Travel + Leisure Co (TNL)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 167,000 | 282,000 | 550,000 | 369,000 | 1,196,000 |
| Short-term investments | US$ in thousands | 18,000 | 19,000 | 18,000 | 21,000 | 26,000 |
| Total current liabilities | US$ in thousands | 524,000 | 1,168,000 | 1,136,000 | 1,159,000 | 715,000 |
| Cash ratio | 0.35 | 0.26 | 0.50 | 0.34 | 1.71 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($167,000K
+ $18,000K)
÷ $524,000K
= 0.35
The cash ratio of Travel + Leisure Co has fluctuated over the past five years. Starting at 1.71 on December 31, 2020, the company had a strong ability to cover its short-term liabilities with its cash and cash equivalents. However, this ratio declined to 0.34 by December 31, 2021, indicating a significant decrease in the amount of cash relative to current liabilities.
Although there was a slight improvement to 0.50 by December 31, 2022, the cash ratio remained relatively low, suggesting that Travel + Leisure Co may have struggled to maintain sufficient liquid assets to meet short-term obligations. This was further confirmed by a decrease to 0.26 by December 31, 2023, indicating a potential liquidity challenge for the company.
By December 31, 2024, the cash ratio increased slightly to 0.35, but it still remained below the level observed at the beginning of the period. Overall, the trend in the cash ratio of Travel + Leisure Co reflects fluctuations in the company's ability to cover short-term liabilities with its cash holdings, highlighting the importance of monitoring liquidity management and cash flow strategies.
Peer comparison
Dec 31, 2024