How Does TripAdvisor’s Financial State Currently Look?

•  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.

• What Is TripAdvisor’s Fundamental Value On The Basis Of Its Forecasted 2015 Results?
• Advertising Vs Subscription: What’s TripAdvisor’s Revenue and EBITDA Breakdown?
• How Has TripAdvisor’s Revenue And EBITDA Composition Changed Over 2012-2016E?
• TripAdvisor Year 2015 In Review
• Where Can TripAdvisor’s Growth Come From In The Next 5 Years?
• What Drove TripAdvisor’s Revenue And EBITDA Growth Over The Last Five Years?
• TripAdvisor Q1 2016 Earnings Preview
• How Is TripAdvisor Gearing Up For Competition In The Vacation Rental Space?
• How Can Instant Booking Stir Up The OTA Space And Be A Game Changer For TripAdvisor?
• TripAdvisor’s Expected Revenue And EBITDA Growth For 2016: Trefis Estimate

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