How Does TripAdvisor’s Financial State Currently Look?

-8.18%
Downside
27.82
Market
25.54
Trefis
TRIP: Tripadvisor logo
TRIP
Tripadvisor

trip health 2

 

  •  From the above analysis we can conclude that TripAdvisor is in a sound financial state.
  • TripAdvisor’s cash asset ratio is over 1, suggesting that the company will be able to pay off most of its near term obligations by using just its cash.
  • The value of its assets that can be quickly converted to cash is more than double its short-term liabilities. Though this might indicate that Tripadvisor has enough assets to increase its investments, the company hs been very acquisitive, pursuing a shopping spree of restaurant booking websites, vacation rentals, and tourism related websites.   Tripadvisor already has a full plate. However, the possibility of additionla acquisitions remains.
  • The solvency analysis shows TripAdvisor’s reliance on debt is almost insignificant.
  • The interest coverage ratio of ~11 implies that TripAdvisor can repay the current interests on its debts almost 11 times over with the help of its available earnings. This suggests that TripAdvisor’s short-term financial health is in excellent shape.

Have more questions about TripAdvisor? See the links below.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for TripAdvisor

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