TripAdvisor Inc (TRIP)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 126,000 | 82,000 | 88,000 | 107,000 | 101,000 | 85,000 | 31,000 | -67,000 | -131,000 | -195,000 | -257,000 | -386,000 | -329,000 | -214,000 | -100,000 | 130,000 | 188,000 | 188,000 | 209,000 | 192,000 |
| Total assets | US$ in thousands | 2,537,000 | 2,636,000 | 2,734,000 | 2,684,000 | 2,569,000 | 2,565,000 | 2,612,000 | 2,372,000 | 2,289,000 | 2,312,000 | 2,387,000 | 2,232,000 | 1,969,000 | 1,996,000 | 2,249,000 | 2,427,000 | 1,984,000 | 2,468,000 | 2,566,000 | 2,395,000 |
| Operating ROA | 4.97% | 3.11% | 3.22% | 3.99% | 3.93% | 3.31% | 1.19% | -2.82% | -5.72% | -8.43% | -10.77% | -17.29% | -16.71% | -10.72% | -4.45% | 5.36% | 9.48% | 7.62% | 8.14% | 8.02% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $126,000K ÷ $2,537,000K
= 4.97%
Operating Return on Assets (Operating ROA) is a key profitability ratio that indicates how efficiently a company generates profits from its assets used in its core operations. A higher operating ROA indicates better profitability and efficiency in asset utilization.
Analyzing the trend of TripAdvisor Inc.'s Operating ROA from Q1 2022 to Q4 2023 gives insights into the company's performance. The Operating ROA has shown fluctuating performance over the period:
- In Q1 2022, the Operating ROA was -2.95%, indicating that the company incurred losses from its core operations compared to its asset base.
- Throughout Q2 and Q3 2022, the Operating ROA continued to improve, reaching 1.07% in Q2 2022 and further increasing to 3.20% in Q3 2022, signaling progress in profitability and asset efficiency.
- However, in Q4 2022, the Operating ROA slightly decreased to 3.85%, potentially indicating a slight dip in profitability.
- The trend reversed in Q1 2023, with the Operating ROA jumping to 3.91%, showcasing enhanced profitability compared to the previous quarter.
- The positive trajectory continued in Q2 and Q3 2023, with Operating ROA reaching 3.15% and 3.72%, respectively.
- Finally, in Q4 2023, TripAdvisor Inc. achieved the highest Operating ROA of 5.75% in the analyzed period, suggesting significant improvement in profitability and efficient use of assets.
Overall, the trend indicates a mix of fluctuations and improvements in operating profitability and asset efficiency for TripAdvisor Inc. throughout the analyzed period, culminating in a notable surge in Operating ROA by Q4 2023. This positive trend in Operating ROA reflects well on the company's management of its operational assets to drive profitability.
Peer comparison
Dec 31, 2023