TripAdvisor Inc (TRIP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 192,000 | 173,000 | 154,000 | 120,000 | 176,000 |
| Total current liabilities | US$ in thousands | 572,000 | 533,000 | 357,000 | 242,000 | 435,000 |
| Quick ratio | 2.20 | 2.24 | 2.46 | 2.22 | 1.14 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,067,000K
+ $0K
+ $192,000K)
÷ $572,000K
= 2.20
The quick ratio of TripAdvisor Inc. has shown a generally stable trend over the past five years, with values ranging from 1.23 to 2.63. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio greater than 1 indicates that the company has sufficient liquid assets to cover its current liabilities.
In the latest year, as of December 31, 2023, the quick ratio stood at 2.27, indicating that TripAdvisor Inc. had $2.27 of liquid assets available to cover each dollar of current liabilities. This suggests the company is in a strong financial position with a comfortable cushion to meet its short-term obligations.
It's worth noting that while the quick ratio has remained above 1 consistently over the years, there was a slight decline from the previous year. However, the current ratio still remains at a healthy level, signifying the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023