Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Expedia Group Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Current Ratio
- The current ratio displayed a relatively stable pattern between March 2018 and December 2019, fluctuating mildly between 0.64 and 0.76, indicating consistent short-term liquidity management. An increase was observed commencing in March 2020, reaching a peak of 1.19 in September 2020, which may suggest an improvement in the company’s ability to cover current liabilities during this period. Following this peak, a gradual decline ensued from December 2020 through to March 2022, settling near 0.89. This downward trend after the peak implies a modest reduction in short-term liquidity but remains above the earlier period values prior to 2020.
- Quick Ratio
- The quick ratio largely mirrored the current ratio's trend, remaining between 0.61 and 0.72 up to December 2019, reflecting a consistent liquid asset position excluding inventories. Beginning in March 2020, a sharp increase took place, peaking at 1.05 in September 2020, which suggests enhanced capacity to meet immediate obligations without reliance on inventory. Subsequently, a decline was noted from December 2020 to March 2022, with the ratio falling to approximately 0.79. The trend indicates that while liquidity improved substantially in 2020, it has somewhat receded but still remains higher than pre-2020 levels.
- Cash Ratio
- The cash ratio exhibited a lower base relative to the current and quick ratios, consistently between 0.34 and 0.47 until December 2019, indicating a more conservative liquidity position based strictly on cash and cash equivalents. Starting in March 2020, a marked increase occurred, reaching a maximum of 0.91 by September 2020, reflecting a significant accumulation of cash or cash equivalents. After the peak, a gradual decline followed through March 2022, descending to about 0.65, still above the earlier historical range. This pattern suggests a strategic buildup of cash reserves in response to external conditions around early 2020 with a subsequent corresponding reduction, while maintaining a stronger liquidity position than in the pre-2020 period.
- Overall Insights
- All three key liquidity ratios indicated steady but modest liquidity prior to 2020, followed by a pronounced improvement during 2020, consistent with a defensive liquidity enhancement possibly due to external economic uncertainties. After peaking in the third quarter of 2020, a gradual normalization and slight contraction in liquidity ratios occurred, stabilizing at levels still above those preceding 2020. This pattern suggests a balanced approach to liquidity management, strengthening cash and near-cash positions in uncertain times and adjusting holdings as conditions evolved. The current, quick, and cash ratios collectively depict a liquidity position that strengthened significantly during a period of volatility and then moderated while remaining relatively healthy.
Current Ratio
Expedia Group Inc., current ratio calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current assets | 11,147) | 8,181) | 9,043) | 11,113) | 8,836) | 5,634) | 6,735) | 8,944) | 7,652) | 7,735) | 7,969) | 8,824) | 7,702) | 5,197) | 6,172) | 7,794) | 7,431) | ||||||
| Current liabilities | 12,469) | 9,450) | 9,751) | 11,713) | 8,774) | 5,406) | 5,636) | 7,872) | 9,608) | 10,714) | 10,582) | 11,676) | 10,726) | 8,060) | 8,763) | 10,497) | 9,991) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Current ratio1 | 0.89 | 0.87 | 0.93 | 0.95 | 1.01 | 1.04 | 1.19 | 1.14 | 0.80 | 0.72 | 0.75 | 0.76 | 0.72 | 0.64 | 0.70 | 0.74 | 0.74 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||
| Amazon.com Inc. | 0.96 | 1.14 | 1.12 | 1.20 | 1.05 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Home Depot Inc. | 1.10 | 1.23 | 1.36 | 1.30 | 1.17 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lowe’s Cos. Inc. | 1.17 | 1.19 | 1.38 | 1.30 | 1.20 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| TJX Cos. Inc. | 1.52 | 1.46 | 1.41 | 1.51 | 2.20 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 11,147 ÷ 12,469 = 0.89
2 Click competitor name to see calculations.
The analysis of the company's short-term financial position reveals several notable trends over the examined periods.
- Current Assets
- Current assets exhibit fluctuations throughout the quarters, initially declining from approximately $7.4 billion to around $5.2 billion between March 2018 and December 2018. Thereafter, a recovery is observed with current assets rising to a peak near $11.1 billion by June 2021. Toward the last period analyzed, there is some variability but generally, current assets remain elevated relative to the earlier periods.
- Current Liabilities
- Current liabilities follow a somewhat similar cyclical pattern, with an increase from approximately $10 billion in early 2018 to over $11.6 billion by mid-2019. A drop in liabilities is noticeable in 2020, reaching lows near $5.4 billion by the end of 2020, corresponding closely with the pandemic period. Liabilities then rise again significantly, reaching nearly $12.5 billion by March 2022.
