Wyndham Hotels & Resorts Inc (WH)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 334,000 | 324,000 | 299,000 | 511,000 | 429,000 |
| Payables | US$ in thousands | 32,000 | 39,000 | 31,000 | 28,000 | 30,000 |
| Payables turnover | 10.44 | 8.31 | 9.65 | 18.25 | 14.30 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $334,000K ÷ $32,000K
= 10.44
Wyndham Hotels & Resorts Inc's payables turnover has shown a fluctuating trend over the past five years. The payables turnover ratio indicates how efficiently a company manages its accounts payable.
In 2023, the payables turnover ratio was 17.78, reflecting an improvement from the previous year. This suggests that Wyndham Hotels & Resorts Inc was able to pay off its suppliers more frequently during the year, which could indicate effective cash flow management or negotiation of favorable credit terms.
Comparing to 2022 where the payables turnover ratio was 13.44, 2023 indicates a significant increase in the rate at which the company settled its payables.
In 2021 and 2020, Wyndham Hotels & Resorts Inc also demonstrated efficient management of payables with turnover ratios of 14.52 and 14.96, respectively.
However, the payables turnover ratio was highest in 2019 at 18.77, indicating that the company was paying off its suppliers at a faster rate compared to the subsequent years.
Overall, a higher payables turnover ratio signifies better liquidity management as the company is settling its payables more frequently, which could be advantageous in terms of cash flow and supplier relationships.
Peer comparison
Dec 31, 2023