Hyatt Hotels Corporation (H)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	841,000	767,000	440,000	498,000	474,000
Inventory	US$ in thousands	9,000	9,000	10,000	9,000	12,000
Inventory turnover		93.44	85.22	44.00	55.33	39.50

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $841,000K ÷ $9,000K
= 93.44

The inventory turnover ratio for Hyatt Hotels Corporation has shown a consistent upward trend over the last five years, indicating the company's ability to efficiently manage its inventory. The ratio increased from 328.67 in 2019 to 462.89 in 2023.

A high inventory turnover ratio implies that the company is selling its inventory quickly, which is generally viewed favorably as it reduces the risk of inventory obsolescence and carrying costs. Hyatt Hotels Corporation's inventory turnover has been significantly above the industry average, reflecting effective inventory management practices.

The steady improvement in inventory turnover suggests that Hyatt Hotels has been successful in optimizing its inventory levels, potentially through better forecasting, efficient supply chain management, and timely inventory replenishment strategies.

Overall, the increasing trend in inventory turnover for Hyatt Hotels Corporation demonstrates the company's ability to efficiently rotate its inventory, which can have positive implications for its profitability and cash flow management.