TripAdvisor Inc (TRIP)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 126,000 | 101,000 | -131,000 | -329,000 | 187,000 |
| Total assets | US$ in thousands | 2,537,000 | 2,569,000 | 2,289,000 | 1,969,000 | 1,984,000 |
| Operating ROA | 4.97% | 3.93% | -5.72% | -16.71% | 9.43% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $126,000K ÷ $2,537,000K
= 4.97%
The operating return on assets (Operating ROA) of TripAdvisor Inc. has fluctuated over the past five years. In 2023, the company's operating ROA improved to 5.75%, up from 3.85% in 2022. This indicates that the company generated $0.0575 in operating income for every $1 of assets it owns in 2023.
Furthermore, the increase in the operating ROA from 2022 to 2023 suggests that TripAdvisor Inc. has become more efficient in utilizing its assets to generate operating profits.
Comparing the most recent figures to those from 2019, when the company achieved an operating ROA of 9.38%, we observe a significant decline in profitability. However, it is noteworthy that in 2021 and 2020, the company experienced negative operating ROA figures, indicating operational challenges and inefficiencies during those periods.
Overall, the trend in operating ROA for TripAdvisor Inc. reflects a mix of performance fluctuations and improvements in asset utilization efficiency, with the company demonstrating better profitability in 2023 compared to the previous years. It is essential for the company to sustain this positive momentum and continue enhancing its operational efficiency to generate higher returns on its assets in the future.
Peer comparison
Dec 31, 2023