TripAdvisor Inc (TRIP)

Solvency ratios

	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
Debt-to-assets ratio	0.33	0.32	0.31	0.31	0.33	0.33	0.32	0.35	0.36	0.36	0.35	0.37	0.25	0.25	0.31	0.29	0.00	0.00	0.00	0.00
Debt-to-capital ratio	0.49	0.50	0.52	0.51	0.49	0.51	0.51	0.52	0.51	0.51	0.52	0.51	0.36	0.35	0.43	0.41	0.00	0.00	0.00	0.00
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
Financial leverage ratio	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	1.71	1.50	1.63	1.59

The solvency ratios of TripAdvisor Inc. indicate the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has remained relatively stable around 0.33 to 0.35 in the latest quarters, suggesting that approximately 33% to 35% of the company's assets are financed by debt.

The debt-to-capital ratio also shows consistency, hovering around 0.51 to 0.54, indicating that debt accounts for approximately 51% to 54% of the company's capital structure.

The debt-to-equity ratio reflects an increasing trend from 1.03 to 1.18 over the past year, showing that the company's debt level relative to equity has been rising, with debt exceeding equity by a factor between 1.03 to 1.18.

The financial leverage ratio has shown variability but with an overall increasing trend from 2.91 to 3.09 in the most recent quarter, indicating that the company is relying more on debt financing to support its operations, with a leverage factor ranging from 2.91 to 3.09.

Overall, the analysis of the solvency ratios suggests that TripAdvisor Inc. has been maintaining a reasonable level of debt relative to its assets and capital, but the increasing trend in debt-to-equity and financial leverage ratios indicates a growing reliance on debt financing, which may increase the company's financial risk and impact its ability to weather economic uncertainties or downturns in the future.

Coverage ratios

	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
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

Based on the available data, TripAdvisor Inc.'s interest coverage has shown improvement over the quarters. In Q1 2022, the company had a negative interest coverage ratio of -1.56, indicating that its earnings were insufficient to cover its interest expenses. However, there was a significant turnaround in the subsequent quarters, with the interest coverage ratio increasing to 0.62 in Q2 2022, 2.05 in Q3 2022, and further improving to 3.41 in Q4 2022.

The positive trend continued into 2023, with the interest coverage ratio reaching 6.18 in Q1 2023 and a relatively strong 17.20 in Q2 2023. This indicates that TripAdvisor Inc. had significantly strengthened its ability to cover its interest obligations using its operating income over these periods.

Overall, the upward trajectory of TripAdvisor Inc.'s interest coverage ratio suggests an improvement in the company's financial position and ability to meet its debt obligations through its operating earnings.