Travel + Leisure Co (TNL)

The cash conversion cycle of Travel+Leisure Co has fluctuated over the past five years, indicating varying efficiency in managing its cash flow processes.

In 2019, the company had an unusually long cash conversion cycle of 234,548.32 days, suggesting significant delays in converting resources into cash. This could be due to inefficient inventory management, slow collection of receivables, or extended payment periods to creditors.

Subsequently, in 2020, there was a significant improvement in the cash conversion cycle, which dropped to 2,233.10 days. This sharp decrease may indicate better working capital management, leading to quicker conversion of investments in raw materials to cash from sales.

However, in 2021 and 2022, the cash conversion cycle saw a slight increase to 2,705.34 days and 2,645.75 days, respectively. This uptrend suggests that the company may have experienced challenges in maintaining the efficiency gained in the previous year.

Finally, in 2023, there was a further increase in the cash conversion cycle to 2,945.17 days. This change indicates a possible lengthening of the time it takes for Travel+Leisure Co to convert investments in inventory and receivables into cash, which could impact the company's liquidity and overall financial health.

Overall, the company needs to closely monitor and improve its cash conversion cycle to ensure efficient management of working capital and optimize its cash flow processes for sustainable growth.

Peer comparison

Dec 31, 2023