 8.36% in 2017 to a peak of 14.24% in 2019, demonstrating improved profitability relative to equity. The year 2020 shows a dramatic drop to -103.16%, aligned with the large net loss and reduced equity. A recovery is noted in 2021 with ROE at 0.58%, indicating a marginal return on equity. Adjusted ROE values are not provided, preventing further insights on adjusted profitability performance.

Overall, the company shows strong profitability and equity trends up to 2019, followed by significant declines in 2020 likely tied to extraordinary circumstances, with only partial recovery into 2021. The adjustments made to net income and equity consistently reduce reported metrics, underscoring the impact of non-operational factors on financial performance. The declining equity and volatile returns suggest heightened risk and capital erosion during this timeframe.

Net Income Trends

The reported net income attributable to the company showed an increasing trend from 2017 through 2019, rising from 378 million USD to 565 million USD. However, in 2020, a significant decline occurred, with a reported net loss of 2,612 million USD. A recovery is observed in 2021, with net income returning to a positive figure of 12 million USD, though this is substantially lower than the pre-2020 levels. The adjusted net income follows a similar pattern, with values increasing from 378 million USD in 2017 to 565 million USD in 2019, then experiencing a less severe adjusted loss of 1,813 million USD in 2020, and a slight improvement to 26 million USD in 2021.

Total Assets

The reported total assets experienced minor fluctuations through the period, decreasing slightly from 18,516 million USD in 2017 to 18,033 million USD in 2018, then increasing notably to 21,416 million USD in 2019. A downturn occurred in 2020, reducing assets to 18,690 million USD, followed by an increase to 21,548 million USD in 2021. Adjusted total assets show a similar pattern but at lower absolute values, beginning at 10,287 million USD in 2017, declining slightly in 2018, rising sharply to 13,289 million USD in 2019, then decreasing again in 2020 before recovering to 14,377 million USD in 2021.

Return on Assets (ROA)

The reported ROA indicates modest improvements from 2.04% in 2017 to 2.64% in 2019, followed by a marked reversal in 2020 with a significant negative return of -13.98%. A slight recovery occurs in 2021, but the ROA remains nearly negligible at 0.06%. The adjusted ROA mirrors this trend but with generally higher values prior to 2020, peaking at 4.96% in 2018 and declining to 4.25% in 2019 before collapsing to -16.03% in 2020. In 2021, the adjusted ROA shows a minor improvement to 0.18%, indicating ongoing challenges in asset profitability.

Overall Observations

The data reflects strong operational performance from 2017 to 2019, with growth in net income and asset base alongside improving returns on assets. The year 2020 represents a critical downturn, likely indicative of extraordinary conditions impacting profitability and asset utilization, as evidenced by the substantial net losses and severely negative ROA. Although 2021 shows initial signs of recovery with net income returning to positive territory and asset levels rebounding, performance metrics remain significantly below pre-2020 benchmarks, suggesting a cautious outlook on the company's full return to prior profitability levels.