Hyatt Hotels Corporation (H)

Short-term

Turnover ratios

Based on the provided data for Hyatt Hotels Corporation's activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. Higher ratios indicate that inventory is selling quickly.
- Hyatt's inventory turnover has shown a decreasing trend over the five-year period, from 55.33 in 2020 to 128.00 in 2024.
- The significant increase in inventory turnover from 2020 to 2024 suggests that Hyatt has been more effective in selling off its inventory during this period.

2. Receivables Turnover:
- The receivables turnover ratio reflects how quickly a company collects payments from its customers.
- Hyatt's receivables turnover has fluctuated slightly but remained relatively stable over the five years, ranging from 5.20 to 7.41.
- The consistent level of receivables turnover implies that Hyatt has been successful in managing its accounts receivable efficiently.

3. Payables Turnover:
- The payables turnover ratio indicates how quickly a company pays its suppliers.
- Hyatt's payables turnover ratio has shown volatility, ranging from 0.84 to 2.16 over the five-year period.
- The increase in payables turnover from 2021 to 2024 suggests that Hyatt has been extending its payment periods to suppliers or negotiating better payment terms.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate sales.
- The data provided for 2020 and subsequent years show that Hyatt has not reported a working capital turnover ratio.
- The absence of working capital turnover data for the years 2021 to 2024 indicates that Hyatt might not have reported or calculated this specific ratio during these periods.

Overall, based on the activity ratios analysis, it can be inferred that Hyatt Hotels Corporation has generally shown efficiency in managing its inventory and accounts receivable, while also demonstrating some variability in its payment practices to suppliers. Additional data or context would be needed to provide a more comprehensive evaluation of the company's activity management performance.

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Average number of days

Hyatt Hotels Corporation's activity ratios provide insight into the efficiency of managing its inventory, collecting receivables, and paying liabilities.

1. Days of Inventory on Hand (DOH):
- The trend in DOH indicates the number of days it takes for Hyatt to sell its inventory. A decreasing trend is generally favorable as it suggests efficient inventory management. Hyatt's DOH decreased from 6.60 days in 2020 to 2.85 days in 2024, indicating the company is managing its inventory more efficiently, possibly through better demand forecasting or inventory control measures.

2. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes for Hyatt to collect payment after making a sale. A lower DSO is preferred as it indicates faster collection of receivables. Hyatt's DSO improved from 59.95 days in 2020 to 51.74 days in 2024, suggesting the company is becoming more efficient in collecting payments from customers.

3. Number of Days of Payables:
- This ratio reflects the average number of days Hyatt takes to pay its suppliers. A longer period may indicate favorable credit terms but could also signal potential cash flow issues. Hyatt's ability to pay its suppliers improved significantly from 74.76 days in 2020 to 169.31 days in 2024, indicating a more sustainable and efficient approach to managing payables over the years.

Overall, Hyatt Hotels Corporation has shown improvements in its activity ratios over the years, indicating enhanced efficiency in managing inventory, collecting receivables, and paying suppliers, which could positively impact its overall financial performance and liquidity position.

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Long-term

The Fixed Asset Turnover ratio for Hyatt Hotels Corporation has shown a steady increase over the years, from 0.62 in 2020 to 4.68 in 2024. This indicates that the company is generating significantly more revenue relative to its investment in fixed assets, reflecting improved efficiency in asset utilization.

Similarly, the Total Asset Turnover ratio has also been on an upward trend, rising from 0.21 in 2020 to 0.59 in 2024. This shows that the company is generating more revenue for every dollar of total assets, suggesting effective management in utilizing its overall asset base to generate sales.

Overall, the improving trend in both Fixed Asset Turnover and Total Asset Turnover ratios suggests that Hyatt Hotels Corporation has been successful in optimizing its asset utilization and generating more revenue per dollar of investment in fixed and total assets, respectively, over the years.