TripAdvisor Inc (TRIP)
Debt-to-equity 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-equity ratio | 0.96 | 0.97 | 1.06 | 0.55 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $839,000K ÷ $871,000K
= 0.96
The debt-to-equity ratio of TripAdvisor Inc. has fluctuated over the past five years, indicating varying levels of leverage over this period. The ratio was highest in 2021 at 1.15, suggesting that the company relied more on debt funding compared to equity that year. This high ratio could signal potential financial risk due to a greater proportion of debt in the capital structure.
In contrast, the ratio sharply decreased to 0.07 in 2019, indicating a significant reduction in debt relative to equity that year. This decline may have been a strategic decision to improve the company's financial stability and reduce interest expenses. However, the ratio increased steadily in the following years, reaching 1.03 by the end of 2023.
Overall, the trend in TripAdvisor Inc.'s debt-to-equity ratio suggests a dynamic capital structure strategy, with periods of higher leverage followed by efforts to reduce debt levels. Investors and stakeholders should closely monitor future changes in this ratio to assess the company's financial health and risk management practices.
Peer comparison
Dec 31, 2023