TripAdvisor Inc (TRIP)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 169,000 | 121,000 | 119,000 | 128,000 | 111,000 | 80,000 | 22,000 | -77,000 | -141,000 | -196,000 | -256,000 | -393,000 | -333,000 | -220,000 | -100,000 | 142,000 | 202,000 | 204,000 | 220,000 | 195,000 |
| Interest expense (ttm) | US$ in thousands | 44,000 | 44,000 | 44,000 | 44,000 | 45,000 | 45,000 | 46,000 | 46,000 | 45,000 | 47,000 | 48,000 | 44,000 | 35,000 | 24,000 | 13,000 | 8,000 | 8,000 | 8,000 | 10,000 | 11,000 |
| Interest coverage | 3.84 | 2.75 | 2.70 | 2.91 | 2.47 | 1.78 | 0.48 | -1.67 | -3.13 | -4.17 | -5.33 | -8.93 | -9.51 | -9.17 | -7.69 | 17.75 | 25.25 | 25.50 | 22.00 | 17.73 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $169,000K ÷ $44,000K
= 3.84
The interest coverage ratio measures a company's ability to cover its interest expenses using its operating income. A higher ratio indicates a stronger ability to meet interest obligations.
Looking at the trend of TripAdvisor Inc.'s interest coverage ratio over the past eight quarters, we observe varying levels. In Q4 2023, the interest coverage ratio was not provided, so we cannot draw any conclusions for that period. However, in Q3 and Q2 2023, the interest coverage ratios were 17.20 and 6.18, respectively, indicating a strong ability to cover interest expenses.
In comparison to the previous quarters, the interest coverage ratio has improved significantly from negative figures in Q1 and Q2 2022 to positive figures in subsequent quarters. This improvement suggests that the company's operating income has been sufficient to cover its interest expenses.
While the increasing trend in interest coverage ratios is a positive sign, it is essential for investors and stakeholders to continue monitoring this ratio to ensure that TripAdvisor Inc. maintains its ability to meet its interest obligations in the long term.
Peer comparison
Dec 31, 2023