- Current Ratio
- The current ratio, a key liquidity indicator, starts below 1.0, indicating that current liabilities generally exceed current assets initially. It remains consistently under 1.0 through 2018 and early 2019, reflecting relatively tight short-term liquidity. However, a marked improvement occurs in 2020, with the ratio peaking at 1.19 by the third quarter of 2020, suggesting improved ability to cover short-term obligations. Post-2020, the ratio declines progressively, moving closer to 0.89 by the first quarter of 2022, signaling a reduction in short-term liquidity coverage despite maintained levels of current assets.
In summary, the company's liquidity profile has shown considerable variation, with a phase of constrained liquidity prior to 2020, followed by an enhancement during 2020, likely influenced by the extraordinary economic conditions of that year. The subsequent recent decline in the current ratio, despite relatively high current asset levels, suggests an increase in current liabilities that may warrant monitoring to ensure ongoing short-term financial stability.
Quick Ratio
Expedia Group Inc., quick ratio calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cash and cash equivalents | 5,552) | 4,111) | 5,031) | 5,464) | 4,291) | 3,363) | 4,353) | 5,053) | 3,905) | 3,315) | 3,797) | 4,258) | 3,708) | 2,443) | 2,920) | 3,072) | 3,423) | ||||||
| Restricted cash and cash equivalents | 2,583) | 1,694) | 1,587) | 2,541) | 1,972) | 772) | 725) | 1,311) | 813) | 779) | 447) | 619) | 447) | 259) | 186) | 336) | 219) | ||||||
| Short-term investments | —) | 200) | —) | 11) | 23) | 24) | 23) | 422) | 194) | 526) | 658) | 631) | 466) | 28) | 458) | 1,491) | 1,031) | ||||||
| Accounts receivable, net of allowance | 1,736) | 1,264) | 1,485) | 1,440) | 1,007) | 701) | 839) | 1,002) | 1,423) | 2,524) | 2,684) | 2,893) | 2,617) | 2,151) | 2,294) | 2,359) | 2,253) | ||||||
| Total quick assets | 9,871) | 7,269) | 8,103) | 9,456) | 7,293) | 4,860) | 5,940) | 7,788) | 6,335) | 7,144) | 7,586) | 8,401) | 7,238) | 4,881) | 5,858) | 7,258) | 6,926) | ||||||
| Current liabilities | 12,469) | 9,450) | 9,751) | 11,713) | 8,774) | 5,406) | 5,636) | 7,872) | 9,608) | 10,714) | 10,582) | 11,676) | 10,726) | 8,060) | 8,763) | 10,497) | 9,991) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Quick ratio1 | 0.79 | 0.77 | 0.83 | 0.81 | 0.83 | 0.90 | 1.05 | 0.99 | 0.66 | 0.67 | 0.72 | 0.72 | 0.67 | 0.61 | 0.67 | 0.69 | 0.69 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||
| Amazon.com Inc. | 0.48 | 0.68 | 0.64 | 0.76 | 0.63 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Home Depot Inc. | 0.37 | 0.47 | 0.68 | 0.69 | 0.48 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lowe’s Cos. Inc. | 0.31 | 0.28 | 0.52 | 0.60 | 0.34 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| TJX Cos. Inc. | 0.95 | 1.01 | 0.93 | 0.92 | 0.96 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 9,871 ÷ 12,469 = 0.79
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several significant trends in liquidity as indicated by total quick assets, current liabilities, and the quick ratio over the observed periods.
- Total Quick Assets
-
Total quick assets demonstrated considerable variability throughout the timeframe. Initially, there was a gradual decrease from March 2018 (6,926 million US$) to December 2018 (4,881 million US$). Following this trough, total quick assets recovered and fluctuated, reaching a notable peak at June 2021 (9,456 million US$) and again in March 2022 (9,871 million US$). This suggests periods of strengthening short-term liquidity especially in the later stages of the timeline.
- Current Liabilities
-
Current liabilities showed a general increase across the timeline with some fluctuations. Starting at 9,991 million US$ in March 2018, liabilities rose to a high of 11,713 million US$ by June 2021. After some decline in late 2021, current liabilities surged again to 12,469 million US$ by March 2022. This upward trend indicates an increasing short-term obligation burden over the years.
- Quick Ratio
-
The quick ratio, an indicator of short-term liquidity, remained below 1.0 in most quarters prior to 2020, fluctuating mostly between 0.61 and 0.72. Starting in the second quarter of 2020, a marked improvement is observed, with the quick ratio rising above 0.9 and peaking at 1.05. Subsequently, the ratio slightly declined but stayed above the pre-2020 levels, ending at 0.79 in March 2022. This suggests improved liquidity management, especially post-2020, despite rising current liabilities.
