Wyndham Hotels & Resorts Inc (WH)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 283,000 | 290,000 | 317,000 | 297,000 |
| Payables | US$ in thousands | 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 | 30,000 | 52,000 | 60,000 | 57,000 |
| Payables turnover | 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 | 9.43 | 5.58 | 5.28 | 5.21 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $336,000K ÷ $32,000K
= 10.50
The payables turnover ratio measures how efficiently a company manages its accounts payable by calculating how many times a company pays off its average accounts payable during a period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently.
Analyzing Wyndham Hotels & Resorts Inc's payables turnover over the past eight quarters, we can observe fluctuations in the ratio. In Q4 2023, the payables turnover ratio increased significantly to 17.78, which suggests that the company paid off its suppliers approximately 17.78 times during that quarter. This could indicate that Wyndham Hotels & Resorts Inc managed its accounts payable exceptionally well during this period, making timely payments to suppliers.
In the preceding quarters, the payables turnover ratios ranged from 9.06 to 16.48, showing some variability in how quickly the company paid off its suppliers. For instance, in Q2 2023, the payables turnover dropped to 9.06, indicating a potential delay in paying suppliers compared to the other quarters.
Overall, a high payables turnover ratio may demonstrate effective cash flow management and strong supplier relationships. However, it is essential to consider industry benchmarks and company-specific factors when interpreting this ratio. Further analysis and comparison with industry peers would provide a clearer understanding of Wyndham Hotels & Resorts Inc's payables management efficiency.
Peer comparison
Dec 31, 2023