TripAdvisor Inc (TRIP)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 839,000 | 836,000 | 833,000 | 491,000 | — |
| Total stockholders’ equity | US$ in thousands | 871,000 | 861,000 | 789,000 | 886,000 | 1,161,000 |
| Debt-to-capital ratio | 0.49 | 0.49 | 0.51 | 0.36 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $839,000K ÷ ($839,000K + $871,000K)
= 0.49
The debt-to-capital ratio of TripAdvisor Inc. has shown a fluctuating trend over the past five years. In 2019, the ratio was significantly low at 0.07, indicating a conservative debt level relative to the company's total capital. However, there was a notable increase in 2021 to 0.53, suggesting a higher reliance on debt compared to the total capital structure.
In recent years, the debt-to-capital ratio has stabilized around 0.51, indicating a balanced mix of debt and equity financing in the company's capital structure. This ratio suggests that approximately 51% of TripAdvisor's capital is financed through debt, while the remaining 49% is funded by equity.
Overall, the trend in the debt-to-capital ratio of TripAdvisor Inc. shows fluctuations but has settled around 0.51 in the most recent years, reflecting a relatively stable financial position in terms of leveraging debt to support its operations and growth initiatives.
Peer comparison
Dec 31, 2023