Trip.com Group (Trip.com Group) Debt-to-EBITDA : 2.55 (As of Sep. 2023)

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What is Trip.com Group Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Trip.com Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $4,221 Mil. Trip.com Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $2,760 Mil. Trip.com Group's annualized EBITDA for the quarter that ended in Sep. 2023 was $2,739 Mil. Trip.com Group's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 2.55.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Trip.com Group's Debt-to-EBITDA or its related term are showing as below:

TCOM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -141.29 Med: 8.57 Max: 30.4
Current: 3.55

During the past 13 years, the highest Debt-to-EBITDA Ratio of Trip.com Group was 30.40. The lowest was -141.29. And the median was 8.57.

TCOM's Debt-to-EBITDA is ranked worse than
55.65% of 620 companies
in the Travel & Leisure industry
Industry Median: 2.875 vs TCOM: 3.55

Trip.com Group Debt-to-EBITDA Historical Data

The historical data trend for Trip.com Group's Debt-to-EBITDA 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.

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Trip.com Group Debt-to-EBITDA Chart

Trip.com Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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4.20

27.91

20.63

8.58

3.56

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
Debt-to-EBITDA	Get a 7-Day Free Trial															3.94	3.07	8.60	2.55	6.02

Competitive Comparison of Trip.com Group's Debt-to-EBITDA

For the Travel Services subindustry, Trip.com Group's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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's Debt-to-EBITDA Distribution in the Travel & Leisure Industry

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

* The bar in red indicates where Trip.com Group's Debt-to-EBITDA falls into.

Trip.com Group Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Trip.com Group's Debt-to-EBITDA for the fiscal year that ended in Dec. 2022 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(4725.964	+	1966.665)	/	780.297
	=	8.58

Trip.com Group's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(4221.351	+	2760.383)	/	2738.872
	=	2.55

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Sep. 2023) EBITDA data.

Trip.com Group (NAS:TCOM) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Trip.com Group Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Trip.com Group's Debt-to-EBITDA 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 » Debt-to-EBITDA

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.