Wyndham Hotels & Resorts Inc (WH)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 68.36 | — |
| Days of sales outstanding (DSO) | days | 70.25 | 62.97 | 57.02 | 57.37 | 82.83 |
| Number of days of payables | days | 39.96 | 34.97 | 43.94 | 37.84 | 20.00 |
| Cash conversion cycle | days | 30.30 | 28.00 | 13.08 | 87.89 | 62.83 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 70.25 – 39.96
= 30.30
The cash conversion cycle of Wyndham Hotels & Resorts Inc has experienced fluctuations over the years. As of December 31, 2020, the company had a cash conversion cycle of 62.83 days, indicating that it takes approximately two months to convert its investments in inventory and other resources back into cash. This cycle increased to 87.89 days by December 31, 2021, suggesting a slowdown in the company's cash conversion efficiency.
However, there was a significant improvement in the cash conversion cycle by December 31, 2022, where it decreased to 13.08 days. This sharp decline indicates that Wyndham Hotels & Resorts Inc was able to streamline its operations and convert its assets into cash more quickly. By December 31, 2023, the cash conversion cycle increased to 28.00 days, showing a slight slowdown compared to the previous year.
As of December 31, 2024, the cash conversion cycle stood at 30.30 days, indicating a moderate increase from the previous year but still lower than the levels seen in 2021 and 2023. Overall, the fluctuations in the cash conversion cycle of Wyndham Hotels & Resorts Inc reflect changes in the company's efficiency in managing its working capital and converting investments into cash over the years.
Peer comparison
Dec 31, 2024