Analysis of Geographic Areas
Expedia Group Inc. operates in 2 regions: United States and All other countries.
Area Asset Turnover
Expedia Group Inc., asset turnover by geographic area
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| United States | 3.20 | 1.66 | 3.37 | 3.95 | 4.16 |
| All other countries | 16.36 | 11.80 | 32.49 | 16.41 | 18.51 |
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).
The geographic analysis of asset turnover reveals a significant disparity in asset utilization efficiency between the United States and international markets, with both segments experiencing substantial volatility during the 2020 fiscal year.
- United States Asset Turnover
- A gradual decline in efficiency was observed from 2017 to 2019, with the ratio decreasing from 4.16 to 3.37. This downward trend accelerated sharply in 2020, reaching a period low of 1.66, which represents a more than 50% decrease from the previous year. A recovery occurred in 2021, with the ratio rising to 3.20, nearly returning to the 2019 level.
- International Asset Turnover (All Other Countries)
- International operations consistently maintained substantially higher turnover ratios than the domestic market. After a slight dip in 2018, the ratio spiked to a peak of 32.49 in 2019. Similar to the US trend, a severe contraction occurred in 2020, where the ratio fell to 11.80. By 2021, the ratio recovered to 16.36, aligning closely with the efficiency levels seen in 2018.
- Comparative Geographic Performance
- The international segment exhibits a significantly more asset-light model or higher revenue generation per unit of asset compared to the United States. While both regions suffered a collapse in asset turnover in 2020, the international segment's lowest point remained considerably higher than the US peak, suggesting a fundamental difference in the operational structure or asset intensity between the two geographic areas.
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Area Asset Turnover: United States
Expedia Group Inc.; United States; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 6,569) | 3,511) | 6,869) | 6,202) | 5,534) |
| Property and equipment, net | 2,056) | 2,114) | 2,038) | 1,571) | 1,331) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 3.20 | 1.66 | 3.37 | 3.95 | 4.16 |
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).
1 2021 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= 6,569 ÷ 2,056 = 3.20
The financial performance for the United States geographic area is characterized by a period of steady growth, a significant contraction in 2020, and a subsequent recovery in 2021. The relationship between revenue generation and asset utilization reveals fluctuations in operational efficiency over the five-year period.
- Revenue Trajectory
- Revenue grew consistently from 2017 to 2019, rising from 5,534 million to 6,869 million. A severe decline occurred in 2020, with revenue dropping to 3,511 million, followed by a strong recovery in 2021 to 6,569 million, nearly returning to 2019 levels.
- Fixed Asset Investment
- Net property and equipment showed a continuous upward trend from 2017 through 2020, increasing from 1,331 million to 2,114 million. This indicates a sustained investment in the asset base that remained independent of the revenue volatility seen in 2020. A marginal decrease to 2,056 million was noted in 2021.
- Area Asset Turnover Analysis
- The area asset turnover ratio declined from 4.16 in 2017 to 3.37 in 2019, suggesting that asset accumulation grew faster than revenue during this phase. The ratio plummeted to 1.66 in 2020, reflecting the impact of drastically reduced revenue against a peak asset base. By 2021, the ratio improved to 3.20, demonstrating a recovery in the ability to generate revenue from the invested assets, although efficiency levels remain lower than those recorded in 2017 and 2018.
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Area Asset Turnover: All other countries
Expedia Group Inc.; All other countries; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 2,029) | 1,688) | 5,198) | 5,021) | 4,525) |
| Property and equipment, net | 124) | 143) | 160) | 306) | 244) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 16.36 | 11.80 | 32.49 | 16.41 | 18.51 |
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).
1 2021 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= 2,029 ÷ 124 = 16.36
Financial performance across non-primary geographic regions reveals significant volatility in revenue and asset efficiency between 2017 and 2021, characterized by a severe contraction in 2020 and a subsequent partial recovery.
- Revenue Trends
- Revenue experienced steady growth from 4,525 million USD in 2017 to a peak of 5,198 million USD in 2019. This growth trajectory was interrupted by a sharp decline in 2020, with revenue falling to 1,688 million USD. A moderate recovery was noted in 2021, as revenue rose to 2,029 million USD.
