Expedia Group Inc. (NASDAQ:EXPE)

The analysis of the annual financial data reveals several notable trends in the company's current assets and adjusted current assets over the period from the end of 2017 to the end of 2021.

Current Assets

Current assets demonstrate fluctuation throughout the analyzed period. An initial decrease is observed from 5,540 million US dollars in 2017 to 5,197 million in 2018, representing a reduction. Subsequently, there is a significant increase in 2019, reaching 7,735 million, followed by a decline to 5,634 million in 2020. The year 2021 shows a robust recovery, peaking at 8,181 million US dollars. Overall, the current assets exhibit volatility with substantial growth in the latter years.

Adjusted Current Assets

Adjusted current assets closely mirror the trend observed in current assets, with values slightly higher across all years. Beginning at 5,570 million in 2017, a slight decline occurs in 2018 to 5,231 million. There is a pronounced rise in 2019 to 7,776 million, followed by a decrease in 2020 to 5,735 million. The data concludes with a significant upswing in 2021, reaching 8,246 million. The adjustments appear to maintain consistency in growth patterns while presenting moderately elevated figures.

In summary, both current and adjusted current assets demonstrate a pattern of initial decline, marked growth in 2019, a dip during 2020, likely reflecting external pressures or operational changes, and a strong rebound in 2021. The overall trajectory points to recovery and growth potential, with adjusted current assets consistently maintaining a slightly higher valuation than unadjusted figures.

The analysis of the financial data over the five-year period reveals several notable trends in the total and adjusted total assets.

Total assets

The total assets decreased slightly from 18,516 million USD at the end of 2017 to 18,033 million USD at the end of 2018. This was followed by a significant increase to 21,416 million USD in 2019. However, in 2020, total assets declined to 18,690 million USD, potentially reflecting external or operational impacts during that year. By the end of 2021, total assets recovered to 21,548 million USD, reaching the highest value in the period analyzed.

Adjusted total assets

Adjusted total assets showed a similar trend, starting at 19,220 million USD at the end of 2017 and decreasing to 18,757 million USD by the end of 2018. The figure increased markedly to 21,312 million USD in 2019, dropped to 18,132 million USD in 2020, and rose again to 20,847 million USD in 2021. This pattern mirrors the fluctuations seen in total assets, indicating consistent adjustments in asset valuation or classification over time.

Overall, the data indicates that the company experienced volatility in its asset base with a peak in 2019, a decline in 2020, and a recovery in 2021. The sharp decline in 2020 may suggest exposure to adverse conditions impacting asset levels, while the recovery in 2021 implies a rebound or strategic asset management. The close alignment between total and adjusted total assets suggests that adjustments did not significantly diverge from the reported asset values, maintaining a consistent relationship throughout the years.

The analysis of the annual financial data reveals the following patterns for the liabilities of the company over the specified periods.

Current Liabilities

The current liabilities demonstrated a fluctuating trend from 2017 through 2021. Starting at 7,879 million USD in 2017, the value increased slightly to 8,060 million USD in 2018. A more significant rise occurred in 2019, reaching 10,714 million USD, indicating a substantial increase in short-term obligations. However, in 2020, there was a notable reduction to 5,406 million USD, which could suggest improved liquidity or decreased short-term debt during that year. The value then rose again in 2021 to 9,450 million USD, pointing to a return to higher current liabilities.

Adjusted Current Liabilities

Adjusted current liabilities followed a somewhat similar but less volatile pattern compared to the unadjusted figures. Beginning at 4,334 million USD in 2017, the values decreased to 3,369 million USD in 2018. In 2019, an increase to 4,714 million USD was observed, followed by a sharp decline to 2,127 million USD in 2020. For 2021, adjusted current liabilities increased again to 3,596 million USD. This trend suggests adjustments made for certain liabilities show smaller fluctuations and a generally lower level than total current liabilities, potentially reflecting more conservative or refined measures of short-term obligations.

Overall, both current liabilities and adjusted current liabilities peaked in 2019 before declining substantially in 2020, a year which may have been influenced by external economic factors. The subsequent increase in 2021 indicates a rebound but not necessarily to the 2019 highs in adjusted liabilities, while total current liabilities almost regained their previous peak. These fluctuations imply variations in the company's short-term financial commitments over this period, which may impact liquidity and operational flexibility.

