Travel + Leisure Co (TNL)

Short-term

Turnover ratios

Inventory Turnover:

1. The inventory turnover ratio of Travel + Leisure Co has been on an upward trend from 2020 to 2024, indicating an improvement in managing inventory.
2. The ratio increased significantly from 0.10 in March 2020 to 1.49 in December 2023, showing better efficiency in selling inventory.
3. A value above 1 suggests that the company is selling its inventory more than once a year, which is positive for cash flow and profitability.

Receivables Turnover:

1. Data for receivables turnover is unavailable for the period analyzed, which makes it difficult to evaluate the efficiency of the company in collecting its receivables.
2. The absence of data for receivables turnover may suggest that Travel + Leisure Co does not rely heavily on extending credit to customers.

Payables Turnover:

1. Similar to receivables turnover, data for payables turnover is not provided in the dataset, making it challenging to assess the company's payment cycle with suppliers.
2. A higher payables turnover ratio could indicate that the company is paying its suppliers more frequently, potentially benefiting from early payment discounts.

Working Capital Turnover:

1. The working capital turnover ratio of Travel + Leisure Co shows significant fluctuations over the years, with a substantial increase in September 2021 and a sharp decline in December 2022.
2. The ratio peaked at 884.50 in September 2022, indicating a very high level of revenue generated relative to the company's working capital.
3. The fluctuation in working capital turnover suggests variability in how efficiently the company is utilizing its working capital to generate revenue.

Overall, based on the available information, Travel + Leisure Co has shown improvement in managing its inventory efficiently, but further data on receivables and payables turnover would provide a more comprehensive insight into the company's overall operational effectiveness.

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Average number of days

Based on the provided data, Travel + Leisure Co's Days of Inventory on Hand (DOH) has shown a decreasing trend over the years, indicating more efficient management of inventory levels. The company went from holding inventory for over 25,000 days in September 2020 to around 250 days by the end of 2024. This suggests that the company has improved its inventory turnover and is managing its inventory more effectively.

However, no data is available for Days of Sales Outstanding (DSO) and Number of Days of Payables for the company. As a result, we cannot provide an analysis of the company's ability to collect receivables or manage payables based on the available information.

Overall, from the activity ratios perspective, Travel + Leisure Co seems to have made significant improvements in managing its inventory efficiently, but further data on accounts receivable and accounts payable would be needed for a complete analysis of the company's working capital management.

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Long-term

Travel + Leisure Co's fixed asset turnover ratio has exhibited a generally increasing trend over the years, indicating that the company is generating more sales revenue relative to its investment in fixed assets. The ratio rose from 5.48 in March 2020 to 6.54 in December 2024, demonstrating improved efficiency in utilizing fixed assets to generate revenue.

In comparison, the total asset turnover ratio, which measures the company's overall efficiency in generating sales from all assets, has fluctuated but remained relatively stable over the same period. It ranged from 0.28 in December 2020 to 0.57 in December 2024, showing variations in how effectively Travel + Leisure Co is utilizing its total assets to generate revenues.

Overall, the increasing trend in fixed asset turnover indicates that Travel + Leisure Co has been effectively leveraging its fixed assets to drive revenue growth, while the stable total asset turnover suggests a consistent level of efficiency in utilizing all assets to generate sales over the analyzed period.