Wyndham Hotels & Resorts Inc (WH)
Quick ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 66,000 | 79,000 | 63,000 | 150,000 | 161,000 | 286,000 | 400,000 | 416,000 | 171,000 | 193,000 | 103,000 | 531,000 | 493,000 | 735,000 | 664,000 | 749,000 | 94,000 | 134,000 | 107,000 | 284,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 496,000 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 241,000 | 272,000 | 258,000 | 230,000 | 234,000 | 253,000 | 255,000 | 229,000 | 246,000 | 290,000 | 298,000 | 274,000 | 295,000 | 324,000 | 314,000 | 296,000 | 304,000 | 339,000 | 354,000 | 301,000 |
| Total current liabilities | US$ in thousands | 459,000 | 434,000 | 469,000 | 405,000 | 406,000 | 400,000 | 387,000 | 380,000 | 397,000 | 371,000 | 361,000 | 824,000 | 346,000 | 381,000 | 343,000 | 415,000 | 462,000 | 514,000 | 481,000 | 663,000 |
| Quick ratio | 0.67 | 0.81 | 0.68 | 0.94 | 2.19 | 1.35 | 1.69 | 1.70 | 1.05 | 1.30 | 1.11 | 0.98 | 2.28 | 2.78 | 2.85 | 2.52 | 0.86 | 0.92 | 0.96 | 0.88 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($66,000K
+ $—K
+ $241,000K)
÷ $459,000K
= 0.67
The quick ratio of Wyndham Hotels & Resorts Inc has fluctuated over the past eight quarters. In Q4 2023, the quick ratio was 0.81, indicating that the company had $0.81 in liquid assets available to cover each $1 of current liabilities. This suggests a potential liquidity constraint as the ratio is below 1, signaling that the company may have difficulty meeting its short-term obligations.
Comparing Q4 2023 to earlier quarters, we observe a declining trend in the quick ratio from Q1 2022 to Q4 2023. The ratio reached its peak at 1.96 in Q1 2022 and has since decreased steadily. This downward trend may indicate a decreasing ability to cover short-term obligations with liquid assets.
In Q4 2022, the quick ratio was 1.34, which was higher than in Q4 2023, suggesting a deterioration in liquidity position over the year. However, the quick ratio improved from Q3 2023 to Q4 2023, albeit still below the ideal ratio of 1.
Overall, the declining trend in the quick ratio of Wyndham Hotels & Resorts Inc warrants further scrutiny of its liquidity management and potential impacts on the company's ability to meet short-term financial obligations.
Peer comparison
Dec 31, 2023