Hyatt Hotels Corporation (H)

Days of sales outstanding (DSO)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Receivables turnover 7.02 8.22 8.49 7.79 7.41 8.51 8.12 7.73 7.19 7.80 7.29 6.31 5.20 6.98 5.13 3.93 6.09 8.81 12.93 14.00
DSO days 51.99 44.38 42.99 46.85 49.27 42.88 44.96 47.20 50.78 46.77 50.09 57.86 70.23 52.32 71.10 92.82 59.95 41.41 28.22 26.07

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.02
= 51.99

Based on the data provided for Hyatt Hotels Corporation, the days of sales outstanding (DSO) have fluctuated over the periods from March 31, 2020, to December 31, 2024. DSO is a measure of how long it takes for a company to collect payment after a sale has been made.

Initially, the DSO figures were relatively low, ranging from around 26 to 28 days in the first two quarters of 2020. This suggests that Hyatt was efficient in collecting payments from customers during this period.

However, there was a significant increase in DSO to 41.41 days by September 30, 2020, indicating a possible delay in collecting receivables. The trend continued to worsen, with DSO reaching its peak of 92.82 days by March 31, 2021. This sharp increase could imply potential issues with accounts receivable management or changes in customer payment behavior.

From March 31, 2021, onwards, there was a gradual improvement in DSO, with the metric decreasing to 42.88 days by September 30, 2023. This indicates that Hyatt managed to streamline its collections process and reduce the time taken to collect payments.

While there were fluctuations in DSO figures over the subsequent quarters, the metric generally remained below the peak levels observed in early 2021. As of December 31, 2024, DSO stood at 51.99 days, reflecting a moderate increase compared to the preceding quarters but still lower than previous highs.

Overall, the analysis of Hyatt Hotels Corporation's DSO reveals fluctuations in the efficiency of receivables management over the periods under review, with efforts made to improve collections processes evident in the later quarters. Monitoring DSO trends can help assess the company's liquidity, working capital management, and effectiveness in collecting outstanding payments.