Travel + Leisure Co (TNL)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | 1.30 | |
| DSO | days | — | — | — | — | 281.67 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
The days of sales outstanding (DSO) for Travel+Leisure Co have exhibited variability over the past five years. In 2023, the DSO increased to 30.66 days from 23.33 days in 2022, indicating that the company took longer to collect its accounts receivable compared to the previous year. This could potentially be a cause for concern as it suggests a potential delay in receiving payment from customers.
Comparing to 2021, where the DSO was 22.48 days, there has been an increase in the collection period in 2023. However, when looking at 2020 and 2019, the DSO was much higher at 35.82 days and 23.47 days, respectively, indicating an improvement in collection efficiency in 2023 compared to those years.
It is important for Travel+Leisure Co to closely monitor and manage its accounts receivable collection process to ensure timely receipt of payments and maintain healthy cash flows. An increasing DSO could indicate potential liquidity issues or credit risks that need to be addressed to improve the company's financial performance and stability.
Peer comparison
Dec 31, 2023