Travel + Leisure Co (TNL)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,466,000 | 1,494,000 | 1,810,000 | 1,687,000 | 2,659,000 |
| Total current liabilities | US$ in thousands | 524,000 | 1,168,000 | 1,136,000 | 1,159,000 | 715,000 |
| Current ratio | 2.80 | 1.28 | 1.59 | 1.46 | 3.72 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,466,000K ÷ $524,000K
= 2.80
The current ratio of Travel + Leisure Co has fluctuated over the past five years. As of December 31, 2020, the current ratio stood at a healthy 3.72, indicating the company had $3.72 in current assets to cover each dollar of current liabilities. However, there was a notable decrease in the current ratio by the end of 2021 to 1.46, suggesting a potential liquidity challenge as the ratio dropped below 2.
Subsequently, the current ratio improved by December 31, 2022, reaching 1.59, although it still remained below the 2020 level. By the end of 2023, the current ratio further decreased to 1.28, indicating a potential strain on the company's ability to meet short-term obligations with its current assets.
However, there was a significant improvement by December 31, 2024, with the current ratio soaring to 2.80, showcasing a strengthened liquidity position compared to the previous year. Overall, fluctuations in the current ratio of Travel + Leisure Co over the analyzed period may reflect varying levels of efficiency in managing current assets and liabilities.
Peer comparison
Dec 31, 2024