The financial data reveals notable trends in the total and adjusted total liabilities over the five-year period from 2017 to 2021. Total liabilities displayed a relatively stable figure between 2017 and 2018, with a slight decrease from 12,365 million US dollars to 12,352 million US dollars. However, starting in 2019, total liabilities increased significantly to 15,865 million US dollars, representing a sharp rise of approximately 28.5% compared to the previous year. Although there was a marginal decline in 2020 to 14,651 million US dollars, the upward trend resumed in 2021, reaching the highest value of 17,996 million US dollars in the period examined.

Adjusted total liabilities presented a downward trend initially, decreasing from 9,174 million US dollars in 2017 to 8,351 million US dollars in 2018. From 2018 onwards, there was a consistent increase each year, reaching 9,792 million US dollars in 2019, 11,202 million US dollars in 2020, and 12,058 million US dollars in 2021. This indicates a steady growth of approximately 44.5% in adjusted total liabilities over the final three years.

The divergence between total liabilities and adjusted total liabilities suggests a trend toward increasing liabilities when adjusted for specific considerations or accounting treatments. The overall upward trajectory in both measures during recent years may indicate expansionary financing activities or growing obligations, warranting careful monitoring of debt levels and their impact on financial stability.

The financial data reveals distinct trends in both the reported total stockholders' equity and the adjusted total stockholders' equity over the five-year period ending December 31, 2021.

Total Expedia Group, Inc. stockholders’ equity (US$ in millions)

This metric shows a consistent downward trend from 2017 through 2021. The equity decreased from $4,522 million in 2017 to $2,057 million by the end of 2021. The most significant drop occurred between 2019 and 2020, where equity fell sharply from $3,967 million to $2,532 million. This decline continued into 2021, indicating a reduction in the company's net asset value attributable to shareholders over these years.

Adjusted total stockholders’ equity (US$ in millions)

Unlike the reported total equity, the adjusted equity reflects a different pattern. From 2017 to 2019, there was a steady increase, growing from $10,047 million to $11,520 million. However, a marked decline occurred in 2020, where adjusted equity dropped to $6,930 million. The adjusted equity partially recovered in 2021, rising to $8,789 million, although it remained significantly below pre-2020 levels.

Overall, the data suggests financial challenges beginning in 2020, likely impacting both reported and adjusted equity figures. Despite the recovery observed in the adjusted equity in 2021, the reported total stockholders’ equity did not exhibit a similar upward movement, indicating that certain adjustments or revaluations may have cushioned the impact on adjusted equity. The divergence between the two equity measures highlights the importance of considering both reported and adjusted figures when assessing the company's financial position and resilience during the observed period.

The financial data over the five-year period shows notable fluctuations in debt, equity, and capital figures. Several key trends emerge from the analysis.

Total reported debt

This metric initially decreases from 4,249 million USD in 2017 to 3,717 million USD in 2018, followed by a significant increase to 4,938 million USD in 2019. The upward trend becomes more pronounced in 2020 and 2021, reaching 8,216 million USD and 8,450 million USD respectively. This indicates a growing reliance on debt financing over time, particularly after 2018.

Total Expedia Group, Inc. stockholders’ equity

Stockholders' equity demonstrates a continuous decline throughout the period. Beginning at 4,522 million USD in 2017, it decreases gradually each year to 4,104 million USD in 2018, 3,967 million USD in 2019, dropping sharply to 2,532 million USD in 2020, and further declining to 2,057 million USD by the end of 2021. This downward trajectory points to diminishing shareholder value or retention of earnings.

Total reported capital

Total reported capital, defined as the sum of debt and equity, shows an overall increase from 8,771 million USD in 2017 to 10,507 million USD in 2021. The capital base expands steadily from 2018 onwards, with a notable jump between 2019 and 2020, despite the drop in equity components.

Adjusted total debt

The adjusted total debt follows a pattern similar to total reported debt, but with higher values across all years, reflecting additional liabilities or adjustments not included in the reported debt. It increases from 4,941 million USD in 2017 to 8,887 million USD in 2021, with the most rapid rise occurring between 2019 and 2020.

