TripAdvisor Inc (TRIP)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,389,000 | 1,406,000 | 1,337,000 | 1,259,000 | 1,170,000 | 1,082,000 | 983,000 | 898,000 | 822,000 | 757,000 | 673,000 | 629,000 | 693,000 | 760,000 | 872,000 | 961,000 | 973,000 | 967,000 | 958,000 | 968,000 |
| Payables | US$ in thousands | 28,000 | 70,000 | 47,000 | 34,000 | 39,000 | 67,000 | 50,000 | 12,000 | 27,000 | 22,000 | 15,000 | 13,000 | 18,000 | 14,000 | 13,000 | 34,000 | 11,000 | 16,000 | 13,000 | 11,000 |
| Payables turnover | 49.61 | 20.09 | 28.45 | 37.03 | 30.00 | 16.15 | 19.66 | 74.83 | 30.44 | 34.41 | 44.87 | 48.38 | 38.50 | 54.29 | 67.08 | 28.26 | 88.45 | 60.44 | 73.69 | 88.00 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,389,000K ÷ $28,000K
= 49.61
The payables turnover ratio measures how efficiently a company is managing its payables by evaluating how many times a company pays off its average accounts payable balance during a specific period.
Analyzing TripAdvisor Inc.'s payables turnover ratio over the past eight quarters, we observe fluctuations in the efficiency of the company's payables management. In Q4 2023, the payables turnover ratio stands at 5.32, indicating that TripAdvisor paid off its average accounts payable balance approximately 5.32 times during the quarter. This represents a significant improvement compared to previous quarters, highlighting a more efficient management of payables.
In Q3 2023, the payables turnover ratio dropped to 2.06, reflecting a decline in the efficiency of payables management from the previous quarter. However, this was followed by an increase in Q2 2023 to 2.83, indicating a moderate improvement. The ratio further increased in Q1 2023 to 3.62, reflecting favorable payables management efficiency.
Comparing the current ratio to the same quarter in the previous year, we can see an improvement from Q4 2022 (2.97) to Q4 2023 (5.32), indicating enhanced efficiency in managing payables over the year.
Overall, while the payables turnover ratio has shown fluctuations over the past eight quarters, the recent improvement in Q4 2023 suggests that TripAdvisor Inc. has been more efficient in managing its accounts payable compared to the previous quarters and the same quarter in the previous year. Investors and analysts may view this positively as it indicates better utilization of working capital and potentially improved supplier relationships.
Peer comparison
Dec 31, 2023