- Property and Equipment Analysis
- Net property and equipment increased from 244 million USD in 2017 to a peak of 306 million USD in 2018. Following this peak, a consistent downward trend occurred over the next three years, with the value decreasing to 124 million USD by the end of 2021. This represents a significant reduction in the physical asset base relative to the start of the period.
- Area Asset Turnover Efficiency
- The area asset turnover ratio showed extreme instability. After a slight dip from 18.51 in 2017 to 16.41 in 2018, the ratio spiked to 32.49 in 2019, which can be attributed to the simultaneous increase in revenue and the reduction of net property and equipment. The ratio then collapsed to 11.80 in 2020, indicating that the decline in revenue was far more severe than the reduction in assets. Efficiency began to stabilize in 2021, with the ratio recovering to 16.36.
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Revenue
Expedia Group Inc., revenue by geographic area
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| United States | 6,569) | 3,511) | 6,869) | 6,202) | 5,534) |
| All other countries | 2,029) | 1,688) | 5,198) | 5,021) | 4,525) |
| Total | 8,598) | 5,199) | 12,067) | 11,223) | 10,060) |
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).
Total revenue exhibited a consistent growth trajectory from 2017 to 2019, increasing from 10,060 million US$ to 12,067 million US$. This growth was interrupted by a severe contraction in 2020, where total revenue fell to 5,199 million US$, representing a decline of approximately 57% from the previous year. A recovery phase began in 2021, with total revenue rising to 8,598 million US$, although this remained below 2019 levels.
- United States Revenue Trends
- The domestic market showed steady expansion between 2017 and 2019, peaking at 6,869 million US$. Despite a significant drop to 3,511 million US$ in 2020, the U.S. segment demonstrated strong resilience in 2021, recovering to 6,569 million US$. This indicates that domestic revenue nearly returned to its pre-pandemic peak, recovering approximately 95% of its 2019 value.
- International Revenue Trends
- Revenue from all other countries followed a growth pattern from 2017 to 2019, reaching 5,198 million US$. However, this segment experienced a more acute decline than the domestic market in 2020, falling to 1,688 million US$. The recovery in 2021 was markedly slower, with revenue reaching only 2,029 million US$, which is significantly lower than the 5,198 million US$ recorded in 2019.
- Geographic Revenue Concentration
- A significant shift in geographic revenue distribution is observed over the five-year period. In 2017, the United States accounted for approximately 55% of total revenue. By 2021, due to the disproportionate recovery of the domestic market compared to international markets, the United States' contribution to total revenue increased to approximately 76%.
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Property and equipment, net
Expedia Group Inc., property and equipment, net by geographic area
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| United States | 2,056) | 2,114) | 2,038) | 1,571) | 1,331) |
| All other countries | 124) | 143) | 160) | 306) | 244) |
| Total | 2,180) | 2,257) | 2,198) | 1,877) | 1,575) |
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).
The total net property and equipment experienced an overall upward trajectory from 2017 to 2020, followed by a slight contraction in 2021. Total assets grew from 1,575 million US dollars in 2017 to a peak of 2,257 million US dollars in 2020, before settling at 2,180 million US dollars at the end of 2021.
- United States Asset Allocation
- Domestic property and equipment showed consistent growth between 2017 and 2020, increasing from 1,331 million US dollars to 2,114 million US dollars. The most significant expansion occurred between 2018 and 2019, with an increase of 467 million US dollars. A slight reduction to 2,056 million US dollars was recorded in 2021.
- International Asset Allocation
- Assets located in all other countries peaked in 2018 at 306 million US dollars. Subsequently, a downward trend was observed, with values falling sharply to 160 million US dollars in 2019 and continuing to decline to 124 million US dollars by the end of 2021, representing a significant reduction in international physical asset holdings.
- Geographic Distribution Shift
- The distribution of net property and equipment shifted increasingly toward the United States. While US assets comprised approximately 84% of the total in 2017, this proportion increased to approximately 94% by 2021. This indicates a concentration of physical infrastructure within the domestic market relative to international operations.
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