Wyndham Hotels & Resorts Inc (WH)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,381,000 | 1,434,000 | 1,413,000 | 1,384,000 | 1,398,000 | 1,397,000 | 1,408,000 | 1,437,000 | 1,497,000 | 1,584,000 | 1,639,000 | 1,641,000 | 1,565,000 | 1,461,000 | 1,328,000 | 1,192,000 | 1,302,000 | 1,491,000 | 1,718,000 | 1,995,000 |
| Total current assets | US$ in thousands | 467,000 | 445,000 | 432,000 | 367,000 | 373,000 | 466,000 | 468,000 | 515,000 | 545,000 | 640,000 | 754,000 | 810,000 | 720,000 | 593,000 | 516,000 | 911,000 | 900,000 | 1,140,000 | 1,078,000 | 1,147,000 |
| Total current liabilities | US$ in thousands | 466,000 | 459,000 | 481,000 | 522,000 | 459,000 | 434,000 | 469,000 | 405,000 | 406,000 | 400,000 | 387,000 | 380,000 | 397,000 | 371,000 | 361,000 | 824,000 | 346,000 | 381,000 | 343,000 | 415,000 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,381,000K ÷ ($467,000K – $466,000K)
= 1,381.00
Wyndham Hotels & Resorts Inc's working capital turnover has shown fluctuation over the past few quarters. The ratio increased from 2.73 on March 31, 2020, to a peak of 43.66 on September 30, 2023, indicating a substantial improvement in the efficiency of the company's working capital management. This sudden spike might be attributed to various factors such as improved receivables collections, better inventory management, or efficient payables processing.
However, the working capital turnover ratio dropped significantly to 1,381.00 on December 31, 2024, which seems like an anomaly or error in the data provided, as such a high ratio is not realistic or meaningful in the context of working capital turnover analysis. It is important to investigate this outlier further to understand the reason behind the unusual figure.
Overall, Wyndham Hotels & Resorts Inc should aim to maintain a stable working capital turnover ratio over time, ensuring efficient utilization of its working capital to support its day-to-day operations effectively. Monitoring this ratio can provide insights into the company's liquidity management and operational efficiency.
Peer comparison
Dec 31, 2024