Trip.com Group (Trip.com Group) Interest Coverage

: 7.39 (As of Sep. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Trip.com Group's Operating Income for the three months ended in Sep. 2023 was $536 Mil. Trip.com Group's Interest Expense for the three months ended in Sep. 2023 was $-72 Mil. Trip.com Group's interest coverage for the quarter that ended in Sep. 2023 was 7.39. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Trip.com Group's Interest Coverage or its related term are showing as below:

TCOM' s Interest Coverage Range Over the Past 10 Years
Min: 0.47 Med: 2.01 Max: 14.7
Current: 5.46

TCOM's Interest Coverage is ranked better than
51.07% of 609 companies
in the Travel & Leisure industry
Industry Median: 5.01 vs TCOM: 5.46

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Trip.com Group Interest Coverage Historical Data

The historical data trend for Trip.com Group's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Trip.com Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

3.01

0.47

5.48

Trip.com Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																0.89	4.61	5.36	7.39	4.42

Competitive Comparison

For the Travel Services subindustry, Trip.com Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Trip.com Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Trip.com Group's Interest Coverage falls into.

Trip.com Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Trip.com Group's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Trip.com Group's Interest Expense was $-217 Mil. Its Operating Income was $101 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,967 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	101.267	/	-217.164
	=	0.47

Trip.com Group's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, Trip.com Group's Interest Expense was $-72 Mil. Its Operating Income was $536 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,760 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	535.634	/	-72.487
	=	7.39

The higher the ratio, the stronger the company's Financial Strength is.

Trip.com Group (NAS:TCOM) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Trip.com Group Interest Coverage Related Terms

Thank you for viewing the detailed overview of Trip.com Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Trip.com Group (Trip.com Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Trip.com Group Ltd (NAS:TCOM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TRPCF:USA 09961:Hong Kong 0I50:UK CLVB:Germany CLVB:Germany CLV:Germany CLV:Germany CRIP34:Brazil

Address

968 Jin Zhong Road, Shanghai, CHN, 200335

Website

https://www.ctrip.com

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.