Wyndham Hotels & Resorts Inc (WH)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 373,000 | 545,000 | 720,000 | 900,000 | 499,000 |
| Total current liabilities | US$ in thousands | 459,000 | 406,000 | 397,000 | 346,000 | 462,000 |
| Current ratio | 0.81 | 1.34 | 1.81 | 2.60 | 1.08 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $373,000K ÷ $459,000K
= 0.81
The current ratio of Wyndham Hotels & Resorts Inc has shown a declining trend over the past five years. As of December 31, 2023, the current ratio stands at 0.81, indicating that the company may have potential liquidity concerns in meeting its short-term obligations. The ratio has significantly decreased from 2.60 in 2020 to 0.81 in 2023.
A current ratio below 1 suggests that the company may have difficulty in paying off its current liabilities with its current assets alone. It may potentially face challenges in managing its working capital and short-term financial obligations. The decreasing trend in the current ratio over the past years may raise concerns about the company's ability to maintain a healthy liquidity position.
Investors and creditors may closely monitor the current ratio as it serves as an important indicator of a company's short-term financial health and ability to cover its immediate financial obligations. Management may need to closely evaluate and address the factors contributing to the declining current ratio to ensure the company's financial stability and operational efficiency in the future.
Peer comparison
Dec 31, 2023