TripAdvisor Inc (TRIP)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.27 | 2.38 | 2.63 | 2.37 | 1.23 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,297,000K ÷ $572,000K
= 2.27
The current ratio measures a company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates stronger liquidity and financial health.
TripAdvisor Inc.'s current ratio has fluctuated over the past five years. In 2019, the ratio stood at a relatively lower level of 1.23, suggesting potential liquidity concerns. However, the company improved its liquidity position significantly over the next few years, with the ratio reaching 2.63 in 2021.
In 2022, the current ratio slightly decreased to 2.38 before experiencing a further decline to 2.27 in 2023. Although the current ratio remains above 2 in recent years, indicating the company's ability to cover its short-term obligations comfortably, the downward trend suggests a potential reduction in liquidity compared to the peak in 2021.
Overall, while TripAdvisor Inc. has exhibited a generally healthy liquidity position with current ratios above 2 in the past five years, investors and analysts may want to monitor any further decreases in the current ratio as it could signal potential liquidity challenges for the company.
Peer comparison
Dec 31, 2023