TripAdvisor Inc (TRIP)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 2.65 | 2.47 | 2.02 | 1.55 | 1.82 |
Activity ratios provide insight into how efficiently a company is managing its resources to generate sales and cash flow. Let's delve into the activity ratios of TripAdvisor Inc based on the provided data:
1. Inventory Turnover: The inventory turnover ratio indicates how many times a company's inventory is sold and replaced during a period. In this case, no specific data is available for TripAdvisor Inc's inventory turnover for the years 2020 to 2024. This might suggest either a relatively low emphasis on inventory management or the nature of its business model.
2. Receivables Turnover: The receivables turnover ratio measures how quickly a company collects cash from its credit sales. Similar to inventory turnover, there is no data provided for TripAdvisor Inc's receivables turnover for the years 2020 to 2024. The absence of this information makes it challenging to assess the effectiveness of the company in collecting payments from its customers.
3. Payables Turnover: The payables turnover ratio evaluates how efficiently a company is paying its suppliers. Unfortunately, there is no data available for TripAdvisor Inc's payables turnover for the years 2020 to 2024. Without this information, it is difficult to gauge the company's payment practices and relationships with its suppliers.
4. Working Capital Turnover: The working capital turnover ratio assesses how effectively a company utilizes its working capital to generate sales. The data shows an increasing trend in TripAdvisor Inc's working capital turnover from 1.82 in 2020 to 2.65 in 2024. This indicates that the company is becoming more efficient in utilizing its working capital to generate sales over the years, which is a positive sign of operational efficiency and effective management of resources.
Overall, while the working capital turnover ratio demonstrates positive improvement, the lack of specific data for inventory turnover, receivables turnover, and payables turnover limits a comprehensive evaluation of TripAdvisor Inc's efficiency in managing its inventory, collecting payments from customers, and paying suppliers.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for TripAdvisor Inc, the activity ratios can provide insights into the company's efficiency in managing its inventory, sales, and payables.
1. Days of Inventory on Hand (DOH):
Unfortunately, there is no specific data available for the Days of Inventory on Hand for TripAdvisor Inc for the years 2020 to 2024. DOH indicates the average number of days a company holds its inventory before selling it. A lower DOH value typically suggests efficient inventory management, minimizing carrying costs and potential obsolescence.
2. Days of Sales Outstanding (DSO):
Similar to DOH, there is no data provided for the Days of Sales Outstanding for TripAdvisor Inc for the years 2020 to 2024. DSO represents the average number of days it takes for a company to collect revenue after a sale. A lower DSO indicates effective accounts receivable management and timely collection of sales, improving cash flow.
3. Number of Days of Payables:
Unfortunately, there is no specific information regarding the Number of Days of Payables for TripAdvisor Inc for the years 2020 to 2024. This ratio highlights the average time a company takes to pay its suppliers. A higher number of days of payables may indicate that the company is taking longer to settle its obligations, potentially indicating a liquidity advantage.
Overall, without the specific data for DOH, DSO, and the Number of Days of Payables, a detailed analysis of TripAdvisor Inc's activity ratios and the efficiency of its operations cannot be provided. To gain a better understanding of how TripAdvisor Inc is managing its inventory, sales, and payables, access to the missing data points would be necessary.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 7.69 | 3.51 | 2.52 |
| Total asset turnover | 0.72 | 0.70 | 0.58 | 0.39 | 0.31 |
For TripAdvisor Inc, the Fixed Asset Turnover ratio has seen a positive trend over the years, increasing from 2.52 in December 2020 to 3.51 in December 2021, and further to 7.69 in December 2022. This indicates that the company has been able to generate more revenue relative to its investment in fixed assets, showcasing improved efficiency in asset utilization.
On the other hand, the Total Asset Turnover ratio has also displayed a consistent upward trajectory, climbing from 0.31 in December 2020 to 0.72 in December 2024. This signifies that TripAdvisor Inc has been successful in generating sales in relation to its total assets, highlighting its ability to efficiently utilize all assets to generate revenue.
Overall, both ratios indicate that TripAdvisor Inc has been effectively managing its assets to generate revenue, with the increasing trends showcasing improved efficiency and productivity over the years.