Wyndham Hotels & Resorts Inc (WH)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 338,000 | 334,000 | 324,000 | 299,000 | 511,000 |
| Payables | US$ in thousands | 37,000 | 32,000 | 39,000 | 31,000 | 28,000 |
| Payables turnover | 9.14 | 10.44 | 8.31 | 9.65 | 18.25 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $338,000K ÷ $37,000K
= 9.14
The payables turnover ratio measures how efficiently a company is managing its accounts payable. In the case of Wyndham Hotels & Resorts Inc, the payables turnover ratio has shown a decreasing trend over the past five years.
As of December 31, 2020, the payables turnover ratio stood at 18.25, indicating that the company's accounts payable turnover occurred approximately 18.25 times during the year. However, by December 31, 2024, the ratio had decreased to 9.14, suggesting a decline in the efficiency of managing payables.
A lower payables turnover ratio could imply that the company is taking longer to pay its suppliers, which could either indicate strained liquidity or a deliberate strategy to hold onto cash longer. It is important for investors and analysts to further investigate the reasons behind this downward trend in payables turnover for Wyndham Hotels & Resorts Inc.
Peer comparison
Dec 31, 2024