Trip Group Debt
| TCOM Stock | USD 63.64 1.53 2.35% |
Trip Group holds a debt-to-equity ratio of 0.491. At this time, Trip Group's Long Term Debt Total is very stable compared to the past year. As of the 25th of November 2024, Debt To Equity is likely to grow to 0.41, while Short Term Debt is likely to drop about 21.6 B. . Trip Group's financial risk is the risk to Trip Group stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Trip Group's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Trip Group's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Trip Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Trip Group's stakeholders.
For most companies, including Trip Group, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Trip Group Ltd, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Trip Group's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 2.1548 | Book Value 189.7 | Operating Margin 0.2783 | Profit Margin 0.2884 | Return On Assets 0.0348 |
Trip |
Trip Group Bond Ratings
Trip Group Ltd financial ratings play a critical role in determining how much Trip Group have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Trip Group's borrowing costs.| Piotroski F Score | 8 | Strong | View |
| Beneish M Score | (2.63) | Unlikely Manipulator | View |
Trip Group Debt to Cash Allocation
Many companies such as Trip Group, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Trip Group Ltd currently holds 45.57 B in liabilities with Debt to Equity (D/E) ratio of 0.49, which is about average as compared to similar companies. Trip Group has a current ratio of 1.1, suggesting that it may have difficulties to pay its financial obligations when due. Note, when we think about Trip Group's use of debt, we should always consider it together with its cash and equity.Trip Group Total Assets Over Time
Trip Group Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Trip Group uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.Trip Group Debt Ratio | 18.0 |
Trip Group Corporate Bonds Issued
Trip Group issues bonds to finance its operations. Corporate bonds make up one of the most significant components of the U.S. bond market and are considered the world's largest securities market. Trip Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt.
Trip Net Debt
Net Debt |
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Understaning Trip Group Use of Financial Leverage
Leverage ratios show Trip Group's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Trip Group's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Net Debt | 4 B | 3.8 B | |
| Short Term Debt | 26 B | 21.6 B | |
| Short and Long Term Debt Total | 45.6 B | 38 B | |
| Long Term Debt | 19.1 B | 18.2 B | |
| Short and Long Term Debt | 25.9 B | 23.6 B | |
| Long Term Debt Total | 17.6 B | 20.1 B | |
| Net Debt To EBITDA | 0.33 | 0.31 | |
| Debt To Equity | 0.37 | 0.41 | |
| Interest Debt Per Share | 70.08 | 49.70 | |
| Debt To Assets | 0.21 | 0.18 | |
| Long Term Debt To Capitalization | 0.14 | 0.22 | |
| Total Debt To Capitalization | 0.27 | 0.25 | |
| Debt Equity Ratio | 0.37 | 0.41 | |
| Debt Ratio | 0.21 | 0.18 | |
| Cash Flow To Debt Ratio | 0.49 | 0.46 |
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Is Hotels, Resorts & Cruise Lines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Trip Group. If investors know Trip will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Trip Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 4.926 | Earnings Share 2.86 | Revenue Per Share 74.603 | Quarterly Revenue Growth 0.136 | Return On Assets 0.0348 |
The market value of Trip Group is measured differently than its book value, which is the value of Trip that is recorded on the company's balance sheet. Investors also form their own opinion of Trip Group's value that differs from its market value or its book value, called intrinsic value, which is Trip Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Trip Group's market value can be influenced by many factors that don't directly affect Trip Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Trip Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Trip Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Trip Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.