Travel + Leisure Co (TNL)

Short-term

Turnover ratios

1. Inventory Turnover
- The inventory turnover ratio measures how efficiently a company manages its inventory. Travel + Leisure Co's inventory turnover has fluctuated over the years, from 1.09 in 2020 to reaching a peak of 1.49 in 2023 before slightly declining to 1.48 in 2024. This indicates that the company is effectively managing its inventory levels by selling and replenishing stock at a relatively consistent pace.

2. Receivables Turnover
- The receivables turnover ratio reflects how quickly a company collects payments from its customers. In this case, there is no data available for Travel + Leisure Co's receivables turnover for the years 2020 to 2024. This lack of information may suggest that the company's credit policies and collection processes are not easily discernible from the provided data.

3. Payables Turnover
- The payables turnover ratio helps evaluate how efficiently a company pays its suppliers. Similar to receivables turnover, there is no data provided for Travel + Leisure Co's payables turnover for the years 2020 to 2024. Without this information, it is challenging to assess the company's payment cycle and relationship with its creditors.

4. Working Capital Turnover
- The working capital turnover ratio indicates how efficiently a company utilizes its working capital to generate revenue. Travel + Leisure Co's working capital turnover has shown significant fluctuations, ranging from 1.11 in 2020 to a peak of 11.50 in 2023 before dropping to 4.10 in 2024. The sharp increase in 2023 suggests that the company effectively utilized its working capital to drive sales, although the subsequent decrease in 2024 may indicate a slight decrease in efficiency or a change in operating dynamics.

In summary, Travel + Leisure Co demonstrates varying levels of efficiency in managing its inventory and working capital over the years. However, the lack of data for receivables and payables turnover limits a comprehensive analysis of the company's overall operating cycle and relationships with customers and suppliers.

---

Average number of days

Travel + Leisure Co's Days of Inventory on Hand (DOH) has shown a downward trend over the last five years, decreasing from 336.29 days as of December 31, 2020, to 245.80 days as of December 31, 2024. This indicates that the company is managing its inventory more efficiently, taking fewer days to sell its inventory or turning over its stock more quickly.

Regarding Days of Sales Outstanding (DSO) and Number of Days of Payables, the data is not provided for the years 2020 to 2024. As a result, it is not possible to analyze the efficiency of the company's accounts receivable collection or accounts payable management during this period. These ratios could provide insight into how quickly the company collects payments from its customers and how long it takes to pay its suppliers.

In conclusion, Travel + Leisure Co has improved its inventory turnover efficiency over the years, but without information on DSO and payables turnover, a comprehensive analysis of the company's overall working capital management cannot be provided.

---

Long-term

The Fixed Asset Turnover ratio for Travel + Leisure Co has shown a steady increase over the past five years, rising from 3.24 in 2020 to 6.54 in 2024. This indicates that the company has been more efficient in generating revenue from its fixed assets over time.

Similarly, the Total Asset Turnover ratio has also exhibited an upward trend, growing from 0.28 in 2020 to 0.57 in 2024. This suggests that Travel + Leisure Co has been effective in utilizing its total assets to generate sales throughout the period.

Overall, both ratios reflect an improvement in the company's long-term asset utilization efficiency, indicating that Travel + Leisure Co has been successful in leveraging its assets to generate revenue and potentially create value for its stakeholders.