Wyndham Hotels & Resorts Inc (WH)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 2,054,000 | 1,988,000 | 2,033,000 | 1,951,000 |
| Total current assets | US$ in thousands | 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 | 499,000 | 586,000 | 596,000 | 778,000 |
| Total current liabilities | US$ in thousands | 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 | 462,000 | 514,000 | 481,000 | 663,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,398,000K ÷ ($373,000K – $459,000K)
= —
Wyndham Hotels & Resorts Inc's working capital turnover has shown fluctuations over the past eight quarters. In Q4 2023, specific data is not available; however, in Q3 2023, the working capital turnover was 44.09, indicating a significant increase from the previous quarter. This suggests that the company was able to efficiently utilize its working capital to generate revenue during Q3 2023.
Looking back further, the working capital turnover has generally been improving since Q1 2022, where it was at 3.80. This improvement indicates that Wyndham Hotels & Resorts Inc has been able to enhance its efficiency in converting working capital into revenue over time.
The working capital turnover ratio is an important indicator of a company's operational efficiency and liquidity. A higher ratio suggests that the company is effectively utilizing its working capital to generate revenue. In contrast, a lower ratio may indicate inefficiencies in managing working capital or a slowdown in revenue generation relative to the amount of working capital invested.
Overall, based on the available data, Wyndham Hotels & Resorts Inc has shown an improvement in its working capital turnover over the past quarters, reflecting positive trends in operational efficiency and liquidity management. It would be important to continue monitoring this metric to assess the company's ongoing performance in utilizing its working capital effectively.
Peer comparison
Dec 31, 2023