TripAdvisor Inc (TRIP)
Debt-to-equity 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-equity ratio | 0.96 | 1.02 | 1.07 | 1.04 | 0.97 | 1.03 | 1.05 | 1.09 | 1.06 | 1.05 | 1.07 | 1.06 | 0.55 | 0.54 | 0.77 | 0.68 | 0.00 | 0.00 | 0.00 | 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 eight quarters, ranging from 1.03 to 1.18. A higher debt-to-equity ratio indicates that the company relies more on debt financing rather than equity, which can be risky as it means the company has higher financial leverage.
In this case, the trend observed in the data shows an overall increase in the debt-to-equity ratio from Q4 2022 to Q2 2023, peaking at 1.18 in Q1 2022. This upward trend suggests that the company may be taking on more debt relative to equity over this period.
It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial health and risk management strategies. A high debt-to-equity ratio could indicate potential challenges in meeting debt obligations and may affect the company's ability to take on future investments or handle economic downturns. Additionally, changes in this ratio could be influenced by various factors such as borrowing decisions, repayment schedules, profitability, and overall financial performance.
Peer comparison
Dec 31, 2023