Travel + Leisure Co (TNL)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,692,000 | 1,611,000 | 1,282,000 | 1,462,000 | 186,000 |
| Payables | US$ in thousands | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,692,000K ÷ $—K
= —
The payables turnover ratio measures how efficiently Travel+Leisure Co is managing its accounts payable by indicating how many times the company pays off its suppliers within a given period. A higher payables turnover ratio signifies that the company is settling its obligations to suppliers more quickly.
Analyzing the trend in Travel+Leisure Co's payables turnover ratio over the past five years, we observe fluctuations. In 2023, the payables turnover ratio decreased to 1.82 from 2.42 in 2022. This decline may suggest that the company took longer to pay off its suppliers in 2023 compared to the previous year, which could potentially strain its relationships with vendors if not managed properly.
Comparing the 2023 and 2021 figures, we also see a slight decrease in the payables turnover ratio from 2.53 to 1.82. This declining trend indicates a potential slowdown in Travel+Leisure Co's payments to suppliers, which could impact cash flow management and supplier relationships.
Notably, in 2020, the payables turnover ratio was significantly low at 0.03, which may indicate inefficient accounts payable management or payment delays during that period. However, the ratio improved significantly in the following years, suggesting that the company made efforts to rectify this issue and improve its payment practices.
Overall, Travel+Leisure Co's payables turnover ratio fluctuated over the past five years, signaling potential variations in the company's accounts payable management efficiency. Further analysis of the underlying factors driving these fluctuations could provide insights into the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2023