TripAdvisor Inc (TRIP)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 134,000 | 166,000 | 169,000 | 175,000 | 176,000 | 127,000 | 118,000 | 127,000 | 110,000 | 80,000 | 23,000 | -76,000 | -140,000 | -194,000 | -255,000 | -392,000 | -332,000 | -221,000 | -100,000 | 142,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 943,000 | 944,000 | 857,000 | 825,000 | 871,000 | 823,000 | 781,000 | 808,000 | 861,000 | 813,000 | 796,000 | 767,000 | 789,000 | 794,000 | 779,000 | 785,000 | 886,000 | 908,000 | 912,000 | 1,027,000 |
| Return on total capital | 14.21% | 17.58% | 19.72% | 21.21% | 20.21% | 15.43% | 15.11% | 15.72% | 12.78% | 9.84% | 2.89% | -9.91% | -17.74% | -24.43% | -32.73% | -49.94% | -37.47% | -24.34% | -10.96% | 13.83% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $134,000K ÷ ($—K + $943,000K)
= 14.21%
The return on total capital for TripAdvisor Inc has shown a fluctuating trend over the periods analyzed. From March 31, 2020, to December 31, 2021, the return on total capital was consistently negative, indicating that the company was not generating sufficient returns relative to the total capital invested. However, starting from March 31, 2022, there has been a significant improvement in the return on total capital, with the percentage turning positive and gradually increasing.
The return on total capital reached its highest point of 21.21% on March 31, 2024, suggesting that TripAdvisor Inc was able to generate a return of 21.21% on the total capital employed during that period. This improvement indicates better utilization of capital resources and potentially more efficient operations. Investors and stakeholders may view this positively as it signifies enhanced profitability and value creation for the company.
Overall, the positive trend in the return on total capital for TripAdvisor Inc from 2022 to 2024 is a promising sign of the company's financial performance and efficiency in capital utilization. It is essential for management to continue monitoring and managing capital effectively to sustain and build upon this positive momentum.
Peer comparison
Dec 31, 2024