TripAdvisor Inc (TRIP)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,561,000 | 2,537,000 | 2,569,000 | 2,289,000 | 1,969,000 |
| Total stockholders’ equity | US$ in thousands | 943,000 | 871,000 | 861,000 | 789,000 | 886,000 |
| Financial leverage ratio | 2.72 | 2.91 | 2.98 | 2.90 | 2.22 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,561,000K ÷ $943,000K
= 2.72
The financial leverage ratio for TripAdvisor Inc has shown a steady increase over the years from 2.22 in 2020 to 2.72 in 2024. This indicates that the company's reliance on debt to finance its operations and investments has been gradually rising. While a higher financial leverage ratio can magnify returns for shareholders during profitable times, it also poses increased risk during downturns or periods of financial instability. It will be crucial for TripAdvisor Inc to carefully manage its debt levels to ensure sustainable growth and financial stability in the long term.
Peer comparison
Dec 31, 2024