TripAdvisor Inc (TRIP)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,835,000 | 1,814,000 | 1,815,000 | 1,812,000 | 1,788,000 | 1,752,000 | 1,678,000 | 1,601,000 | 1,492,000 | 1,379,000 | 1,223,000 | 1,041,000 | 902,000 | 777,000 | 625,000 | 449,000 | 604,000 | 823,000 | 1,100,000 | 1,463,000 |
| Total current assets | US$ in thousands | 1,320,000 | 1,463,000 | 1,539,000 | 1,511,000 | 1,297,000 | 1,401,000 | 1,478,000 | 1,439,000 | 1,270,000 | 1,309,000 | 1,337,000 | 1,043,000 | 940,000 | 960,000 | 1,006,000 | 845,000 | 573,000 | 613,000 | 853,000 | 1,012,000 |
| Total current liabilities | US$ in thousands | 628,000 | 792,000 | 916,000 | 892,000 | 572,000 | 719,000 | 854,000 | 763,000 | 533,000 | 573,000 | 656,000 | 467,000 | 357,000 | 363,000 | 444,000 | 277,000 | 242,000 | 231,000 | 249,000 | 311,000 |
| Working capital turnover | 2.65 | 2.70 | 2.91 | 2.93 | 2.47 | 2.57 | 2.69 | 2.37 | 2.02 | 1.87 | 1.80 | 1.81 | 1.55 | 1.30 | 1.11 | 0.79 | 1.82 | 2.15 | 1.82 | 2.09 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,835,000K ÷ ($1,320,000K – $628,000K)
= 2.65
Working capital turnover measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio indicates better operational efficiency.
Based on the provided data for TripAdvisor Inc, the working capital turnover ratio has fluctuated over time. It was relatively stable around 1.8 to 2.2 from March 2020 to December 2022, indicating that the company effectively utilized its working capital to support its operations during this period.
A significant decline in the working capital turnover ratio was observed in the first quarter of 2023, dropping to 0.79. This substantial decrease could suggest inefficiencies in managing working capital, which may have impacted the company's ability to generate sales from its current assets.
However, the working capital turnover ratio improved in the following quarters, gradually increasing to 2.93 by March 2024. This upward trend indicates that TripAdvisor Inc enhanced its efficiency in utilizing working capital to drive sales growth, potentially through better inventory management, receivables collection, or payment practices.
Overall, the analysis of TripAdvisor Inc's working capital turnover highlights the company's ability to optimize its working capital resources for generating sales revenue, with fluctuations observed over time reflecting changes in operational efficiency and financial management strategies.
Peer comparison
Dec 31, 2024