TripAdvisor Inc (TRIP)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.72 | 2.90 | 3.24 | 3.32 | 2.91 | 3.20 | 3.50 | 3.32 | 2.98 | 3.15 | 3.28 | 3.09 | 2.90 | 2.91 | 3.06 | 2.84 | 2.22 | 2.20 | 2.47 | 2.36 |
TripAdvisor Inc has maintained a strong solvency position based on its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently been at 0.00 across all reporting periods, indicating that the company has no significant debt relative to its assets, capital, or equity.
The financial leverage ratio, which provides a measure of a company's total debt relative to its equity, has shown some fluctuations but generally remains at a moderate level. The ratio has ranged from 2.20 to 3.50 over the past few years, with a peak in June 30, 2023. However, the ratio has come down to 2.72 by December 31, 2024, indicating a reduction in financial leverage.
Overall, TripAdvisor Inc's solvency ratios reflect a healthy financial position with low debt levels in relation to its assets and equity, which is a positive signal for investors and creditors regarding the company's ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.91 | 3.61 | 3.84 | 3.98 | 4.00 | 2.95 | 2.74 | 2.95 | 2.50 | 1.78 | 0.50 | -1.65 | -3.11 | -4.04 | -5.20 | -8.71 | -9.22 | -9.21 | -7.69 | 17.75 |
The interest coverage ratio for TripAdvisor Inc fluctuated significantly over the period from March 31, 2020, to December 31, 2024. The ratio indicates the company's ability to cover its interest expenses with its operating income.
Initially, in March 2020, TripAdvisor had a healthy interest coverage ratio of 17.75, suggesting that the company had more than enough operating income to cover its interest payments. However, the subsequent quarters showed a sharp decline in the interest coverage ratio, turning negative in June 2020 and staying negative until June 2022. This negative trend indicates that the company's operating income was insufficient to cover its interest expenses during this period.
From September 2022 onwards, the interest coverage ratio began to improve, turning positive again by December 2022. This positive trend continued through December 2024, indicating that TripAdvisor's operating income was more than adequate to cover its interest obligations during these quarters.
Overall, the analysis highlights a period of financial instability for TripAdvisor, marked by a prolonged strain on its ability to cover interest expenses, followed by a recovery where the company managed to strengthen its financial position and ensure better coverage of its interest payments.