TripAdvisor Inc (TRIP)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 943,000 | 871,000 | 861,000 | 789,000 | 886,000 |
| ROE | 0.53% | 1.15% | 2.32% | -18.76% | -32.62% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $5,000K ÷ $943,000K
= 0.53%
TripAdvisor Inc's return on equity (ROE) has shown a fluctuating trend over the years based on the data provided. In December 31, 2020, the ROE was negative at -32.62%, indicating that the company's net income was insufficient to generate a positive return for shareholders' equity.
However, there was an improvement in the ROE by the end of 2021, with the percentage less negative at -18.76%. This suggests the company was able to enhance its profitability relative to its equity base. By December 31, 2022, TripAdvisor Inc achieved a positive ROE of 2.32%, indicating that the company generated a profit that exceeded its equity investment.
In the subsequent years, the ROE continued to gradually decrease. By December 31, 2023, the ROE stood at 1.15%, signifying a slight decline in profitability compared to the previous year. By the end of 2024, TripAdvisor Inc's ROE further decreased to 0.53%, indicating a lower return relative to its equity.
Overall, the trend in TripAdvisor Inc's ROE reflects fluctuations in the company's profitability and efficiency in generating returns for its shareholders. It is essential for the management to closely monitor and address the factors influencing ROE to sustain and improve the company's financial performance in the future.
Peer comparison
Dec 31, 2024