Wyndham Hotels & Resorts Inc (WH)

Based on the data provided, we observe a significant trend in Wyndham Hotels & Resorts Inc's liquidity ratios over the years.

1. Current Ratio:
- The current ratio measures the company's ability to cover its short-term obligations with its short-term assets. The current ratio has decreased from 2.60 in December 31, 2020 to 1.00 in December 31, 2024. This downward trend indicates a decreasing ability to meet short-term liabilities with current assets.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. The quick ratio has fluctuated over the years, with a sharp drop from 1.05 in December 31, 2021 to -0.12 in December 31, 2023. This negative value in 2023 suggests potential concerns with the company's ability to meet its short-term obligations without relying on inventory.

3. Cash Ratio:
- The cash ratio specifically focuses on the company's ability to cover its short-term liabilities with cash and cash equivalents. Wyndham Hotels & Resorts Inc's cash ratio has decreased from 1.42 in December 31, 2020 to 0.22 in December 31, 2024. This downward trend indicates a decreasing reliance on cash to cover short-term obligations.

Overall, the liquidity ratios of Wyndham Hotels & Resorts Inc show a concerning trend of decreasing liquidity and ability to cover short-term obligations with current assets over the years. It is essential for the company to closely monitor and manage its liquidity position to ensure financial health and stability.

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Additional liquidity measure

Wyndham Hotels & Resorts Inc's cash conversion cycle has shown fluctuations over the years based on the provided data. In 2020, the company had a cash conversion cycle of 62.83 days, which increased significantly to 87.89 days by December 31, 2021. However, the company managed to improve its cash conversion cycle substantially in the following years, with a notable decrease to 13.08 days by December 31, 2022.

The trend continued to improve in 2023 with a cash conversion cycle of 28.00 days, indicating efficient management of cash, inventory, and receivables. By December 31, 2024, the cash conversion cycle slightly increased to 30.30 days, but overall, the company maintained a relatively low cash conversion cycle compared to previous years.

Overall, the data suggests that Wyndham Hotels & Resorts Inc has been successful in managing its working capital and converting its resources into cash efficiently, leading to improved cash flow and liquidity positions during the analyzed period.