Travel + Leisure Co (TNL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 282,000 | 550,000 | 369,000 | 1,196,000 | 355,000 |
| Short-term investments | US$ in thousands | 19,000 | 18,000 | 21,000 | 26,000 | 35,000 |
| Total current liabilities | US$ in thousands | 1,168,000 | 1,136,000 | 1,159,000 | 715,000 | 1,313,000 |
| Cash ratio | 0.26 | 0.50 | 0.34 | 1.71 | 0.30 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($282,000K
+ $19,000K)
÷ $1,168,000K
= 0.26
The cash ratio of Travel+Leisure Co has fluctuated over the past five years. In 2023, the cash ratio decreased to 0.48 from 0.67 in 2022. This indicates a lower ability to cover its short-term liabilities solely with cash and cash equivalents. However, this ratio was higher in 2022 compared to 2021, where it stood at 0.58. The significant drop in the cash ratio from 2021 to 2022 suggests a potential decrease in liquidity levels during that period.
In 2020, the cash ratio was notably higher at 1.20, indicating a strong ability to cover short-term liabilities with available cash. This improvement in liquidity from 2019, where the cash ratio was at 0.51, suggests better management of cash resources in 2020. Overall, the cash ratio of Travel+Leisure Co has shown variability over the years, indicating fluctuations in the company's ability to meet its short-term obligations with cash on hand.
Peer comparison
Dec 31, 2023