Wyndham Hotels & Resorts Inc (WH)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,397,000 | 1,498,000 | 1,565,000 | 1,300,000 | 2,053,000 |
| Receivables | US$ in thousands | 241,000 | 234,000 | 246,000 | 295,000 | 304,000 |
| Receivables turnover | 5.80 | 6.40 | 6.36 | 4.41 | 6.75 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,397,000K ÷ $241,000K
= 5.80
The receivables turnover ratio for Wyndham Hotels & Resorts Inc has exhibited fluctuations over the past five years. In 2023, the ratio decreased to 5.80, compared to 6.40 in 2022 and 6.36 in 2021. This indicates that the company collected its accounts receivable approximately 5.80 times during the year.
A higher receivables turnover ratio is generally preferred as it suggests that the company is efficient in collecting outstanding payments from customers. The decrease in the ratio from 2022 to 2023 may indicate a slowdown in the collection of receivables, which could potentially impact the company's cash flow and liquidity position.
Further analysis would be needed to understand the reasons behind the fluctuation in the receivables turnover ratio, such as changes in credit policies, customer base, or overall economic conditions affecting the industry. It is important for investors and stakeholders to monitor this ratio closely to assess the company's effectiveness in managing its accounts receivable and maintaining healthy cash flows.
Peer comparison
Dec 31, 2023