TripAdvisor, Inc.
TRIP Consumer Cyclical Travel Services
In the quarter to June 2026, revenue fell 7.16%, EPS fell 34.5%, free cash flow fell 26.2% and total debt fell 29.6%, each against the same quarter a year earlier. Revenue growth for five consecutive years.
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TripAdvisor, Inc. (TRIP) Altman Z-score
TripAdvisor, Inc.'s Altman Z-score for fiscal 2025 is 1.67, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 1.67 | (0.40) |
| FY2024 | 2.07 | (0.37) |
| FY2023 | 2.44 | 0.36 |
| FY2022 | 2.08 | (0.07) |
| FY2021 | 2.15 | (0.23) |
| FY2020 | 2.39 | (2.33) |
| FY2019 | 4.72 | (3.69) |
| FY2018 | 8.40 | 3.46 |
| FY2017 | 4.95 | (2.31) |
| FY2016 | 7.26 | (4.93) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.11 | — | 0.13 | |
| Retained earnings / total assets | 0.12 | — | 0.17 | |
| EBIT / total assets | 0.03 | — | 0.10 | |
| Market value of equity / total liabilities | 0.92 | — | 0.55 | |
| Sales / total assets | 0.72 | — | 0.72 | |
| Altman Z-score | Distress zone | 1.67 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.67 | ||
Z and Z″ put TripAdvisor, Inc. in different zones: distress zone by Z, grey zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| TCOM Trip.com Group Limited Sponsored ADR compare | 3.1× |
| PRSU Pursuit Attractions and Hospitality, Inc. compare | 2.6× |
| TNL Travel + Leisure Co. compare | 2.3× |
| TRIP TripAdvisor, Inc. | 1.7× |
| LIND Lindblad Expeditions compare | 0.6× |
| MMYT MakeMyTrip Limited compare | 0.4× |
| NCLH Norwegian Cruise Line Holdings Ltd. compare | 0.4× |
| YTRA Yatra Online, Inc. compare | −0.2× |
| TOUR Tuniu Corporation compare | −5.9× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets