Hyatt Hotels Corporation (H)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		7.05	7.41	7.19	5.20	6.09
DSO	days	51.74	49.27	50.78	70.23	59.95

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.05
= 51.74

Days Sales Outstanding (DSO) is a financial ratio used to evaluate how efficiently a company collects its accounts receivable. In the case of Hyatt Hotels Corporation, the trend in DSO over the past five years shows fluctuations.

As of December 31, 2020, the DSO stood at 59.95 days, indicating that on average, it took Hyatt nearly 60 days to collect its accounts receivable. However, by December 31, 2021, this figure had increased to 70.23 days, suggesting a slower collection period compared to the previous year.

In the following years, there was an improvement in DSO performance. By December 31, 2022, the DSO decreased to 50.78 days, signaling a more efficient collection process. This trend continued into December 31, 2023, with the DSO further declining to 49.27 days, indicating that the company was collecting its receivables more promptly.

By the end of December 31, 2024, the DSO slightly increased to 51.74 days. Although this was a minor uptick, it is essential for Hyatt to monitor this ratio closely to ensure that the collection of receivables remains efficient and in line with industry standards.

Overall, the fluctuations in DSO highlight the importance of monitoring accounts receivable management practices to maintain healthy cash flows and liquidity for Hyatt Hotels Corporation.