Expedia Group Inc. (NASDAQ:EXPE)

The analysis of the financial data over the period reveals several notable trends in profitability, asset growth, and return on assets (ROA) for the company.

Net Income (Loss) Attributable to the Company (in US$ millions)

The net income figures show significant volatility across the years. Early years from 2005 to 2007 depict a generally positive trend, with income rising from 229 million to 296 million. However, 2008 marks a sharp decline with a substantial loss of -2,518 million, indicating a troubling financial event. Following this, the company returns to profitability with varying gains, peaking at 764 million in 2015. The years 2016 through 2019 reflect moderate but consistent profitability ranging between 282 million and 565 million. Another significant loss occurs in 2020, with a sharp downturn of -2,612 million, likely attributed to extraordinary circumstances. The company recovers slightly in 2021 but remains near break-even with a modest net income of 12 million.

Total Assets (in US$ millions)

Total assets exhibit overall growth throughout the period, albeit with some variability. From 2005 to 2007, assets grow steadily from 7,757 million to 8,295 million. There is a noticeable dip in 2008 to 5,894 million, coinciding with the substantial net loss in the same year. Afterward, total assets generally increase, surpassing 9,000 million by 2014 and then showing a marked jump to over 15,000 million in 2015 and 2016. The upward trajectory continues with assets reaching a peak of 21,548 million in 2021, despite minor fluctuations in intervening years. This indicates ongoing investment or acquisition activity and possible expansion.

Return on Assets (ROA, %)

The ROA percentages echo the trends seen in net income, reflecting profitability in relation to asset base. Initial years show positive returns around 3%, climbing to 3.57% by 2007. A dramatic negative ROA of -42.72% occurs in 2008, reflecting the large net loss that year. Recovery follows with ROA stabilizing between 2% and 7% over the next several years, peaking at 7.26% in 2011. Subsequently, ROA declines to lower single digits, mostly between 1.79% and 4.93%, before dropping sharply in 2020 to -13.98%, corresponding again with the second major net loss. The ROA in 2021 is nearly zero, aligning with the minimal net income and large asset base.

Overall, the company experienced two major periods of financial distress, reflected in large net losses and negative ROA in 2008 and 2020. Outside these years, the firm maintains positive earnings and growth in total assets, though profitability ratios suggest moderate returns relative to the asset size. The substantial increase in total assets from 2014 onward indicates significant investment or expansion efforts, which have yet to translate into consistently high returns last recorded.