TripAdvisor Inc (TRIP)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Current ratio 2.10 2.27 2.38 2.63 2.37

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,320,000K ÷ $628,000K
= 2.10

The current ratio of TripAdvisor Inc has shown a relatively stable trend over the past five years. As of December 31, 2020, the current ratio was 2.37, indicating that the company had $2.37 in current assets for every $1 in current liabilities.

Subsequently, the current ratio increased to 2.63 by December 31, 2021, suggesting an improvement in the company's liquidity position. However, this ratio slightly declined to 2.38 by December 31, 2022, but still remained at a healthy level.

By December 31, 2023, the current ratio decreased further to 2.27, indicating a potential slight liquidity strain compared to previous years. The trend continued in the following year, with the current ratio dropping to 2.10 as of December 31, 2024.

Overall, despite some fluctuations, TripAdvisor Inc has maintained a current ratio above 2 throughout the period, signaling that the company has sufficient current assets to cover its short-term obligations. Monitoring this ratio in conjunction with other liquidity indicators would be beneficial for evaluating the company's financial health and ability to meet its short-term liabilities.