TripAdvisor Inc (TRIP)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,064,000 | 1,112,000 | 1,176,000 | 1,171,000 | 1,067,000 | 1,124,000 | 1,141,000 | 1,132,000 | 1,021,000 | 1,066,000 | 1,045,000 | 781,000 | 723,000 | 682,000 | 775,000 | 674,000 | 418,000 | 446,000 | 698,000 | 798,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 40,000 | 40,000 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 628,000 | 792,000 | 916,000 | 892,000 | 572,000 | 719,000 | 854,000 | 763,000 | 533,000 | 573,000 | 656,000 | 467,000 | 357,000 | 363,000 | 444,000 | 277,000 | 242,000 | 231,000 | 249,000 | 311,000 |
| Quick ratio | 1.69 | 1.40 | 1.28 | 1.31 | 1.87 | 1.56 | 1.34 | 1.48 | 1.92 | 1.86 | 1.59 | 1.67 | 2.03 | 1.88 | 1.75 | 2.43 | 1.89 | 2.10 | 2.80 | 2.57 |
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 of TripAdvisor Inc, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown fluctuations over the past few years. The ratio stood at a relatively healthy level of around 2.5 to 2.8 from March 2020 to June 2021, indicating that the company had ample quick assets to cover its current liabilities.
However, there was a noticeable decline in the quick ratio from June 2021 to June 2023, dropping to as low as 1.34. This downward trend suggests that TripAdvisor's liquidity position weakened during this period, potentially signaling challenges in meeting its short-term financial obligations using only its liquid assets.
By December 2024, the quick ratio had improved slightly to 1.69, but it still remained below the levels seen in the earlier years. This indicates that while the company's liquidity position had somewhat strengthened, there may still be room for improvement in ensuring that sufficient liquid assets are available to cover its short-term liabilities effectively.
Overall, the fluctuating trend in TripAdvisor Inc's quick ratio over the years underscores the importance of closely monitoring the company's liquidity position and implementing strategies to maintain a healthy balance between quick assets and short-term liabilities.
Peer comparison
Dec 31, 2024