TripAdvisor Inc (TRIP)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,000 | 10,000 | 20,000 | -148,000 | -289,000 |
| Total assets | US$ in thousands | 2,561,000 | 2,537,000 | 2,569,000 | 2,289,000 | 1,969,000 |
| ROA | 0.20% | 0.39% | 0.78% | -6.47% | -14.68% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $5,000K ÷ $2,561,000K
= 0.20%
TripAdvisor Inc's return on assets (ROA) has shown a significant improvement over the years based on the provided data. In December 2020, the ROA stood at -14.68%, indicating that the company's assets were not efficiently utilized to generate profits. However, by December 2024, the ROA had improved to 0.20%, indicating that the company's profitability in relation to its assets has increased.
The upward trend in ROA from negative values to positive values suggests that TripAdvisor Inc has been able to enhance its operational efficiency and effectiveness in utilizing its assets to generate profits. This improvement may signal better management of resources, higher productivity, or strategic shifts that have positively impacted the company's financial performance.
It is worth noting that while the ROA has improved, it is still relatively low compared to industry benchmarks. TripAdvisor Inc may need to continue focusing on optimizing its asset utilization and profitability to achieve greater financial sustainability and competitiveness in the market.
Peer comparison
Dec 31, 2024