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.