Travel + Leisure Co (TNL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 3.67 | 2.58 | 2.53 | 12.59 |
| Quick 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 | 2.67 | 1.85 | 1.80 | 10.15 |
| 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 |
Travel+Leisure Co has shown consistent and generally strong liquidity ratios over the past eight quarters. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has fluctuated slightly but has generally been above 3, indicating that the company has more than enough current assets to meet its short-term liabilities.
The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. While the quick ratio has varied more significantly, it has remained relatively healthy, with values above 0.4. This suggests that Travel+Leisure Co has an acceptable level of liquid assets to cover its immediate liabilities.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has also shown a positive trend, with values consistently above 0.3. This indicates that the company holds a sufficient amount of cash to meet its short-term obligations without relying on other current assets.
Overall, the liquidity ratios of Travel+Leisure Co suggest that the company is well-positioned to meet its short-term financial commitments and maintain operational stability.
Additional liquidity measure
| 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 conversion cycle | days | 244.84 | 248.60 | 252.57 | 257.26 | 270.46 | 278.12 | 304.04 | 305.02 | 346.21 | 188.90 | 229.78 | 278.51 | 336.29 | 25,569.21 | 8,183.68 | 3,585.24 | 2,647.20 | 2,595.74 | 2,693.45 | 2,878.20 |
The cash conversion cycle of Travel+Leisure Co has exhibited fluctuations over the past eight quarters. It is a metric that indicates the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
In the most recent quarter, Q4 2023, the cash conversion cycle increased to 2,945.17 days, reflecting a longer period compared to the previous quarter, Q3 2023, which stood at 2,869.32 days. This suggests that the company took more time to convert its investments into cash during Q4 2023.
Looking at the trend over the past two years, there have been fluctuations in the cash conversion cycle, with some quarters showing longer cycles than others. For example, in Q2 2023 and Q1 2023, the cash conversion cycles were 2,952.28 days and 2,739.60 days respectively, which were relatively longer compared to Q4 2022 and Q3 2022 where the cycles were 2,645.75 days and 2,244.35 days.
Overall, the company's cash conversion cycle has shown variability, with periods of longer and shorter cycles. It is essential for Travel+Leisure Co to closely monitor and manage its cash conversion cycle to ensure efficient use of its resources and maximize cash flow generation.