TripAdvisor Inc (TRIP)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,389,000 | 1,171,000 | 822,000 | 713,000 | 996,000 |
| Payables | US$ in thousands | 28,000 | 39,000 | 27,000 | 18,000 | 11,000 |
| Payables turnover | 49.61 | 30.03 | 30.44 | 39.61 | 90.55 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,389,000K ÷ $28,000K
= 49.61
The payables turnover ratio measures how efficiently a company is managing its trade payables. The higher the ratio, the quicker the company is paying off its suppliers.
In the case of TripAdvisor Inc., the payables turnover has fluctuated over the past five years. In 2019, the company had a high payables turnover of 8.55, indicating that it was paying off its suppliers at a relatively faster rate. However, in the subsequent years, the payables turnover decreased, reaching its lowest point in 2021 at 2.74. This suggests that the company took longer to pay off its suppliers during those years.
The payables turnover ratio then increased in 2022 to 2.97 and further improved in 2023 to 5.32. This uptrend indicates that TripAdvisor Inc. has been managing its trade payables more effectively, paying off its suppliers at a faster pace in the most recent years.
Overall, the improving trend in payables turnover for TripAdvisor Inc. is a positive indication of the company's ability to efficiently manage its payments to suppliers, potentially improving its relationships with vendors and enhancing its cash flow management.
Peer comparison
Dec 31, 2023