TripAdvisor Inc (TRIP)
Return on assets (ROA)
| 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 |
| Total assets | US$ in thousands | 2,537,000 | 2,569,000 | 2,289,000 | 1,969,000 | 1,984,000 |
| ROA | 0.39% | 0.78% | -6.47% | -14.68% | 6.35% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $10,000K ÷ $2,537,000K
= 0.39%
TripAdvisor Inc.'s return on assets (ROA) has experienced significant fluctuations over the past five years. In 2023, the ROA stands at 0.39%, representing a decline compared to the previous year where it was at 0.78%. The downward trend in ROA since 2019 is noticeable, as the company reported negative ROA figures in both 2021 (-6.47%) and 2020 (-14.68%). However, in 2019, TripAdvisor Inc. achieved a robust ROA of 6.35%.
The substantial variation in ROA may indicate challenges in efficiently utilizing the company's assets to generate profits. The negative ROA figures in 2021 and 2020 suggest that TripAdvisor Inc. experienced difficulties in generating earnings relative to the size of its asset base during those years. The notable improvement in 2022, followed by a decrease in 2023, indicates fluctuations in the company's asset management efficiency.
Overall, the trend in TripAdvisor Inc.'s ROA highlights the importance of closely monitoring the company's ability to generate profits from its assets consistently. Management may need to focus on improving operational efficiency and revenue generation strategies to enhance ROA in the future.
Peer comparison
Dec 31, 2023