Hyatt Hotels Corporation (H)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	841,000	850,000	857,000	799,000	766,000	642,000	551,000	512,000	440,000	433,000	434,000	543,000	498,000	483,000	485,000	384,000	461,000	485,000	569,000	628,000
Inventory	US$ in thousands	9,000	10,000	10,000	10,000	9,000	9,000	8,000	8,000	10,000	9,000	9,000	9,000	9,000	14,000	11,000	12,000	12,000	12,000	13,000	14,000
Inventory turnover		93.44	85.00	85.70	79.90	85.11	71.33	68.88	64.00	44.00	48.11	48.22	60.33	55.33	34.50	44.09	32.00	38.42	40.42	43.77	44.86

December 31, 2023 calculation

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

The inventory turnover for Hyatt Hotels Corporation has shown a consistent upward trend over the past eight quarters, indicating improved efficiency in managing its inventory. The ratio has steadily increased from 341.12 in Q1 2022 to 462.89 in Q4 2023. This suggests that the company is selling its inventory at a faster rate relative to the amount of inventory it holds, which is a positive indicator of effective inventory management.

The significant improvement in inventory turnover reflects Hyatt Hotels Corporation's ability to efficiently convert its inventory into sales. A higher inventory turnover ratio signifies that the company is effectively managing its inventory levels, reducing the risk of obsolete or outdated inventory and potentially lowering holding costs.

Overall, the consistent upward trend in inventory turnover for Hyatt Hotels Corporation indicates operational efficiency and effective management of its inventory, which can lead to improved financial performance and profitability in the long run.