Travel + Leisure Co.
TNL Consumer Cyclical Travel Services
Travel + Leisure Co.’s revenue for fiscal 2025 (year ended December 2025) was $4.0 billion, up 4.06% from fiscal 2024. In the quarter to June 2026, revenue grew 4.42%, EPS grew 7.36%, free cash flow was flat and total debt rose 2.20%, each against the same quarter a year earlier. Dividend growth for five consecutive years, revenue growth for five; insiders bought in the last twelve months.
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Travel + Leisure Co. (TNL) Altman Z-score
Travel + Leisure Co.'s Altman Z-score for fiscal 2025 is 2.28, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.28 | 0.00 |
| FY2024 | 2.27 | 0.14 |
| FY2023 | 2.14 | 0.10 |
| FY2022 | 2.04 | (0.02) |
| FY2021 | 2.06 | 1.01 |
| FY2020 | 1.05 | (1.13) |
| FY2019 | 2.17 | 0.27 |
| FY2018 | 1.90 | 0.38 |
| FY2017 | 1.52 | 0.42 |
| FY2016 | 1.10 | (0.20) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.46 | — | 0.56 | |
| Retained earnings / total assets | 0.36 | — | 0.50 | |
| EBIT / total assets | 0.08 | — | 0.27 | |
| Market value of equity / total liabilities | 0.60 | — | 0.36 | |
| Sales / total assets | 0.59 | — | 0.59 | |
| Altman Z-score | Grey zone | 2.28 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 4.62 | ||
Z and Z″ put Travel + Leisure Co. in different zones: grey zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| TCOM Trip.com Group Limited Sponsored ADR compare | 3.1× |
| PRSU Pursuit Attractions and Hospitality, Inc. compare | 2.6× |
| TNL Travel + Leisure Co. | 2.3× |
| EXPE Expedia Group, Inc. compare | 1.7× |
| TRIP TripAdvisor, Inc. compare | 1.7× |
| CCL Carnival Corporation compare | 1.2× |
| LIND Lindblad Expeditions compare | 0.6× |
| MMYT MakeMyTrip Limited compare | 0.4× |
| NCLH Norwegian Cruise Line Holdings Ltd. compare | 0.4× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets