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Trip.com Group Financial Strength

: 5 (As of Mar. 2022)
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Trip.com Group has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Trip.com Group did not have earnings to cover the interest expense. Trip.com Group's debt to revenue ratio for the quarter that ended in Mar. 2022 was 3.14. As of today, Trip.com Group's Altman Z-Score is 0.95.


Competitive Comparison

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

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

* The bar in red indicates where Trip.com Group's Financial Strength falls into.



Trip.com Group Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Trip.com Group's Interest Expense for the months ended in Mar. 2022 was $-54 Mil. Its Operating Income for the months ended in Mar. 2022 was $-57 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $3,258 Mil.

Trip.com Group's Interest Coverage for the quarter that ended in Mar. 2022 is

Trip.com Group did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Trip.com Group's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(4865.5549601236 + 3257.7309838288) / 2590.5494436213
=3.14

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Trip.com Group has a Z-score of 0.95, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.95 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Trip.com Group has the Financial Strength Rank of 5.


Trip.com Group Financial Strength Related Terms

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


Trip.com Group Business Description

Trip.com Group logo
Address
968 Jin Zhong Road, Shanghai, CHN, 200335
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, Toncheng, and Qunar. The company was founded in 1999 and listed on the Nasdaq in December 2003.

Trip.com Group Headlines

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