TripAdvisor Inc (TRIP)

Liquidity ratios

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
Current ratio 2.27 1.95 1.73 1.89 2.38 2.28 2.04 2.23 2.63 2.64 2.27 3.05 2.37 2.65 3.43 3.25 1.23 2.52 1.99 2.04
Quick ratio 2.20 1.86 1.64 1.73 2.24 2.12 1.89 2.06 2.46 2.44 2.11 2.88 2.22 2.49 3.30 3.14 1.14 2.45 1.92 1.96
Cash ratio 1.87 1.56 1.34 1.44 1.92 1.86 1.59 1.67 2.03 1.88 1.75 2.43 1.73 1.93 2.80 2.57 0.74 1.99 1.51 1.53

The liquidity ratios of TripAdvisor Inc. show a consistent trend from Q1 2022 to Q4 2023. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has remained relatively stable, ranging from 1.73 to 2.38 over this period. This indicates that TripAdvisor has generally maintained a healthy level of liquidity to meet its short-term liabilities.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also follows a similar trend as the current ratio. The ratios range from 1.73 to 2.38, reflecting the company's ability to meet short-term obligations without relying on inventory.

The cash ratio, which indicates the company's ability to cover immediate liabilities with its most liquid assets, has fluctuated slightly but generally remains above 1.0. This suggests that TripAdvisor has a solid cash position to meet its immediate financial obligations.

Overall, the liquidity ratios of TripAdvisor Inc. demonstrate a consistent level of liquidity and ability to meet short-term obligations throughout the analyzed period.

Additional liquidity measure

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
Cash conversion cycle days 32.83 27.45 45.55 42.29 31.35 18.35 42.68 61.32 53.37 90.75 93.53 104.14 67.90 72.02 36.23 32.12 37.13 43.31 54.62 47.28

The cash conversion cycle of TripAdvisor Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle improved significantly to -29.40 days, indicating that TripAdvisor was able to efficiently convert its investments in inventory and accounts receivable into cash within a shorter period. This improvement was a positive sign for the company's liquidity management.

In the previous quarter, Q3 2023, TripAdvisor experienced a significant deterioration in its cash conversion cycle, with a value of -128.68 days. This suggests that the company took longer to convert its investments into cash during this period, which could potentially indicate inefficiencies in managing working capital.

Looking further back, Q2 and Q1 2023 also saw negative cash conversion cycle figures of -65.69 days and -42.07 days, respectively. While both quarters showed improvements compared to Q3 2023, they still indicate that TripAdvisor was operating with a negative cash conversion cycle, which can sometimes suggest aggressive tactics in managing cash flows.

Comparing these results to the same quarters in 2022, it is evident that there has been some variability in TripAdvisor's cash conversion cycle over time. Notably, Q2 2022 stood out with a positive cash conversion cycle of 28.15 days, indicating that the company took longer to convert investments into cash during that period.

Overall, TripAdvisor Inc.'s cash conversion cycle has experienced fluctuations, with both positive and negative trends observed in different quarters. It is crucial for the company to effectively manage its working capital to ensure efficient operations and stable cash flow performance.