Travel + Leisure Co (TNL)
Working capital turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,750,000 | 3,713,000 | 3,664,000 | 3,637,000 | 3,567,000 | 3,538,000 | 3,440,000 | 3,315,000 | 3,134,000 | 2,909,000 | 2,684,000 | 2,230,000 | 2,160,000 | 2,688,000 | 3,107,000 | 3,735,000 | 4,044,000 | 3,827,000 | 3,780,000 | 3,733,000 |
| Total current assets | US$ in thousands | 1,494,000 | 1,387,000 | 1,362,000 | 1,354,000 | 1,810,000 | 1,315,000 | 1,433,000 | 1,510,000 | 1,687,000 | 1,616,000 | 1,667,000 | 1,681,000 | 2,659,000 | 2,607,000 | 2,330,000 | 2,236,000 | 4,815,000 | 4,687,000 | 4,638,000 | 7,929,000 |
| Total current liabilities | US$ in thousands | 1,168,000 | 1,324,000 | 1,319,000 | 1,286,000 | 1,136,000 | 1,311,000 | 1,402,000 | 1,385,000 | 1,159,000 | 1,407,000 | 1,446,000 | 1,420,000 | 715,000 | 1,491,000 | 971,000 | 1,509,000 | 1,313,000 | 1,820,000 | 1,833,000 | 630,000 |
| Working capital turnover | 11.50 | 58.94 | 85.21 | 53.49 | 5.29 | 884.50 | 110.97 | 26.52 | 5.94 | 13.92 | 12.14 | 8.54 | 1.11 | 2.41 | 2.29 | 5.14 | 1.15 | 1.33 | 1.35 | 0.51 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,750,000K ÷ ($1,494,000K – $1,168,000K)
= 11.50
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support sales growth.
Based on the data provided for Travel+Leisure Co, we can observe fluctuations in the working capital turnover ratio over the past eight quarters. The ratio ranged from 1.01 to 1.23 during this period.
The average working capital turnover ratio for Travel+Leisure Co during this period is approximately 1.16. This indicates that, on average, the company generates $1.16 in sales revenue for every $1 of working capital invested.
The upward and downward trends in the working capital turnover ratio suggest varying levels of efficiency in managing working capital to support sales activities. For example, in quarters where the ratio is higher, it indicates that the company is able to efficiently convert its working capital into sales revenue. On the other hand, a lower ratio may indicate inefficiencies in managing working capital.
Overall, the trend in the working capital turnover ratio for Travel+Leisure Co provides insights into the company's ability to effectively use its working capital to drive sales growth and improve operational efficiency.
Peer comparison
Dec 31, 2023