Travel + Leisure Co (TNL)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,466,000 | 1,402,000 | 1,372,000 | 1,666,000 | 1,494,000 | 1,387,000 | 1,362,000 | 1,354,000 | 1,810,000 | 1,315,000 | 1,433,000 | 1,510,000 | 1,687,000 | 1,616,000 | 1,667,000 | 1,681,000 | 2,659,000 | 2,607,000 | 2,330,000 | 2,236,000 |
| Total current liabilities | US$ in thousands | 524,000 | 1,284,000 | 1,291,000 | 1,315,000 | 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 |
| Current ratio | 2.80 | 1.09 | 1.06 | 1.27 | 1.28 | 1.05 | 1.03 | 1.05 | 1.59 | 1.00 | 1.02 | 1.09 | 1.46 | 1.15 | 1.15 | 1.18 | 3.72 | 1.75 | 2.40 | 1.48 |
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, which measures the company's ability to cover its short-term liabilities with its current assets, has exhibited some fluctuations over the reporting periods. The ratio has ranged from a low of 1.00 to a high of 3.72 during the observation period.
In general, a current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a healthy liquidity position. A ratio below 1 may indicate potential difficulties in meeting short-term obligations.
The company's current ratio peaked at 3.72 on December 31, 2020, indicating a strong ability to cover short-term obligations with current assets. However, the ratio declined in subsequent periods, reaching a low of 1.00 on September 30, 2022, before showing some fluctuation but generally staying above 1.
The current ratio as of December 31, 2024, stood at 2.80, reflecting an improvement in the company's liquidity position compared to the previous reporting periods. It is important for investors and stakeholders to monitor changes in the current ratio over time to assess the company's liquidity and financial health.
Peer comparison
Dec 31, 2024