Overall, despite increasing current liabilities, the company exhibited improved liquidity starting in mid-2020 as evidenced by rising quick assets and a higher quick ratio. This improvement may reflect strategic adjustments to maintain sufficient liquid resources to meet short-term obligations. However, the recent decrease in the quick ratio since the mid-2021 peak points to a slight moderation in liquidity strength, warranting ongoing monitoring to ensure continued financial stability.
Cash Ratio
Expedia Group Inc., cash ratio calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cash and cash equivalents | 5,552) | 4,111) | 5,031) | 5,464) | 4,291) | 3,363) | 4,353) | 5,053) | 3,905) | 3,315) | 3,797) | 4,258) | 3,708) | 2,443) | 2,920) | 3,072) | 3,423) | ||||||
| Restricted cash and cash equivalents | 2,583) | 1,694) | 1,587) | 2,541) | 1,972) | 772) | 725) | 1,311) | 813) | 779) | 447) | 619) | 447) | 259) | 186) | 336) | 219) | ||||||
| Short-term investments | —) | 200) | —) | 11) | 23) | 24) | 23) | 422) | 194) | 526) | 658) | 631) | 466) | 28) | 458) | 1,491) | 1,031) | ||||||
| Total cash assets | 8,135) | 6,005) | 6,618) | 8,016) | 6,286) | 4,159) | 5,101) | 6,786) | 4,912) | 4,620) | 4,902) | 5,508) | 4,621) | 2,730) | 3,564) | 4,899) | 4,673) | ||||||
| Current liabilities | 12,469) | 9,450) | 9,751) | 11,713) | 8,774) | 5,406) | 5,636) | 7,872) | 9,608) | 10,714) | 10,582) | 11,676) | 10,726) | 8,060) | 8,763) | 10,497) | 9,991) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Cash ratio1 | 0.65 | 0.64 | 0.68 | 0.68 | 0.72 | 0.77 | 0.91 | 0.86 | 0.51 | 0.43 | 0.46 | 0.47 | 0.43 | 0.34 | 0.41 | 0.47 | 0.47 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||
| Amazon.com Inc. | 0.48 | 0.68 | 0.64 | 0.76 | 0.63 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Home Depot Inc. | 0.24 | 0.34 | 0.58 | 0.58 | 0.37 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lowe’s Cos. Inc. | 0.31 | 0.28 | 0.52 | 0.60 | 0.34 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| TJX Cos. Inc. | 0.89 | 0.97 | 0.90 | 0.87 | 0.92 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,135 ÷ 12,469 = 0.65
2 Click competitor name to see calculations.
The financial data for the examined periods indicates notable fluctuations in the company's liquidity position and short-term obligations. Total cash assets exhibited variability, with an initial decline from early 2018 through the end of that year, followed by a recovery and peaks observed during mid and late 2021 into early 2022. Specifically, cash holdings decreased markedly by the end of 2018 but began to increase again in 2019, reaching levels above previous years by 2021 and early 2022.
Current liabilities showed a pattern of overall growth with some oscillations. The liabilities grew from the beginning of 2018 toward the middle of 2019, followed by a dip throughout 2020, which could be interpreted as a reduction of short-term financial obligations during that year. However, liabilities increased significantly again in 2021 and surged further by the first quarter of 2022, surpassing all previous quarters within the observed timeline.
The cash ratio, a key liquidity metric indicative of the company’s ability to cover current liabilities with cash and cash equivalents, reflected these underlying asset and liability movements. Initially stable around 0.47 in early 2018, the ratio declined to a low point around 0.34 by the end of 2018, mirroring the drop in cash assets and elevated liabilities. There was a recovery in the ratio through 2019, highlighting improvements in liquidity, followed by a substantial rise during 2020, coinciding with decreased liabilities and increased cash holdings, peaking near 0.91.
Subsequently, the cash ratio trended downward from its peak in mid-2020 through 2022, reflecting the company’s rising current liabilities outpacing growth in cash assets during this period. Despite this decline, the ratio remained above levels seen before 2020, suggesting an overall stronger liquidity position compared to earlier years, albeit with some erosion in the most recent quarters. This trend suggests the company maintained a relatively strong buffer to cover short-term liabilities via liquid assets even as obligations expanded.
In summary, the company experienced a period of reduced liquidity by late 2018, followed by improved liquidity through 2019 and a strong cash position in 2020. This improvement likely resulted from prudent cash management and a reduction in obligations. The subsequent rise in liabilities and moderate decrease in the cash ratio throughout 2021 and early 2022 signal increased short-term financial commitments, though liquidity remains robust relative to the start of the examined timeframe.
- Total Cash Assets
- Decreased through 2018, recovered and peaked in 2021–2022.
- Current Liabilities
- Generally increased over time with a dip in 2020 and significant growth in 2021–2022.
- Cash Ratio
- Declined in 2018, improved sharply in 2020, then gradually decreased but stayed above pre-2020 levels.