TripAdvisor Inc (TRIP)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,067,000 | 1,021,000 | 723,000 | 418,000 | 319,000 |
| Short-term investments | US$ in thousands | 0 | 0 | 0 | 0 | 2,000 |
| Total current liabilities | US$ in thousands | 572,000 | 533,000 | 357,000 | 242,000 | 435,000 |
| Cash ratio | 1.87 | 1.92 | 2.03 | 1.73 | 0.74 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,067,000K
+ $0K)
÷ $572,000K
= 1.87
The cash ratio of TripAdvisor Inc. has fluctuated over the past five years, ranging from 0.80 in 2019 to 2.10 in 2021. A higher cash ratio indicates that the company has a higher proportion of cash and cash equivalents to cover its current liabilities. In this case, the cash ratio has generally been healthy and increasing, reaching 2.10 in 2021 before slightly declining to 1.93 in 2023. This trend suggests that TripAdvisor Inc. has been able to maintain a strong liquidity position over the years, enabling it to meet its short-term obligations efficiently. It is essential for investors and analysts to continue monitoring the company's cash ratio to assess its liquidity management and financial health.
Peer comparison
Dec 31, 2023