Wyndham Hotels & Resorts Inc (WH)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 338,000 | 353,000 | 354,000 | 348,000 | 336,000 | 329,000 | 327,000 | 324,000 | 326,000 | 296,000 | 301,000 | 305,000 | 300,000 | 182,000 | 181,000 | 403,000 | 421,000 | 427,000 | 434,000 | 265,000 |
| Payables | US$ in thousands | 37,000 | 62,000 | 67,000 | 63,000 | 32,000 | 46,000 | 63,000 | 33,000 | 39,000 | 33,000 | 33,000 | 27,000 | 31,000 | 32,000 | 33,000 | 27,000 | 28,000 | 41,000 | 40,000 | 41,000 |
| Payables turnover | 9.14 | 5.69 | 5.28 | 5.52 | 10.50 | 7.15 | 5.19 | 9.82 | 8.36 | 8.97 | 9.12 | 11.30 | 9.68 | 5.69 | 5.48 | 14.93 | 15.04 | 10.41 | 10.85 | 6.46 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $338,000K ÷ $37,000K
= 9.14
The payables turnover ratio for Wyndham Hotels & Resorts Inc has fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio measures how efficiently the company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable balance. A higher turnover ratio indicates that the company is paying its suppliers more quickly.
From the data provided, we observe that the payables turnover ratio ranged from a low of 5.19 on June 30, 2023, to a high of 15.04 on December 31, 2020. Generally, a higher turnover ratio is preferred as it signifies that the company is efficiently managing its payables. However, a very high turnover ratio could also indicate aggressive payment terms that may strain relationships with suppliers.
The trend in the payables turnover ratio for Wyndham Hotels & Resorts Inc shows some variability, with fluctuations occurring in alternating periods. For instance, the ratio decreased from 10.85 on June 30, 2020, to 5.48 on June 30, 2021, and subsequently increased to 11.30 on March 31, 2022. This fluctuation could be influenced by changes in business operations, payment policies, or supplier relationships.
Overall, it is essential for Wyndham Hotels & Resorts Inc to carefully monitor its payables turnover ratio to ensure that it strikes a balance between managing cash flow effectively and maintaining positive relationships with suppliers. A consistent and sustainable payables turnover ratio can contribute to the company's financial stability and operational efficiency.
Peer comparison
Dec 31, 2024