Operating Profit Margin
since 2005
Calculation
Expedia Group Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 2.16% | = | 100 | × | 186) | ÷ | 8,598) |
| Dec 31, 2020 | -52.30% | = | 100 | × | (2,719) | ÷ | 5,199) |
| Dec 31, 2019 | 7.48% | = | 100 | × | 903) | ÷ | 12,067) |
| Dec 31, 2018 | 6.36% | = | 100 | × | 714) | ÷ | 11,223) |
| Dec 31, 2017 | 6.21% | = | 100 | × | 625) | ÷ | 10,060) |
| Dec 31, 2016 | 5.26% | = | 100 | × | 462) | ÷ | 8,774) |
| Dec 31, 2015 | 6.20% | = | 100 | × | 414) | ÷ | 6,672) |
| Dec 31, 2014 | 8.98% | = | 100 | × | 518) | ÷ | 5,763) |
| Dec 31, 2013 | 7.67% | = | 100 | × | 366) | ÷ | 4,771) |
| Dec 31, 2012 | 10.71% | = | 100 | × | 432) | ÷ | 4,030) |
| Dec 31, 2011 | 13.91% | = | 100 | × | 480) | ÷ | 3,449) |
| Dec 31, 2010 | 21.86% | = | 100 | × | 732) | ÷ | 3,348) |
| Dec 31, 2009 | 19.33% | = | 100 | × | 571) | ÷ | 2,955) |
| Dec 31, 2008 | -82.70% | = | 100 | × | (2,429) | ÷ | 2,937) |
| Dec 31, 2007 | 19.85% | = | 100 | × | 529) | ÷ | 2,665) |
| Dec 31, 2006 | 15.70% | = | 100 | × | 351) | ÷ | 2,238) |
| Dec 31, 2005 | 18.73% | = | 100 | × | 397) | ÷ | 2,119) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The operating profit margin of Expedia Group Inc. between 2005 and 2021 is characterized by significant volatility, punctuated by two severe contractions and a prolonged period of margin compression despite consistent revenue growth.
- Cyclical Volatility and Crisis Impact
- The operating profit margin experienced two extreme negative outliers. In 2008, the margin plummeted to -82.70%, corresponding with an operating loss of 2,429 million USD. A similar collapse occurred in 2020, where the margin fell to -52.30% as revenue dropped from 12,067 million USD in 2019 to 5,199 million USD. These events indicate a high sensitivity of operating profitability to global economic shocks.
- Margin Compression During Revenue Expansion
- A notable divergence between revenue growth and profitability is observed from 2011 to 2016. During this window, revenue increased from 3,449 million USD to 8,774 million USD; however, the operating profit margin steadily declined from 13.91% to a low of 5.26%. This suggests that the costs associated with scaling operations and increasing market share grew at a faster rate than the resulting top-line revenue.
- Recovery and Stability Phases
- Following the 2008 downturn, a rapid recovery occurred, with margins returning to 19.33% in 2009 and peaking at 21.86% in 2010. A secondary, more gradual period of stability was observed between 2017 and 2019, where margins incrementally improved from 6.21% to 7.48%. The most recent data from 2021 shows a return to profitability with a margin of 2.16%, though this remains significantly below the historical peaks seen in the 2005-2010 era.
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Comparison to Competitors
Expedia Group Inc., operating profit margin, long-term trends, comparison to competitors
| Expedia Group Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | |
|---|---|---|---|---|
| Dec 31, 2021 | 2.16% | 5.30% | 13.84% | 10.77% |
| Dec 31, 2020 | -52.30% | 5.93% | 14.37% | 8.75% |
| Dec 31, 2019 | 7.48% | 5.18% | 14.35% | 5.63% |
| Dec 31, 2018 | 6.36% | 5.33% | 14.55% | 9.60% |
| Dec 31, 2017 | 6.21% | 2.31% | 14.19% | 8.99% |
| Dec 31, 2016 | 5.26% | 3.08% | 13.30% | 8.41% |
| Dec 31, 2015 | 6.20% | 2.09% | 12.59% | 8.52% |
| Dec 31, 2014 | 8.98% | 0.20% | 11.63% | 0.00% |
| Dec 31, 2013 | 7.67% | 1.00% | 10.39% | 0.00% |
| Dec 31, 2012 | 10.71% | 1.11% | 9.46% | 0.00% |
| Dec 31, 2011 | 13.91% | 1.79% | 8.59% | 0.00% |
| Dec 31, 2010 | 21.86% | 4.11% | 7.26% | 0.00% |
| Dec 31, 2009 | 19.33% | 4.61% | 6.11% | 0.00% |
| Dec 31, 2008 | -82.70% | 4.39% | 9.36% | 0.00% |
| Dec 31, 2007 | 19.85% | 4.42% | 10.65% | 0.00% |
| Dec 31, 2006 | 15.70% | 3.63% | 11.49% | 0.00% |
| Dec 31, 2005 | 18.73% | 5.09% | 10.84% | 0.00% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).