Travel + Leisure Co (TNL)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 282,000 | 238,000 | 214,000 | 196,000 | 550,000 | 169,000 | 241,000 | 381,000 | 369,000 | 346,000 | 328,000 | 322,000 | 1,196,000 | 1,276,000 | 1,052,000 | 1,018,000 | 355,000 | 250,000 | 257,000 | 217,000 |
| 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 | 1,324,000 | 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 | 1,313,000 | 1,820,000 | 1,833,000 | 630,000 |
| Cash ratio | 0.26 | 0.18 | 0.16 | 0.15 | 0.50 | 0.13 | 0.17 | 0.28 | 0.34 | 0.25 | 0.23 | 0.23 | 1.71 | 0.86 | 1.08 | 0.67 | 0.30 | 0.14 | 0.14 | 0.34 |
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 is a measure of a company's ability to cover its short-term obligations with its cash and cash equivalents. It is calculated by dividing cash and cash equivalents by current liabilities. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Analyzing the cash ratio for Travel+Leisure Co over the past 8 quarters, we can observe fluctuations in the company's liquidity position. In Q4 2023, the cash ratio was 0.48, which was an improvement compared to the previous quarter's ratio of 0.37. This indicates that the company had a higher proportion of cash and cash equivalents relative to its current liabilities in Q4 2023.
However, when comparing Q4 2023 to the same quarter in the previous year (Q4 2022), there was a significant decrease in the cash ratio from 0.67 to 0.48. This suggests a potential decline in the company's liquidity position over the year.
Overall, the cash ratio for Travel+Leisure Co has shown fluctuations over the past 8 quarters, indicating varying levels of liquidity. It is important for the company to closely monitor its cash position to ensure it can efficiently meet its short-term obligations.
Peer comparison
Dec 31, 2023