Wyndham Hotels & Resorts Inc (WH)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.20 | 5.80 | 6.40 | 6.36 | 4.41 | |
| DSO | days | 70.25 | 62.97 | 57.02 | 57.37 | 82.83 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.20
= 70.25
The days of sales outstanding (DSO) for Wyndham Hotels & Resorts Inc have shown a decreasing trend over the past few years, which indicates an improvement in the company's efficiency in collecting its accounts receivable.
From December 31, 2020, with a DSO of 82.83 days, the metric decreased significantly to 57.37 days by December 31, 2021. This suggests that the company was able to collect its outstanding sales faster in the following year.
The trend continued with DSO further declining to 57.02 days by December 31, 2022, indicating sustained improvement in the company's receivables management. However, there was a slight increase in DSO to 62.97 days by December 31, 2023, possibly due to changes in sales patterns or collection practices.
By December 31, 2024, the DSO increased to 70.25 days, which may warrant closer monitoring to understand the reasons behind this uptick and ensure efficient accounts receivable management going forward.
Overall, the decreasing trend in DSO from 2020 to 2022 reflects positively on Wyndham Hotels & Resorts Inc's ability to efficiently convert its sales into cash, though the slight increase in 2023 and 2024 indicates the importance of ongoing monitoring and management of accounts receivable to maintain optimal working capital levels.
Peer comparison
Dec 31, 2024