Wyndham Hotels & Resorts Inc (WH)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 103,000 | 66,000 | 161,000 | 171,000 | 493,000 |
| Short-term investments | US$ in thousands | — | -360,000 | — | — | — |
| Total current liabilities | US$ in thousands | 466,000 | 459,000 | 406,000 | 397,000 | 346,000 |
| Cash ratio | 0.22 | -0.64 | 0.40 | 0.43 | 1.42 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($103,000K
+ $—K)
÷ $466,000K
= 0.22
The cash ratio of Wyndham Hotels & Resorts Inc has shown a declining trend from 1.42 in December 2020 to 0.22 in December 2024. A cash ratio of 1.42 in December 2020 indicates that the company had $1.42 in cash for every $1 of current liabilities, suggesting strong liquidity. However, the decrease to 0.22 in December 2024 may raise concerns about the company's ability to cover its short-term obligations with cash alone. The negative cash ratio of -0.64 in December 2023 is a red flag, indicating that the company had more current liabilities than cash on hand. Overall, the decreasing trend in the cash ratio of Wyndham Hotels & Resorts Inc implies a potential liquidity challenge that may require further investigation and management attention.
Peer comparison
Dec 31, 2024