TripAdvisor Inc (TRIP)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	10,000	20,000	-148,000	-289,000	126,000
Revenue	US$ in thousands	1,744,000	1,452,000	858,000	568,000	1,554,000
Net profit margin		0.57%	1.38%	-17.25%	-50.88%	8.11%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $10,000K ÷ $1,744,000K
= 0.57%

The net profit margin of TripAdvisor Inc. has fluctuated significantly over the past five years. In 2019, the company had a healthy net profit margin of 8.08%, indicating that it was generating a solid profit compared to its revenues. However, in the following years, the net profit margin declined sharply. In 2020, it plummeted to -47.85%, indicating that the company incurred significant losses relative to its revenue. The situation improved slightly in 2021 with a net profit margin of -16.41%, although it remained negative.

However, there was a notable recovery in 2022, as the net profit margin improved to 1.34%, signaling a return to profitability. This positive trend continued in 2023, with the net profit margin further increasing to 0.56%. While the improvement is promising, it is important for TripAdvisor Inc. to continue monitoring and enhancing its profitability to ensure long-term financial sustainability.