Wyndham Hotels & Resorts Inc (WH)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | 5.38 | 12.20 | 5.36 | — | — | — | — | — | 8.51 | 4.91 |
| 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 |
| 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 |
| Working capital turnover | 1,381.00 | — | — | — | — | 43.66 | — | 13.06 | 10.77 | 6.60 | 4.47 | 3.82 | 4.85 | 6.58 | 8.57 | 13.70 | 2.35 | 1.96 | 2.34 | 2.73 |
### Analysis of Wyndham Hotels & Resorts Inc Activity Ratios
1. Inventory Turnover:
- Inventory turnover for Wyndham Hotels & Resorts Inc has varied over time. It was 4.91 as of March 31, 2020, increased to 8.51 by June 30, 2020, then dropped to 5.36 by December 31, 2021. The latest available data shows an inventory turnover of 5.38 as of June 30, 2022.
- Overall, there seems to be some volatility in the inventory turnover for the company, indicating potential fluctuations in inventory management efficiency. A higher turnover ratio generally indicates better liquidity and efficient management of inventory.
2. Receivables Turnover:
- Receivables turnover for Wyndham Hotels & Resorts Inc has shown a fluctuating trend over the periods analyzed. It was 6.74 as of March 31, 2020, which decreased to 4.35 by March 31, 2021, before gradually increasing to 5.10 by December 31, 2024.
- The company seems to have seen a mixed performance in collecting its receivables efficiently. Generally, a higher receivables turnover ratio indicates that the company is collecting its outstanding receivables more quickly.
3. Payables Turnover:
- Payables turnover has also shown variability for Wyndham Hotels & Resorts Inc. The turnover ratio was 6.46 as of March 31, 2020, peaked at 15.04 by December 31, 2020, and then fluctuated over subsequent periods.
- The company's payables turnover indicates how quickly it is paying off its suppliers. A higher turnover ratio suggests better creditor management and possibly favorable credit terms with suppliers.
4. Working Capital Turnover:
- Working capital turnover for Wyndham Hotels & Resorts Inc exhibited significant fluctuations over the periods analyzed. The turnover ratio was 2.73 as of March 31, 2020, but increased sharply to 43.66 by September 30, 2023, before reaching an extremely high value of 1,381.00 by December 31, 2024.
- The working capital turnover ratio reflects how efficiently the company is utilizing its working capital to generate sales. The sharp increase seen in this ratio could indicate a change in the company's efficiency in converting working capital into revenue.
In conclusion, the activity ratios of Wyndham Hotels & Resorts Inc suggest various trends in inventory management, receivables collection, payables management, and working capital efficiency. The company may need to focus on maintaining stable turnover ratios and improving efficiency in managing its resources to enhance overall financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | 67.91 | 29.92 | 68.13 | — | — | — | — | — | 42.89 | 74.38 |
| Days of sales outstanding (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 |
| Number of days of payables | days | 39.96 | 64.11 | 69.08 | 66.08 | 34.76 | 51.03 | 70.32 | 37.18 | 43.67 | 40.69 | 40.02 | 32.31 | 37.72 | 64.18 | 66.55 | 24.45 | 24.28 | 35.05 | 33.64 | 56.47 |
Wyndham Hotels & Resorts Inc's financial statement data reveals fluctuations in its activity ratios over the years. The Days of Inventory on Hand (DOH) ratio decreased from 74.38 days as of March 31, 2020, to 29.92 days as of March 31, 2022, indicating a more efficient management of inventory. This trend was followed by an increase to 67.91 days as of June 30, 2022, suggesting potential inventory build-up.
The Days of Sales Outstanding (DSO) ratio, reflecting the average number of days it takes to collect revenue from sales, improved from 54.16 days as of March 31, 2020, to 50.94 days as of March 31, 2022. This indicates a quicker conversion of sales into cash. However, the ratio slightly increased to 71.04 days as of June 30, 2024, suggesting a potential slowdown in collecting receivables.
The Number of Days of Payables ratio, representing the average number of days it takes for a company to pay its suppliers, ranged from 24.28 days as of December 31, 2020, to 70.32 days as of June 30, 2023. This indicates varying payment terms with suppliers over the years. The ratio decreased to 39.96 days as of December 31, 2024, potentially suggesting a quicker payment cycle.
Overall, while improvements were seen in inventory management and collection of receivables, the payment cycle to suppliers showed fluctuations. These activity ratios provide insights into Wyndham Hotels & Resorts Inc's operational efficiency and working capital management practices over the years.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 14.69 | 18.38 | 17.44 | 16.67 | 15.89 | 15.35 | 14.98 | 14.97 | 15.12 | 15.53 | 15.91 | 15.48 | 14.76 | 5.64 | 4.97 | 4.45 | 4.68 | 5.25 | 5.84 | 6.67 |
| Total asset turnover | 0.33 | 0.35 | 0.34 | 0.34 | 0.35 | 0.34 | 0.35 | 0.35 | 0.36 | 0.38 | 0.39 | 0.38 | 0.37 | 0.34 | 0.31 | 0.26 | 0.28 | 0.30 | 0.35 | 0.39 |
Wyndham Hotels & Resorts Inc's fixed asset turnover ratio has shown a declining trend from 6.67 in March 2020 to 14.69 in December 2024, with some fluctuations along the way. The ratio peaked at 18.38 in September 2024 before dropping slightly in the following quarter. This indicates that the company is generating more revenue per dollar of fixed assets over time.
On the other hand, the total asset turnover ratio has also displayed a downward trajectory, starting at 0.39 in March 2020 and ending at 0.33 in December 2024. The ratio fluctuated within a narrow range between 0.26 and 0.39 over the period under consideration. This suggests that the company's efficiency in generating sales from all assets has decreased slightly over time.
Overall, the fixed asset turnover shows an improvement in asset utilization efficiency, while the total asset turnover indicates a slight decline in overall asset productivity for Wyndham Hotels & Resorts Inc during the analyzed period.