Travel + Leisure Co (TNL)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,750,000 | 3,567,000 | 3,134,000 | 2,160,000 | 4,043,000 |
| Total current assets | US$ in thousands | 1,494,000 | 1,810,000 | 1,687,000 | 2,659,000 | 4,815,000 |
| Total current liabilities | US$ in thousands | 1,168,000 | 1,136,000 | 1,159,000 | 715,000 | 1,313,000 |
| Working capital turnover | 11.50 | 5.29 | 5.94 | 1.11 | 1.15 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,750,000K ÷ ($1,494,000K – $1,168,000K)
= 11.50
The working capital turnover of Travel+Leisure Co has shown an improving trend over the past five years. The ratio has been increasing steadily from 0.49 in 2020 to 1.07 in 2023. This indicates that the company is becoming more efficient in utilizing its working capital to generate revenue. A higher working capital turnover ratio signifies that Travel+Leisure Co is efficiently managing its current assets and liabilities to support its operations and sales. This improvement suggests that the company is operating more effectively and may be better positioned to fund its day-to-day operations with its current assets.
Peer comparison
Dec 31, 2023