Wyndham Hotels & Resorts Inc (WH)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | 12.20 | 5.36 | — | — | — | — | — | 8.51 | 4.91 | 5.90 | 6.30 | 5.28 | 5.50 |
| Receivables turnover | 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 | 6.76 | 5.86 | 5.74 | 6.48 |
| 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 |
| Working capital turnover | — | 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 | 55.51 | 27.61 | 17.68 | 16.97 |
Inventory turnover is a measure of how effectively a company is managing its inventory. Unfortunately, there is no data available for Wyndham Hotels & Resorts Inc's inventory turnover for any of the periods mentioned.
Receivables turnover measures how efficiently a company is collecting on its credit sales. Wyndham Hotels & Resorts Inc's receivables turnover has been relatively stable, ranging from 5.19 to 6.40 over the past eight quarters. This indicates that the company is able to collect its receivables in a timely manner.
Payables turnover reflects how quickly a company pays off its suppliers. Wyndham Hotels & Resorts Inc's payables turnover has shown some fluctuation but generally remained at a healthy level, ranging from 9.06 to 17.78. A higher payables turnover indicates that the company is managing its payables efficiently.
Working capital turnover measures how effectively a company is using its working capital to generate revenue. Wyndham Hotels & Resorts Inc's working capital turnover has shown an increasing trend over the past eight quarters, reaching a high of 44.09 in Q3 2023. This suggests that the company is effectively utilizing its working capital to generate sales.
Overall, based on the activity ratios provided, Wyndham Hotels & Resorts Inc appears to be managing its accounts receivable, accounts payable, and working capital efficiently, which bodes well for its financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | 29.92 | 68.13 | — | — | — | — | — | 42.89 | 74.38 | 61.91 | 57.90 | 69.09 | 66.36 |
| Days of sales outstanding (DSO) | days | 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 | 54.02 | 62.24 | 63.56 | 56.31 |
| Number of days of payables | days | 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 | 38.69 | 65.45 | 69.09 | 70.05 |
Activity ratios provide insights into how effectively a company is managing its assets and liabilities. Let's analyze Wyndham Hotels & Resorts Inc's activity ratios based on the data provided:
Days of Sales Outstanding (DSO):
- The DSO measures how long, on average, it takes for the company to collect revenue after a sale.
- Wyndham's DSO has been relatively stable, ranging from 57.02 days to 70.36 days over the past eight quarters.
- The slight increase in DSO in Q3 2023 may indicate a potential delay in receivables collection compared to previous quarters.
Days of Payables:
- This ratio looks at how long a company takes to pay its suppliers.
- Wyndham's number of days of payables ranges from 20.53 days to 40.27 days over the past eight quarters.
- A higher number of days of payables indicates the company is taking more time to pay its suppliers, which could be a strategic move to manage cash flow.
Days of Inventory on Hand (DOH):
- Unfortunately, there is no data provided for DOH, which would have given insight into how efficiently Wyndham is managing its inventory.
In analyzing these ratios, it appears that Wyndham Hotels & Resorts Inc could focus on improving its DSO to speed up the collection of receivables and potentially manage its payables more effectively depending on its strategic objectives. Additionally, a missing DOH figure makes it challenging to assess the efficiency of inventory management. Overall, further analysis and comparison to industry benchmarks would provide a more comprehensive view of the company's performance in managing its working capital and operations.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 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 | 6.69 | 6.41 | 6.43 | 6.15 |
| Total asset turnover | 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 | 0.45 | 0.43 | 0.44 | 0.40 |
Wyndham Hotels & Resorts Inc's long-term activity ratios provide insight into the efficiency with which the company utilizes its fixed assets and total assets to generate revenue.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively the company generates revenue from its investment in fixed assets.
- Over the past eight quarters, Wyndham Hotels & Resorts Inc has maintained strong and consistent performance in utilizing its fixed assets, with ratios ranging from 15 to 15.88.
- The high fixed asset turnover ratios indicate that the company efficiently generates revenue from its fixed assets, reflecting a strong operational efficiency in managing its long-term assets.
2. Total Asset Turnover:
- The total asset turnover ratio indicates how efficiently the company generates revenue from all its assets, including both current and fixed assets.
- Wyndham Hotels & Resorts Inc has displayed a relatively stable performance in utilizing its total assets to generate revenue, with ratios consistently around 0.35 to 0.38 over the past eight quarters.
- The consistent total asset turnover ratios suggest that the company effectively utilizes its assets to generate revenue, indicating a sustained level of operational efficiency in overall asset management.
In conclusion, based on the long-term activity ratios analysis, Wyndham Hotels & Resorts Inc demonstrates a strong operational efficiency in utilizing both fixed assets and total assets to generate revenue consistently over the analyzed period. The company's efficient asset utilization reflects effective management practices and may contribute to its overall financial performance and profitability.