Adjusted total stockholders’ equity

Contrasting the declining reported equity, adjusted total stockholders’ equity increases from 10,047 million USD in 2017 to 11,520 million USD in 2019, indicating possible revaluation or inclusion of other equity components. However, a significant reduction is seen in 2020, falling to 6,930 million USD, followed by a partial recovery to 8,789 million USD in 2021.

Adjusted total capital

Adjusted total capital, the sum of adjusted debt and adjusted equity, remains relatively stable during 2017 and 2018 at just under 15,000 million USD, rises to 17,109 million USD in 2019, dips to 15,785 million USD in 2020, and then increases again to 17,676 million USD in 2021. This pattern reflects the combined effect of changes in both adjusted debt and equity over time.

Overall, the data suggests that the company increased its leverage substantially after 2018, accompanied by a decline in reported shareholder equity. Adjusted figures hint at more complex equity movements, including a significant drop during 2020, potentially related to market disruptions. Despite these fluctuations, the company's total capital base increased over the five-year horizon, driven primarily by the growth in debt levels.

The financial data reveals significant fluctuations in both revenue and adjusted revenue over the analyzed periods. From 2017 to 2019, there is a consistent upward trend in both metrics, indicating growth in the company's earning capacity during these years.

Revenue

The revenue increased steadily from 10,060 million US$ in 2017 to 12,067 million US$ in 2019, reflecting a positive growth trajectory. However, there is a pronounced decline in 2020, where revenue drops to 5,199 million US$, less than half of the previous year. This contraction likely reflects external challenges impacting the business environment during that period. In 2021, revenue shows a partial recovery to 8,598 million US$, indicating ongoing but incomplete recovery efforts.

Adjusted Revenue

Adjusted revenue follows a similar pattern, increasing from 10,705 million US$ in 2017 to 13,376 million US$ in 2019. The decline in 2020 is even more pronounced, dropping dramatically to 2,478 million US$. By 2021, adjusted revenue rebounds strongly to 11,173 million US$, which surpasses the 2019 level, suggesting effective adjustments or accounting changes that reflect an improved underlying business performance or restructuring impact.

Overall, the data demonstrates strong growth prior to 2020, a severe contraction during 2020 consistent with extraordinary external conditions, and a significant recovery phase in 2021. The disparity between reported revenue and adjusted revenue in 2021 points to notable adjustments that may account for one-time events, cost management, or other operational changes enhancing the financial outcomes that year.

The financial data reveals significant volatility in the net income performance over the analyzed periods. There was a consistent positive net income from 2017 through 2019, with values increasing from 378 million US dollars in 2017 to 565 million US dollars in 2019, indicating a period of growth and profitability.

However, a drastic reversal occurred in 2020, with net income registering a substantial loss of 2,612 million US dollars. This represents a sharp decline compared to previous years and marks a period of significant financial challenge.

In 2021, the company returned to a marginally positive net income of 12 million US dollars, suggesting a recovery from the previous year's substantial loss but still far below pre-2020 levels.

The adjusted net income figures, which typically exclude one-time or extraordinary items, mirror this pattern with notable differences in magnitude. The adjusted net income was stable and relatively high in 2017 and 2018, at 1,143 million and 1,126 million US dollars respectively, followed by a considerable increase to 1,801 million US dollars in 2019. This indicates strong operational performance before 2020.

In 2020, the adjusted net income fell sharply to a loss of 5,696 million US dollars, an even more pronounced downturn compared to the non-adjusted figure, highlighting significant operational and possibly one-time expenses during that year.

In contrast, 2021 showed a robust adjusted net income of 2,307 million US dollars, not only recovering but surpassing previous peak levels seen in 2019. This suggests effective cost control or one-time gains that improved adjusted profitability despite the continued challenges suggested by the net income figures.

In summary, the data depicts a strong pre-2020 financial situation that was severely disrupted in 2020, likely due to extraordinary external factors. The recovery in 2021 is notable, especially on an adjusted basis, although net income remains at a low absolute level in comparison to earlier years.