TripAdvisor Inc (TRIP)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,064,000 | 1,067,000 | 1,021,000 | 723,000 | 418,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 40,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 628,000 | 572,000 | 533,000 | 357,000 | 242,000 |
| Quick ratio | 1.69 | 1.87 | 1.92 | 2.03 | 1.89 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,064,000K
+ $—K
+ $—K)
÷ $628,000K
= 1.69
The quick ratio, also known as the acid-test ratio, reflects TripAdvisor Inc's short-term liquidity and ability to meet its immediate financial obligations without relying on the sale of inventory.
Over the past five years, TripAdvisor's quick ratio has shown a consistent pattern of staying comfortably above the industry benchmark of 1. This indicates that the company has a strong ability to cover its short-term liabilities with its most liquid assets.
In 2021, the quick ratio improved to 2.03, signaling a strong liquidity position, potentially resulting from effective working capital management or increased cash reserves. However, in 2024, the quick ratio decreased to 1.69, which could indicate a slight weakening in the company's ability to meet short-term obligations without liquidating inventory.
Overall, TripAdvisor Inc maintains a healthy quick ratio, showing a solid liquidity position throughout the years analyzed, which suggests that the company has adequate short-term financial resources to support its operations.
Peer comparison
Dec 31, 2024