TripAdvisor Inc (TRIP)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 1,744,000 1,452,000 858,000 568,000 1,554,000
Total current assets US$ in thousands 1,297,000 1,270,000 940,000 573,000 533,000
Total current liabilities US$ in thousands 572,000 533,000 357,000 242,000 435,000
Working capital turnover 2.41 1.97 1.47 1.72 15.86

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,744,000K ÷ ($1,297,000K – $572,000K)
= 2.41

Working capital turnover represents the efficiency of TripAdvisor Inc. in utilizing its working capital to generate sales revenue. The trend in working capital turnover over the past five years shows fluctuation. In 2019, the company achieved an exceptionally high working capital turnover of 15.92, indicating an efficient utilization of working capital to generate sales. However, in the subsequent years, the working capital turnover decreased, reaching its lowest point in 2021 at 1.55, before slightly improving in 2022 and 2023.

A higher working capital turnover generally suggests that the company is efficiently managing its working capital to support sales activities. Conversely, a decreasing trend in working capital turnover may indicate inefficiencies in working capital management, potentially resulting in underutilization of assets and reduced sales generation.

It is advisable for TripAdvisor Inc. to closely monitor its working capital turnover and assess the effectiveness of its working capital management strategies to ensure optimal utilization of resources and maximize sales generation efficiency.


Peer comparison

Dec 31, 2023