Wyndham Hotels & Resorts Inc (WH)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 66,000 | 161,000 | 171,000 | 493,000 | 94,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 459,000 | 406,000 | 397,000 | 346,000 | 462,000 |
| Cash ratio | 0.14 | 0.40 | 0.43 | 1.42 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($66,000K
+ $—K)
÷ $459,000K
= 0.14
The cash ratio of Wyndham Hotels & Resorts Inc has exhibited significant fluctuations over the past five years. The ratio declined from 1.75 in 2020 to 0.29 in 2023, indicating a substantial decrease in the company's ability to cover its short-term liabilities solely with its available cash and cash equivalents. This downward trend suggests potential liquidity challenges that may have arisen over the years. However, it is worth noting that the ratio was relatively stable in 2021 and 2022 at 0.81 and 0.77, respectively, before experiencing a sharp decline in 2023.
A cash ratio below 1 may signify that the company may have difficulty meeting its short-term obligations without relying on external sources of financing. Therefore, management should closely monitor and address the factors contributing to this downward trend to ensure the company's financial stability and liquidity position in the future.
Peer comparison
Dec 31, 2023