GURUFOCUS.COM » STOCK LIST » USA » NAS » TripAdvisor Inc (NAS:TRIP) » Definitions » ROE %
Switch to:

TripAdvisor (NAS:TRIP) ROE %

: -34.99% (As of Mar. 2023)
View and export this data going back to 2011. Start your Free Trial

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. TripAdvisor's annualized net income for the quarter that ended in Mar. 2023 was $-292 Mil. TripAdvisor's average Total Stockholders Equity over the quarter that ended in Mar. 2023 was $835 Mil. Therefore, TripAdvisor's annualized ROE % for the quarter that ended in Mar. 2023 was -34.99%.

The historical rank and industry rank for TripAdvisor's ROE % or its related term are showing as below:

TRIP' s ROE % Range Over the Past 10 Years
Min: -28.24   Med: 8.11   Max: 25.75
Current: -2.35

During the past 13 years, TripAdvisor's highest ROE % was 25.75%. The lowest was -28.24%. And the median was 8.11%.

TRIP's ROE % is ranked worse than
66.16% of 786 companies
in the Travel & Leisure industry
Industry Median: 2.54 vs TRIP: -2.35

TripAdvisor ROE % Historical Data

The historical data trend for TripAdvisor's ROE % 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.

* Premium members only.

TripAdvisor Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.97 9.57 -28.24 -17.67 2.42

TripAdvisor Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -17.48 15.87 12.43 -0.96 -34.99

Competitive Comparison

For the Travel Services subindustry, TripAdvisor's ROE %, along with its competitors' market caps and ROE % 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.

   

TripAdvisor ROE % Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, TripAdvisor's ROE % distribution charts can be found below:

* The bar in red indicates where TripAdvisor's ROE % falls in comparison to its industry or sector. The grey bar indicates the ROE %'s extreme value range as defined by GuruFocus.



TripAdvisor ROE % Calculation

TripAdvisor's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=20/( (789+861)/ 2 )
=20/825
=2.42 %

TripAdvisor's annualized ROE % for the quarter that ended in Mar. 2023 is calculated as

ROE %=Net Income (Q: Mar. 2023 )/( (Total Stockholders Equity (Q: Dec. 2022 )+Total Stockholders Equity (Q: Mar. 2023 ))/ count )
=-292/( (861+808)/ 2 )
=-292/834.5
=-34.99 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2023) net income data. ROE % is displayed in the 30-year financial page.


TripAdvisor  (NAS:TRIP) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2023 )
=Net Income/Total Stockholders Equity
=-292/834.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-292 / 1484)*(1484 / 2626.5)*(2626.5 / 834.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=-19.68 %*0.565*3.1474
=ROA %*Equity Multiplier
=-11.12 %*3.1474
=-34.99 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2023 )
=Net Income/Total Stockholders Equity
=-292/834.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-292 / -60) * (-60 / -56) * (-56 / 1484) * (1484 / 2626.5) * (2626.5 / 834.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 4.8667 * 1.0714 * -3.77 % * 0.565 * 3.1474
=-34.99 %

Note: The net income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


TripAdvisor ROE % Related Terms

Thank you for viewing the detailed overview of TripAdvisor's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


TripAdvisor (NAS:TRIP) Business Description

TripAdvisor logo
Address
400 1st Avenue, Needham, MA, USA, 02494
TripAdvisor is the world's leading travel metasearch company. The website offers 1 billion reviews and information on about 8 million accommodations, restaurants, experiences, airlines, and cruises. In 2021, 74% of revenue came from the company's core segment, which includes hotel revenue generated through advertising on its metasearch platform. Viator, its experiences brand, was 20% of sales in 2021, and TheFork, its dining brand, represented 9% of revenue (about 3% of sales were intersegment, which are eliminated from consolidated revenue).
Executives
Michael Noonan officer: CFO & SVP C/O TRIPADVISOR, INC., 400 1ST AVENUE, NEEDHAM MA 02494
Matt Goldberg director, officer: CEO and President 2 WISCONSIN CIRCLE, 7TH FLOOR, CHEVY CHASE MD 20815
Jay C Hoag director 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Jie Sun director BUILDING 16#, NO. 968 JIN ZHONG ROAD, SHANGHAI F4 200335
Kanika Soni officer: Chief Commercial Officer C/O TRIPADVISOR INC., 400 1ST AVENUE, NEEDHAM MA 02494
Lindsay Nelson officer: Chief Experience&Brand Officer C/O TRIPADVISOR INC., 400 FIRST AVENUE, NEEDHAM MA 02494
Certares Ltrip Llc director 350 MADISON AVENUE 8TH FLOOR, NEW YORK NY 10017
Pemrose Corp director 350 MADISON AVENUE 8TH FLOOR, NEW YORK NY 10017
Certares Holdings (blockable) Llc director 350 MADISON AVENUE 8TH FLOOR, NEW YORK NY 10017
Certares Holdings Llc director 350 MADISON AVENUE 8TH FLOOR, NEW YORK NY 10017
Certares Holdings (optional) Llc director 350 MADISON AVENUE 8TH FLOOR, NEW YORK NY 10017
Certares Management Llc director 350 MADISON AVENUE 8TH FLOOR, NEW YORK NY 10017
Clementine Investments Llc director 350 MADISON AVENUE 8TH FLOOR, NEW YORK NY 10017
Farmer Colin Michael director C/O CERTARES MANAGEMENT LLC, 350 MADISON AVENUE, 8TH FLOOR, NEW YORK NY 10017
Michael Gregory Ohara director C/O CERTARES MANAGEMENT LLC, 350 MADISON AVENUE, 8TH FLOOR, NEW YORK NY 10017

TripAdvisor (NAS:TRIP) Headlines

Other Sources