TripAdvisor Inc (TRIP)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,835,000 | 1,788,000 | 1,492,000 | 902,000 | 604,000 |
| Total current assets | US$ in thousands | 1,320,000 | 1,297,000 | 1,270,000 | 940,000 | 573,000 |
| Total current liabilities | US$ in thousands | 628,000 | 572,000 | 533,000 | 357,000 | 242,000 |
| Working capital turnover | 2.65 | 2.47 | 2.02 | 1.55 | 1.82 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,835,000K ÷ ($1,320,000K – $628,000K)
= 2.65
Working capital turnover measures a company's ability to efficiently generate revenue from its working capital. A higher turnover ratio indicates effective management of working capital.
For TripAdvisor Inc, the working capital turnover has shown an improving trend over the past five years. In 2020, the ratio was 1.82, which means the company generated $1.82 in sales for every dollar of working capital invested. However, by 2024, this ratio had increased to 2.65, indicating that the company was able to generate $2.65 in sales for each dollar of working capital.
This upward trend suggests that TripAdvisor Inc has been utilizing its working capital more efficiently over the years, potentially optimizing its cash flow and liquidity management. Additionally, a higher turnover ratio could also indicate that the company is effectively managing its inventory, accounts receivable, and accounts payable to support its operations and revenue generation.
Peer comparison
Dec 31, 2024