Travel + Leisure Co (TNL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 167,000 | 194,000 | 166,000 | 479,000 | 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 |
| Short-term investments | US$ in thousands | 18,000 | — | — | — | 19,000 | — | — | — | 18,000 | — | — | — | 21,000 | — | — | — | 26,000 | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.35 | 0.15 | 0.13 | 0.36 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($167,000K
+ $18,000K
+ $—K)
÷ $524,000K
= 0.35
The quick ratio of Travel + Leisure Co has exhibited fluctuations over the reported periods, ranging from a low of 0.13 to a high of 1.71. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A ratio below 1.0 may indicate potential liquidity issues, as the company may struggle to fulfill its short-term liabilities without relying on inventory sales.
The quick ratio generally stayed below 1.0 for most of the periods, indicating potential challenges in meeting immediate financial obligations with readily available assets. However, there were periods where the ratio improved, such as December 31, 2020, where it reached its highest level of 1.71, suggesting a stronger liquidity position at that time.
In the most recent period, the quick ratio was reported at 0.35 as of December 31, 2024, which indicates that Travel + Leisure Co's ability to cover short-term obligations with its liquid assets, excluding inventory, had improved compared to previous periods but still remains below 1.0. It would be important to monitor this ratio over time to assess the company's ongoing liquidity position and ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024