Wyndham Hotels & Resorts Inc (WH)
Working capital 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 |
| Total current assets | US$ in thousands | 373,000 | 545,000 | 720,000 | 900,000 | 499,000 |
| Total current liabilities | US$ in thousands | 459,000 | 406,000 | 397,000 | 346,000 | 462,000 |
| Working capital turnover | — | 10.78 | 4.85 | 2.35 | 55.49 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,397,000K ÷ ($373,000K – $459,000K)
= —
Wyndham Hotels & Resorts Inc's working capital turnover has experienced fluctuations over the past five years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. In 2019, the ratio was significantly high at 55.49, indicating that the company was generating $55.49 in sales for every $1 of working capital invested. This exceptionally high ratio could be due to unique circumstances, such as a large increase in sales relative to working capital.
In the subsequent years, the working capital turnover ratio decreased significantly to 2.35 in 2020 and 4.85 in 2021, which suggests a less efficient utilization of working capital in generating sales revenue. It is important to note that a lower ratio could be attributed to various factors, such as inefficient management of working capital, slower sales growth, or changes in the company's operations.
The ratio then increased to 10.78 in 2022, indicating an improvement in the company's ability to generate sales relative to its working capital. The absence of a value for 2023 in the table may be due to the unavailability of the data at the time of analysis or a data reporting issue.
Overall, while the working capital turnover has shown fluctuations over the years, it is essential for Wyndham Hotels & Resorts Inc to analyze the reasons behind these changes to ensure effective management of its working capital and optimize its financial performance.
Peer comparison
Dec 31, 2023