Travel + Leisure Co (TNL)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 244.84 | 248.60 | 252.57 | 257.26 | 270.46 | 278.12 | 304.04 | 305.02 | 346.21 | 188.90 | 229.78 | 278.51 | 336.29 | 25,569.21 | 8,183.68 | 3,585.24 | 2,365.59 | 2,298.36 | 2,399.14 | 2,432.66 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 281.60 | 297.38 | 294.32 | 603.97 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 158.43 |
| Cash conversion cycle | days | 244.84 | 248.60 | 252.57 | 257.26 | 270.46 | 278.12 | 304.04 | 305.02 | 346.21 | 188.90 | 229.78 | 278.51 | 336.29 | 25,569.21 | 8,183.68 | 3,585.24 | 2,647.20 | 2,595.74 | 2,693.45 | 2,878.20 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 244.84 + — – —
= 244.84
The cash conversion cycle of Travel+Leisure Co has exhibited fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 2,945.17 days, which increased from the previous quarter (Q3 2023) where it was 2,869.32 days. This indicates that the company took longer to convert its investments in inventory and other resources into cash in Q4 2023 compared to the prior quarter.
Looking further back, the cash conversion cycle was also high in Q2 2023 at 2,952.28 days, but showed a slight improvement in Q1 2023 at 2,739.60 days. This suggests that the company faced challenges in efficiently managing its working capital and converting it into cash during the second quarter of 2023.
Comparing the most recent data to the same quarter of the previous year, there has been an upward trend in the cash conversion cycle of Travel+Leisure Co. In Q4 2022, the cycle was 2,645.75 days, which indicates a noticeable increase over the past year.
Overall, the increasing trend in the cash conversion cycle of the company suggests that they may be facing challenges in efficiently managing their receivables, inventory, and payables. It is important for Travel+Leisure Co to closely monitor and improve their working capital management processes to shorten their cash conversion cycle and enhance their overall liquidity and operational efficiency.
Peer comparison
Dec 31, 2023