The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Trip.com Group's quick ratio for the quarter that ended in Sep. 2023 was 1.17.
Trip.com Group has a quick ratio of 1.17. It generally indicates good short-term financial strength.
The historical rank and industry rank for Trip.com Group's Quick Ratio or its related term are showing as below:
TCOM'
s Quick Ratio Range Over the Past 10 Years
Min: 0.95 Med: 1.16 Max: 2.26
Current: 1.23
During the past 13 years, Trip.com Group's highest Quick Ratio was 2.26. The lowest was 0.95. And the median was 1.16.
TCOM's Quick Ratio is ranked better than 56.41% of 835
companies
in the Travel & Leisure industry
Industry Median: 1.1
vs TCOM: 1.23
Trip.com Group Quick Ratio Historical Data
The historical data trend for Trip.com Group's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Trip.com Group's Quick Ratio
For the Travel Services subindustry, Trip.com Group's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Trip.com Group's Quick Ratio Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Trip.com Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Trip.com Group's Quick Ratio falls into.
Trip.com Group Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Trip.com Group's Quick Ratio for the fiscal year that ended in Dec. 2022 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Trip.com Group (NAS:TCOM) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Trip.com Group Quick Ratio Related Terms
Thank you for viewing the detailed overview of Trip.com Group's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Trip.com Group (Trip.com Group) Business Description
Trip.com is the largest online travel agent in China and is positioned to benefit from the country's rising demand for higher-margin outbound travel as passport penetration is only 12% in China. The company generated about 78% of sales from accommodation reservations and transportation ticketing in 2020. The rest of revenue comes from package tours and corporate travel. Prior to the pandemic in 2019, the company generated 25% of revenue from international business, which is important to its margin expansion. Most of sales come from websites and mobile platforms, while the rest come from call centers. The competes in a crowded OTA industry in China, including Meituan, Alibaba-backed Fliggy, Tongcheng, and Qunar. The company was founded in 1999 and listed on the Nasdaq in December 2003.
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