TripAdvisor Inc (TRIP)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 133,000 | 169,000 | 111,000 | -140,000 | -334,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 943,000 | 871,000 | 861,000 | 789,000 | 886,000 |
| Return on total capital | 14.10% | 19.40% | 12.89% | -17.74% | -37.70% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $133,000K ÷ ($—K + $943,000K)
= 14.10%
The return on total capital for TripAdvisor Inc has exhibited significant fluctuations over the past five years. In December 2020, the return on total capital was -37.70%, indicating that the company generated a negative return relative to its total capital. By December 2021, there was an improvement as the return on total capital improved to -17.74%, although it remained negative.
The trend reversed in December 2022, with TripAdvisor Inc posting a positive return on total capital of 12.89%. This positive growth continued into December 2023, where the return on total capital further improved to 19.40%, suggesting the company was able to generate solid returns on its total capital.
However, in December 2024, there was a slight decline in the return on total capital to 14.10%, indicating a slight dip in the company's ability to generate returns relative to its total capital compared to the previous year. Overall, the recent positive trend in return on total capital showcases an improvement in TripAdvisor Inc's efficiency in utilizing its total capital to generate returns in the later years of the period analyzed.
Peer comparison
Dec 31, 2024