Hyatt Hotels Corporation (H)
Payables 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 |
| Payables | US$ in thousands | 493,000 | 500,000 | 523,000 | 102,000 | 150,000 |
| Payables turnover | 1.71 | 1.53 | 0.84 | 4.88 | 3.16 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $841,000K ÷ $493,000K
= 1.71
The payables turnover ratio for Hyatt Hotels Corporation has shown fluctuations over the past five years. In 2019 and 2020, the company had considerably high payables turnover ratios of 26.29 and 19.63, respectively, indicating that Hyatt was managing its accounts payables more frequently during those periods.
However, in the subsequent years, 2021 to 2023, the payables turnover ratios decreased significantly. Specifically, the ratio dropped from 19.63 in 2020 to 4.52 in 2021 and further to 7.10 in 2022, suggesting a prolonged payment period to suppliers or a reduction in the frequency of managing accounts payables during these years.
The latest payables turnover ratio of 8.45 in 2023 indicates an improvement from the previous year but remains lower than the ratios observed in 2019 and 2020. This may suggest that Hyatt Hotels Corporation has optimized its payables management processes, resulting in a more efficient utilization of its supplier credits compared to the previous years.
Overall, the fluctuating trend in the payables turnover ratio for Hyatt Hotels Corporation highlights the importance of monitoring and managing accounts payables effectively to maintain a balance between timely payments and optimizing cash flow.
Peer comparison
Dec 31, 2023