Travel + Leisure Co (TNL)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,865,000 | 3,830,000 | 3,823,000 | 3,787,000 | 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 |
| Total current assets | US$ in thousands | 1,466,000 | 1,402,000 | 1,372,000 | 1,666,000 | 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 |
| Total current liabilities | US$ in thousands | 524,000 | 1,284,000 | 1,291,000 | 1,315,000 | 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 |
| Working capital turnover | 4.10 | 32.46 | 47.20 | 10.79 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,865,000K ÷ ($1,466,000K – $524,000K)
= 4.10
The working capital turnover ratio for Travel + Leisure Co fluctuated significantly over the given period. The ratio reflects how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.
At the beginning of the analyzed period in March 2020, the working capital turnover stood at 5.14. It then decreased to 2.29 by June 2020 and continued to hover around 2 to 5 in the following quarters of 2020. In March 2021, there was a significant increase to 8.54, indicating improved efficiency in utilizing working capital for sales generation.
The ratio showed a substantial surge in the second half of 2021, reaching as high as 884.50 by September 2022. Such a dramatic increase could be attributed to various factors such as changes in sales volume, working capital management strategies, or acquisitions.
In the following periods up to December 2024, the working capital turnover ratio fluctuated significantly, ranging between 4.10 and 85.21. These fluctuations may reflect changes in the company's operational efficiency, business environment, or overall financial performance.
Overall, the working capital turnover of Travel + Leisure Co exhibited volatility and notable fluctuations during the analyzed period, showcasing varying levels of efficiency in utilizing working capital for generating sales revenue.
Peer comparison
Dec 31, 2024