TripAdvisor Inc (TRIP)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 92,000 | 126,000 | 101,000 | -131,000 | -285,000 |
| Total assets | US$ in thousands | 2,561,000 | 2,537,000 | 2,569,000 | 2,289,000 | 1,969,000 |
| Operating ROA | 3.59% | 4.97% | 3.93% | -5.72% | -14.47% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $92,000K ÷ $2,561,000K
= 3.59%
Based on the data provided, TripAdvisor Inc's operating return on assets (operating ROA) experienced fluctuations over the period from December 31, 2020, to December 31, 2024.
- As of December 31, 2020, the operating ROA was -14.47%, indicating that the company was generating a negative return on its assets from its core operations.
- By December 31, 2021, the operating ROA improved to -5.72%, but it still remained negative, suggesting ongoing challenges in asset utilization efficiency.
- Subsequently, there was a significant turnaround in performance, with the operating ROA becoming positive at 3.93% by December 31, 2022. This improvement may indicate enhanced operational effectiveness and profitability.
- The positive trend continued into December 31, 2023, with the operating ROA further increasing to 4.97%, reflecting potentially improved operational efficiency and profitability.
- However, by December 31, 2024, the operating ROA slightly decreased to 3.59%, suggesting a slight dip in the company's ability to generate returns from its assets compared to the previous year.
In summary, while TripAdvisor Inc initially faced challenges with negative operating ROA, the company managed to reverse the trend and achieve positive returns on its assets by optimizing its operational performance. It is essential for investors and stakeholders to monitor these fluctuations to assess the company's ongoing operational efficiency and financial performance.
Peer comparison
Dec 31, 2024