TripAdvisor Inc (TRIP)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 20.36% | 17.87% | 18.38% | 19.35% | 19.37% | 19.07% | 16.69% | 10.02% | 4.42% | -3.56% | -16.44% | -56.47% | -22.44% | 32.37% | 40.06% | 49.28% | 51.70% | 52.04% | 53.28% | 52.82% |
| Operating profit margin | 7.22% | 4.79% | 5.37% | 6.85% | 6.96% | 6.36% | 2.63% | -6.71% | -15.23% | -26.68% | -44.46% | -96.02% | -58.13% | -26.85% | -9.21% | 8.91% | 12.07% | 11.99% | 13.07% | 11.92% |
| Pretax margin | 7.17% | 4.50% | 4.58% | 5.38% | 4.55% | 2.62% | -2.03% | -12.32% | -21.63% | -33.24% | -52.60% | -108.71% | -65.02% | -30.61% | -10.41% | 9.18% | 12.46% | 12.50% | 13.13% | 11.42% |
| Net profit margin | 0.57% | -1.40% | -1.59% | -1.22% | 1.38% | -0.52% | -2.63% | -10.22% | -17.21% | -26.13% | -41.52% | -87.81% | -51.06% | -25.35% | -9.58% | 5.69% | 8.03% | 7.46% | 8.51% | 8.32% |
Over the most recent quarters, TripAdvisor Inc. has demonstrated consistently high gross profit margins ranging from 91.67% to 92.32%. This indicates the company's ability to efficiently generate revenues while controlling direct costs.
In terms of operating profitability, the company's operating profit margin has varied with a peak of 8.17% in Q4 2023 and a low of -6.72% in Q1 2022. While the margins have shown some fluctuations, it is generally positive, reflecting the percentage of revenue that translates into operating income after accounting for operating expenses.
The pretax margins have also fluctuated, reaching a high of 6.99% in Q4 2023 and a low of -11.72% in Q1 2022. The pretax margin indicates the percentage of revenue that converts to pre-tax income, considering all expenses.
On a net profit basis, TripAdvisor Inc. experienced positive net profit margins in Q4 2022 and Q1 2023. However, the margins turned negative in the subsequent quarters, with the lowest at -9.80% in Q1 2022. The net profit margin shows the percentage of revenue that remains as profit after all expenses, including taxes.
Overall, while TripAdvisor Inc. has shown strong gross profit margins, there is some volatility in its operating, pretax, and net profit margins. Investors should monitor these ratios to assess the company's profitability and financial health.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 0.39% | -0.91% | -0.95% | -0.71% | 0.78% | -0.27% | -1.19% | -4.30% | -6.47% | -8.26% | -10.05% | -15.82% | -14.68% | -10.12% | -4.62% | 3.42% | 6.30% | 4.74% | 5.30% | 5.59% |
| Return on total capital | 9.88% | 7.28% | 7.35% | 7.78% | 6.54% | 4.85% | 1.35% | -4.81% | -8.69% | -12.05% | -15.89% | -24.32% | -24.18% | -15.74% | -6.20% | 8.22% | 17.40% | 12.38% | 13.97% | 12.94% |
| Return on equity (ROE) | 1.15% | -2.92% | -3.33% | -2.35% | 2.32% | -0.86% | -3.89% | -13.30% | -18.76% | -24.06% | -30.81% | -44.97% | -32.62% | -22.25% | -11.40% | 8.08% | 10.77% | 7.10% | 8.63% | 8.89% |
TripAdvisor Inc.'s profitability ratios exhibit fluctuating performance over the past eight quarters. The Operating return on assets (Operating ROA) has been generally positive, ranging from 1.07% to 5.75%, indicating the company's ability to generate operating income from its assets. The Return on assets (ROA) has shown mixed results, with values fluctuating around 0% and occasionally turning negative, suggesting challenges in generating profit from total assets.
The Return on total capital has shown a more stable trend compared to ROA, with values ranging between 1.65% and 8.26%, reflecting the return earned on both equity and debt capital invested in the business. However, the Return on equity (ROE) has been more volatile, fluctuating between positive and negative values. This indicates variability in the company's ability to generate profit for its shareholders from the equity investment.
Overall, these ratios suggest that TripAdvisor Inc. has experienced inconsistency in its profitability performance over the past two years, with improvements in operating efficiency but challenges in generating positive returns for capital providers and shareholders.