TripAdvisor Inc (TRIP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 92.86% | 91.67% | 92.23% | 91.80% | 90.89% |
| Operating profit margin | 5.01% | 7.05% | 6.77% | -14.52% | -47.19% |
| Pretax margin | 4.74% | 6.99% | 4.49% | -20.51% | -61.09% |
| Net profit margin | 0.27% | 0.56% | 1.34% | -16.41% | -47.85% |
TripAdvisor Inc has shown an improvement in its gross profit margins over the years, with figures increasing from 90.89% in 2020 to 92.86% in 2024. This indicates that the company is effectively managing its cost of goods sold.
In terms of operating profit margin, TripAdvisor Inc has made significant progress from a negative margin of -47.19% in 2020 to a positive margin of 5.01% in 2024. This suggests that the company has been able to control its operating expenses more efficiently.
The trend continues in the pretax margin, transitioning from a negative margin of -61.09% in 2020 to a positive margin of 4.74% in 2024. This indicates that TripAdvisor Inc has been able to generate more income before accounting for taxes.
Finally, the net profit margin has also shown improvement, moving from a negative margin of -47.85% in 2020 to a positive margin of 0.27% in 2024. This reflects the company's ability to increase profitability after all expenses have been taken into account.
Overall, the profitability ratios of TripAdvisor Inc have been trending positively, showcasing enhanced efficiency in managing costs and generating profits over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.59% | 4.97% | 3.93% | -5.72% | -14.47% |
| Return on assets (ROA) | 0.20% | 0.39% | 0.78% | -6.47% | -14.68% |
| Return on total capital | 14.10% | 19.40% | 12.89% | -17.74% | -37.70% |
| Return on equity (ROE) | 0.53% | 1.15% | 2.32% | -18.76% | -32.62% |
TripAdvisor Inc's profitability ratios have shown variability over the past five years.
- The Operating Return on Assets (Operating ROA) was negative in 2020 and 2021, indicating that the company's operating income generated from its assets was insufficient to cover the total assets. However, there has been an improvement in 2022 with a positive Operating ROA of 3.93%, which increased further to 4.97% in 2023 before declining slightly to 3.59% in 2024.
- The Return on Assets (ROA) also exhibited negative values in 2020 and 2021, implying that the company's overall profitability in relation to its total assets was poor. The ROA improved slightly in 2022 and 2023, though remaining low, and decreased further in 2024 to 0.20%.
- The Return on Total Capital indicates the return earned by the company on both equity and debt capital. The ratio was highly negative in 2020 and 2021, but experienced a significant improvement in 2022 with a return of 12.89%, which further increased to 19.40% in 2023 and then slightly declined to 14.10% in 2024.
- The Return on Equity (ROE) demonstrated a similar trend to the other profitability ratios, with negative values in 2020 and 2021. There was a modest improvement in 2022 and 2023, although the ROE remained relatively low, and decreased further in 2024 to 0.53%.
Overall, it can be seen that TripAdvisor Inc has made progress in improving its profitability ratios over the years, with some fluctuations in performance, but the company still has room for enhancement to ensure sustainable profitability and satisfactory returns for its stakeholders.