Tripadvisor Return On Equity vs. Total Debt
| T1RI34 Stock | BRL 83.34 0.00 0.00% |
For Tripadvisor profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tripadvisor to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tripadvisor utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tripadvisor's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tripadvisor over time as well as its relative position and ranking within its peers.
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Tripadvisor Total Debt vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Tripadvisor's current stock value. Our valuation model uses many indicators to compare Tripadvisor value to that of its competitors to determine the firm's financial worth. Tripadvisor is rated fifth in return on equity category among its peers. It is rated below average in total debt category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Tripadvisor by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Tripadvisor's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Tripadvisor Total Debt vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | -0.0087 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
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| = | 833 M |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Tripadvisor Total Debt vs Competition
Tripadvisor is rated below average in total debt category among its peers. Total debt of Travel Services industry is at this time estimated at about 78.04 Billion. Tripadvisor claims roughly 833 Million in total debt contributing just under 2% to equities listed under Travel Services industry.
Tripadvisor Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Tripadvisor, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tripadvisor will eventually generate negative long term returns. The profitability progress is the general direction of Tripadvisor's change in net profit over the period of time. It can combine multiple indicators of Tripadvisor, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
It operates in two segments, Hotels, Media Platform and Experiences Dining. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts. TRIPADVISOR DRN operates under Travel Services classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 2648 people.
Tripadvisor Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Tripadvisor. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Tripadvisor position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Tripadvisor's important profitability drivers and their relationship over time.
Use Tripadvisor in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Tripadvisor position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tripadvisor will appreciate offsetting losses from the drop in the long position's value.Tripadvisor Pair Trading
Tripadvisor Pair Trading Analysis
The ability to find closely correlated positions to Tripadvisor could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Tripadvisor when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Tripadvisor - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Tripadvisor to buy it.
The correlation of Tripadvisor is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Tripadvisor moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tripadvisor moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Tripadvisor can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Tripadvisor position
In addition to having Tripadvisor in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in Tripadvisor Stock
When determining whether Tripadvisor is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Tripadvisor Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Tripadvisor Stock. Highlighted below are key reports to facilitate an investment decision about Tripadvisor Stock:Check out World Market Map. For information on how to trade Tripadvisor Stock refer to our How to Trade Tripadvisor Stock guide.You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
To fully project Tripadvisor's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Tripadvisor at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Tripadvisor's income statement, its balance sheet, and the statement of cash flows.