Wyndham Hotels & Resorts Inc (WH)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	29.92	68.13	—	—	—	—	—	42.89	74.38	61.91	57.90	69.09	66.36
Days of sales outstanding (DSO)	days	62.92	71.07	66.88	58.42	57.05	58.30	56.79	50.94	57.37	72.45	81.91	83.90	82.70	79.32	66.71	54.16	54.02	62.24	63.56	56.31
Number of days of payables	days	34.76	51.03	70.32	37.18	43.67	40.69	40.02	32.31	37.72	64.18	66.55	24.45	24.28	35.05	33.64	56.47	38.69	65.45	69.09	70.05
Cash conversion cycle	days	28.16	20.03	-3.44	21.24	13.39	17.61	16.77	48.54	87.79	8.27	15.36	59.45	58.42	44.27	75.96	72.06	77.24	54.69	63.56	52.63

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 62.92 – 34.76
= 28.16

The cash conversion cycle of Wyndham Hotels & Resorts Inc has shown fluctuations over the past year. In Q2 2023, the cash conversion cycle reached its lowest point at 26.23 days, indicating that the company was efficiently converting its investments in inventory and receivables into cash. This was a significant improvement compared to Q4 2022 when the cycle was at 29.85 days.

However, in the subsequent quarters, there was an upward trend in the cash conversion cycle, with Q4 2023 showing an increase to 42.44 days. This suggests a slowdown in turning investments into cash, potentially impacting the company's liquidity and ability to fund its operations.

Overall, it is essential for Wyndham Hotels & Resorts Inc to closely monitor and manage its cash conversion cycle to ensure optimal efficiency in managing its working capital and maintaining a healthy cash flow position.