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Travel+Leisure Co (NYSE:TNL) Financial Strength

: 3 (As of Sep. 2022)
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Travel+Leisure Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Travel+Leisure Co displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Travel+Leisure Co's Interest Coverage for the quarter that ended in Sep. 2022 was 3.94. Travel+Leisure Co's debt to revenue ratio for the quarter that ended in Sep. 2022 was 1.41. As of today, Travel+Leisure Co's Altman Z-Score is 2.11.


Travel+Leisure Co (NYSE:TNL) Financial Strength Competitive Comparison

For the Travel Services subindustry, Travel+Leisure Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Travel+Leisure Co (NYSE:TNL) Financial Strength Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Travel+Leisure Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Travel+Leisure Co's Financial Strength falls into.



Travel+Leisure Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Travel+Leisure Co's Interest Expense for the months ended in Sep. 2022 was $-48 Mil. Its Operating Income for the months ended in Sep. 2022 was $189 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2022 was $5,273 Mil.

Travel+Leisure Co's Interest Coverage for the quarter that ended in Sep. 2022 is

Interest Coverage=-1*Operating Income (Q: Sep. 2022 )/Interest Expense (Q: Sep. 2022 )
=-1*189/-48
=3.94

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Travel+Leisure Co interest coverage is 3.58, which is low.

2. Debt to revenue ratio. The lower, the better.

Travel+Leisure Co's Debt to Revenue Ratio for the quarter that ended in Sep. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 5273) / 3748
=1.41

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Travel+Leisure Co has a Z-score of 2.11, indicating it is in Grey Zones. This implies that Travel+Leisure Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.11 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Travel+Leisure Co  (NYSE:TNL) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Travel+Leisure Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Travel+Leisure Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Travel+Leisure Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Travel+Leisure Co (NYSE:TNL) Business Description

Travel+Leisure Co logo
Traded in Other Exchanges
Address
6277 Sea Harbor Drive, Orlando, FL, USA, 32821
Travel+Leisure Co is a membership and leisure travel company with a portfolio of several travel brands included in its resort, travel club, and lifestyle portfolio. It provides hospitality services and travel products. The company operates in the segments of Vacation Ownership, which is the key revenue-driving segment, develops, markets and sells vacation ownership interests (VOIs) to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts and Travel and Membership which operates a variety of travel businesses, including three vacation exchange brands, a home exchange network, travel technology platforms, travel memberships, and direct-to-consumer rentals.
Executives
Chavy Olivier officer: See remarks C/O TRAVEL + LEISURE CO. 6277 SEA HARBOR DRIVE ORLANDO FL 32821
Esfahani Sy officer: Chief Technology Officer C/O TRAVEL + LEISURE CO. 6277 SEA HARBOR DRIVE ORLANDO FL 32821
Martinez Lucinda director C/O TRAVEL + LEISURE CO. 6277 SEA HARBOR DRIVE ORLANDO FL 32821
Herrera George director HERRERA-CRISTINA GROUP, LTD. 4222 FORTUNA CENTER PLAZA, #621 MONTCLAIR VA 22025
Brady Louise F. director 22 SYLVAN WAY PARSIPPANY NY 07054
Wargotz Michael H director AXCESS WORLDWIDE 515 MADISON AVE., 15TH FLOOR NEW YORK NY 10022
Buckman James E director YORK CAPITAL MANAGEMENT 767 5TH AVENUE - 17TH FLOOR NEW YORK NY 10153
Clark Mary Lynn officer: See Remarks C/O WYNDHAM WORLDWIDE CORPORATION 22 SYLVAN WAY PARSIPPANY NJ 07054
Gurnik Gordon officer: President, RCI Exchanges C/O WYNDHAM WORLDWIDE CORPORATION 22 SYLVAN WAY PARSIPPANY NJ 07054
Brodsky Noah officer: Chief Brand Officer C/O WYNDHAM WORLDWIDE CORPORATION 22 SYLVAN WAY PARSIPPANY NJ 07054
Robinson Barry Alan officer: See Remarks C/O WYNDHAM WORLDWIDE CORPORATION 22 SYLVAN WAY PARSIPPANY NJ 07054
Hug Michael officer: Chief Financial Officer C/O WYNDHAM WORLDWIDE CORPORATION 22 SYLVAN WAY PARSIPPANY NJ 07054
Myers Jeffrey officer: See Remarks C/O WYNDHAM WORLDWIDE CORPORATION 22 SYLVAN WAY PARSIPPANY NJ 07054
Richards Geoffrey officer: See Remarks C/O WYNDHAM WORLDWIDE CORPORATION 22 SYLVAN WAY PARSIPPANY NJ 07054
Savina James J officer: See Remarks ONE PPG PLACE PITTSBURGH PA 15222

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