TripAdvisor Inc (TRIP)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,744,000 | 1,712,000 | 1,638,000 | 1,561,000 | 1,451,000 | 1,337,000 | 1,180,000 | 998,000 | 860,000 | 731,000 | 578,000 | 402,000 | 566,000 | 797,000 | 1,086,000 | 1,459,000 | 1,557,000 | 1,568,000 | 1,599,000 | 1,611,000 |
| Total current assets | US$ in thousands | 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 | 533,000 | 1,181,000 | 1,271,000 | 1,082,000 |
| Total current liabilities | US$ in thousands | 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 | 435,000 | 468,000 | 638,000 | 530,000 |
| Working capital turnover | 2.41 | 2.51 | 2.62 | 2.31 | 1.97 | 1.82 | 1.73 | 1.73 | 1.48 | 1.22 | 1.03 | 0.71 | 1.71 | 2.09 | 1.80 | 2.08 | 15.89 | 2.20 | 2.53 | 2.92 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,744,000K ÷ ($1,297,000K – $572,000K)
= 2.41
The working capital turnover for TripAdvisor Inc. has shown a steady increase over the quarters, indicating an improvement in the efficiency of the company in generating revenue using its working capital. The ratio has steadily increased from 2.02 in Q4 2022 to 2.47 in Q4 2023. This signifies that the company is generating $2.47 in revenue for every dollar of working capital invested in the business in Q4 2023, compared to $2.02 in Q4 2022.
The upward trend in working capital turnover suggests that TripAdvisor Inc. has been managing its working capital more effectively in recent quarters, which may be attributed to more efficient inventory management, better accounts receivable and payable practices, or improved overall operational efficiency. This could potentially lead to increased profitability and liquidity for the company in the future.
Peer comparison
Dec 31, 2023