TripAdvisor Inc (TRIP)

Solvency ratios

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Debt-to-assets ratio 0.00 0.00 0.00 0.00 0.00
Debt-to-capital ratio 0.00 0.00 0.00 0.00 0.00
Debt-to-equity ratio 0.00 0.00 0.00 0.00 0.00
Financial leverage ratio 2.72 2.91 2.98 2.90 2.22

TripAdvisor Inc's solvency ratios indicate a strong financial position with consistently low debt-related ratios. The Debt-to-Assets ratio has remained at 0.00 for the years 2020 to 2024, signifying that the company's total debt is negligible in relation to its total assets. Similarly, the Debt-to-Capital ratio and Debt-to-Equity ratio have also maintained a stable 0.00 across the same period, indicating minimal reliance on debt for financing operations.

The Financial Leverage ratio, which measures the proportion of debt in the company's capital structure, has shown a slight fluctuation but generally remains at a moderate level. With values ranging from 2.22 to 2.98 over the years 2020 to 2024, the company exhibits a reasonable balance between debt and equity financing.

Overall, TripAdvisor Inc's solvency ratios reflect a healthy financial position with a conservative approach to debt management and a sustainable capital structure.


Coverage ratios

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Interest coverage 2.89 3.84 2.52 -3.11 -9.54

Based on the provided data, TripAdvisor Inc's interest coverage ratio has shown varying trends over the past five years. In December 31, 2020, the interest coverage ratio was significantly negative at -9.54, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses.

The following year, by December 31, 2021, the interest coverage ratio improved to -3.11 but remained in negative territory, suggesting ongoing challenges in meeting interest obligations from operating earnings alone. However, in December 31, 2022, there was a notable improvement as the interest coverage ratio increased to a positive 2.52, indicating the company's ability to cover its interest payments with its EBIT.

This positive trend continued into December 31, 2023, with an interest coverage ratio of 3.84, demonstrating further strengthening of TripAdvisor's ability to meet its interest obligations. However, by December 31, 2024, the interest coverage ratio decreased slightly to 2.89, suggesting a potential decrease in earnings relative to its interest expenses from the previous year.

Overall, TripAdvisor Inc's interest coverage ratio has shown a mix of negative and positive trends over the years, with signs of improvement in recent years but still indicating the importance of monitoring the company's ability to service its debt obligations.