Can Expedia Group, Inc.’s (NASDAQ:EXPE) ROE Continue To Surpass The Industry Average?

One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. By way of learning-by-doing, we’ll look at ROE to gain a better understanding of Expedia Group, Inc. (NASDAQ:EXPE).

Return on equity or ROE is a key measure used to assess how efficiently a company’s management is utilizing the company’s capital. Put another way, it reveals the company’s success at turning shareholder investments into profits.

View our latest analysis for Expedia Group

How Do You Calculate Return On Equity?

The formula for ROE is:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity

So, based on the above formula, the ROE for Expedia Group is:

41% = US$1.1b ÷ US$2.6b (Based on the trailing twelve months to September 2024).

The ‘return’ is the income the business earned over the last year. Another way to think of that is that for…