Travel + Leisure Co (TNL)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,864,000 | 3,750,000 | 3,567,000 | 3,134,000 | 2,160,000 |
| Total current assets | US$ in thousands | 1,466,000 | 1,494,000 | 1,810,000 | 1,687,000 | 2,659,000 |
| Total current liabilities | US$ in thousands | 524,000 | 1,168,000 | 1,136,000 | 1,159,000 | 715,000 |
| Working capital turnover | 4.10 | 11.50 | 5.29 | 5.94 | 1.11 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,864,000K ÷ ($1,466,000K – $524,000K)
= 4.10
The working capital turnover of Travel + Leisure Co has shown significant fluctuation over the past five years. In December 2020, the working capital turnover was 1.11, indicating that the company generated $1.11 in revenue for every dollar of working capital invested.
However, there was a substantial improvement in efficiency in the subsequent years. By the end of December 2021, the working capital turnover increased to 5.94, suggesting that the company was able to generate $5.94 in revenue for each dollar of working capital. This improvement in efficiency was sustained in December 2022, with the working capital turnover at 5.29.
The company's working capital management further improved significantly by December 2023, as the working capital turnover surged to 11.50. This high ratio indicates that Travel + Leisure Co generated $11.50 in revenue for every dollar of working capital invested, reflecting a robust operational efficiency.
However, there was a notable decline in the efficiency of working capital management by the end of December 2024, with the working capital turnover dropping to 4.10. Despite this decrease, the company still showed a relatively efficient use of working capital compared to the base year of 2020.
Overall, the trend in Travel + Leisure Co's working capital turnover suggests a varying level of efficiency in utilizing its working capital to generate revenue over the past five years, with substantial improvements and occasional declines.
Peer comparison
Dec 31, 2024