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.