Wyndham Hotels & Resorts Inc (WH)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.10	5.01	5.14	5.58	5.80	5.14	5.46	6.25	6.40	6.26	6.43	7.17	6.36	5.04	4.46	4.35	4.41	4.60	5.47	6.74
DSO	days	71.63	72.80	71.04	65.40	62.92	71.07	66.88	58.42	57.05	58.30	56.79	50.94	57.37	72.45	81.91	83.90	82.70	79.32	66.71	54.16

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.10
= 71.63

The Days of Sales Outstanding (DSO) is a measure that indicates the average number of days it takes for a company to collect its accounts receivable. For Wyndham Hotels & Resorts Inc, the DSO has fluctuated over the periods provided, ranging from a low of 50.94 days on March 31, 2022, to a high of 83.90 days on March 31, 2021.

Overall, it is observed that the DSO has decreased since its peak in March 31, 2021, reaching a relatively stable range. This decrease can be indicative of improvements in the company's accounts receivable collection process, efficiency in managing credit sales, or changes in customer payment behaviors.

The downward trend in DSO suggests that Wyndham Hotels & Resorts Inc is becoming more effective in converting its credit sales into cash, which is a positive sign of liquidity management. A lower DSO can also indicate that the company has tighter credit policies or is successful in collecting outstanding receivables promptly.

For investors and stakeholders, a decreasing trend in DSO is generally viewed favorably as it implies better cash flow management and potentially lower credit risk. However, despite the improvements in DSO, it is essential to consider this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial health and performance.