Travel + Leisure Co (TNL)

The solvency ratios of Travel+Leisure Co, as reflected in the table provided, show a consistent trend over the past five years. The debt-to-assets ratio has varied slightly, ranging from 0.75 in 2019 to 0.84 in 2020 and 2023. This ratio indicates that, on average, 84% of the company's assets are financed by debt, implying a moderate level of leverage.

Similarly, the debt-to-capital ratio has been relatively stable, hovering around 1.18 to 1.19 over the same period. This ratio suggests that around 119% of the company's capital structure is comprised of debt, reflecting a balanced mix of debt and equity financing.

Notably, the table does not provide data for the debt-to-equity ratio and the financial leverage ratio, which are also important solvency metrics. These ratios would have provided further insights into the company's financial health and its ability to meet its long-term obligations.

In conclusion, based on the available solvency ratios, Travel+Leisure Co appears to maintain a reasonable level of leverage and a balanced capital structure. However, a more comprehensive analysis incorporating additional solvency ratios would provide a more holistic assessment of the company's financial stability and debt management practices.

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Coverage ratios

The interest coverage ratio of Travel+Leisure Co has shown fluctuation over the past five years. In 2023, the interest coverage ratio was 3.14, indicating that the company generated 3.14 times more operating income than it needed to cover its interest expenses. Although this ratio decreased from the previous year's 3.59, it still reflects a healthy ability to meet interest obligations.

In 2022 and 2021, the company also maintained strong interest coverage ratios of 3.59 and 3.16, respectively. This demonstrates consistent profitability and cash flow generation relative to the interest payments due. However, it is worth noting that in 2020, the interest coverage ratio dropped significantly to 0.40, suggesting a potential strain on the company's ability to cover interest expenses with its operating income during that period.

The highest interest coverage ratio in the provided data was observed in 2019 at 5.32, indicating a robust financial position with ample earnings to cover interest costs. Overall, while there have been fluctuations in the interest coverage ratio over the years, Travel+Leisure Co has generally maintained an acceptable level of financial health in terms of meeting its interest obligations.