Wyndham Hotels & Resorts Inc (WH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 5.34 | — | 8.94 |
| Receivables turnover | 5.80 | 6.40 | 6.36 | 4.41 | 6.75 |
| Payables turnover | 10.44 | 8.31 | 9.65 | 18.25 | 14.30 |
| Working capital turnover | — | 10.78 | 4.85 | 2.35 | 55.49 |
Activity ratios provide insights into how efficiently a company manages its assets and liabilities to generate sales.
1. Receivables Turnover:
- Wyndham Hotels & Resorts Inc's receivables turnover has fluctuated over the past five years, ranging from a low of 4.41 in 2020 to a high of 6.75 in 2019.
- A higher turnover ratio indicates that the company is collecting its accounts receivable more quickly, which is generally favorable.
- The decreasing trend from 2022 to 2023 may suggest that the company is taking longer to collect its receivables, which could potentially impact its cash flow and liquidity.
2. Payables Turnover:
- The payables turnover ratio reflects how quickly the company is paying its suppliers.
- Wyndham Hotels & Resorts Inc has shown consistent fluctuations in its payables turnover ratio, with a peak of 18.77 in 2019 and a low of 13.44 in 2022.
- A higher payables turnover ratio indicates that the company is paying its suppliers more quickly, which may suggest good supplier relationships or efficient cash management.
3. Working Capital Turnover:
- The working capital turnover ratio measures how effectively the company utilizes its working capital to generate revenue.
- Wyndham Hotels & Resorts Inc's working capital turnover has shown significant variability, with a drastic decrease from 55.49 in 2019 to 2.35 in 2020.
- A higher working capital turnover ratio is generally preferred as it indicates that the company is efficiently using its working capital to generate sales.
- The significant drop in the ratio from 2019 to 2020 may indicate changes in the company's operational efficiency or working capital management practices.
Overall, analyzing these activity ratios provides valuable insights into how efficiently Wyndham Hotels & Resorts Inc is managing its accounts receivable, accounts payable, and working capital to support its sales and operations.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 68.36 | — | 40.84 |
| Days of sales outstanding (DSO) | days | 62.97 | 57.02 | 57.37 | 82.83 | 54.05 |
| Number of days of payables | days | 34.97 | 43.94 | 37.84 | 20.00 | 25.52 |
Days of Inventory on Hand (DOH) for Wyndham Hotels & Resorts Inc are not provided in the data. Moving on to Days of Sales Outstanding (DSO), the trend shows a fluctuation over the past five years. In 2023, DSO increased to 62.97 days from 57.02 days in 2022. However, compared to 2021 and 2020, it remains relatively in line with the historical trend. The DSO was highest in 2020 at 82.83 days and lowest in 2019 at 54.05 days.
The Number of Days of Payables indicates how long it takes the company to pay its suppliers. For Wyndham Hotels & Resorts Inc, this ratio has been inconsistent over the past five years. In 2023, the company took 20.53 days to pay its payables, which is a decrease from 27.17 days in 2022. It was lower compared to 2021 and 2020 but slightly higher than in 2019.
Overall, the analysis of activity ratios for Wyndham Hotels & Resorts Inc reflects a mixed performance in managing its inventory, sales, and payables over the years, suggesting the need for closer monitoring and potential optimization in the working capital management processes.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 15.88 | 15.13 | 14.76 | 4.68 | 6.69 |
| Total asset turnover | 0.35 | 0.36 | 0.37 | 0.28 | 0.45 |
Wyndham Hotels & Resorts Inc's long-term activity ratios exhibit trends that provide insight into the company's efficiency in utilizing its fixed assets and total assets over the past five years.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company generates revenue from its fixed assets.
- Wyndham Hotels & Resorts Inc's fixed asset turnover has been consistently high over the years, indicating the company's efficient utilization of fixed assets to generate revenue.
- The ratio has shown an increasing trend from 2019 to 2021, peaking at 15.88 in 2023, reflecting improved efficiency in generating revenue from fixed assets.
- A high fixed asset turnover ratio suggests that the company is effectively managing and utilizing its property, plant, and equipment to drive sales and profitability.
2. Total Asset Turnover:
- The total asset turnover ratio assesses a company's ability to generate revenue from its total assets.
- Wyndham Hotels & Resorts Inc's total asset turnover has fluctuated over the years, ranging from 0.28 in 2020 to 0.45 in 2019.
- The ratio decreased in 2020, indicating a decrease in revenue generated from total assets during that period.
- In contrast, the total asset turnover ratio increased in 2021, which suggests that the company improved its efficiency in generating revenue from total assets that year.
- The ratio for 2023 stands at 0.35, which indicates that the company generated $0.35 in revenue for every dollar of total assets, showing moderate efficiency in asset utilization.
Overall, while Wyndham Hotels & Resorts Inc has shown variations in its total asset turnover ratio, its consistently high fixed asset turnover ratio demonstrates the company's strong efficiency in generating revenue from fixed assets. This suggests effective management of property, plant, and equipment to drive operational performance and profitability.