TripAdvisor Inc (TRIP)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	839,000	839,000	838,000	837,000	836,000	836,000	835,000	834,000	833,000	832,000	832,000	831,000	491,000	490,000	700,000	700,000	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	1,161,000	1,648,000	1,575,000	1,507,000
Debt-to-capital ratio		0.49	0.50	0.52	0.51	0.49	0.51	0.51	0.52	0.51	0.51	0.52	0.51	0.36	0.35	0.43	0.41	0.00	0.00	0.00	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 been relatively stable over the past eight quarters, fluctuating within a range of 0.51 to 0.54. This ratio indicates that, on average, approximately 51% to 54% of the company's capital structure is financed by debt, with the remainder coming from equity.

A consistently moderate debt-to-capital ratio suggests that TripAdvisor Inc. maintains a balanced capital structure, utilizing a combination of debt and equity financing. This may indicate a manageable level of financial risk, as the company is not overly reliant on debt to fund its operations and investments.

Overall, the trend of the debt-to-capital ratio for TripAdvisor Inc. does not show any significant cause for concern, as it has remained fairly steady over the past two years. However, it is important for the company to continue monitoring and managing its debt levels to ensure a healthy and sustainable financial position.