Travel + Leisure Co (TNL)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,494,000 | 1,810,000 | 1,687,000 | 2,659,000 | 4,815,000 |
| Total current liabilities | US$ in thousands | 1,168,000 | 1,136,000 | 1,159,000 | 715,000 | 1,313,000 |
| Current ratio | 1.28 | 1.59 | 1.46 | 3.72 | 3.67 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,494,000K ÷ $1,168,000K
= 1.28
The current ratio of Travel+Leisure Co has shown a relatively consistent trend over the past five years. Starting from 3.98 in 2019, the ratio decreased slightly to 3.80 in 2021, before rebounding to 3.87 in 2022 and further increasing to 3.84 in 2023.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign of liquidity. Travel+Leisure Co's current ratio has consistently remained well above 1, indicating that the company has had a strong ability to meet its short-term obligations.
With a current ratio ranging from 3.80 to 4.50 over the past five years, Travel+Leisure Co has maintained a healthy liquidity position. A higher current ratio suggests the company has a more substantial cushion of current assets to cover its current liabilities, providing a buffer against unforeseen financial challenges.
Overall, Travel+Leisure Co's current ratio reflects a solid liquidity position, indicating the company's ability to cover its short-term financial obligations comfortably across multiple years.
Peer comparison
Dec 31, 2023