Hyatt Hotels Corporation (H)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		93.44	85.22	44.00	55.33	39.50
DOH	days	3.91	4.28	8.30	6.60	9.24

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 93.44
= 3.91

Over the past five years, Hyatt Hotels Corporation has shown a trend of decreasing days of inventory on hand (DOH), indicating an improvement in managing its inventory levels efficiently. In 2019, the company held inventory for an average of 1.11 days, which increased slightly to 1.64 days by the end of 2020. However, Hyatt Hotels Corporation successfully reduced its DOH to 1.54 days in 2021, further decreasing to 0.93 days by 2022, and reaching its lowest level of 0.79 days in 2023. This downward trend suggests that the company has become more effective in managing its inventory, potentially leading to cost savings and better liquidity. A lower DOH indicates that Hyatt Hotels Corporation is turning over its inventory quicker, which could improve its profitability and cash flow. Overall, the trend in DOH reflects positively on the company's inventory management efforts over the past five years.