Hyatt Hotels Corporation (H)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,024,000 | 841,000 | 767,000 | 440,000 | 498,000 |
| Payables | US$ in thousands | 475,000 | 493,000 | 500,000 | 523,000 | 102,000 |
| Payables turnover | 2.16 | 1.71 | 1.53 | 0.84 | 4.88 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,024,000K ÷ $475,000K
= 2.16
The payables turnover ratio for Hyatt Hotels Corporation has experienced fluctuations over the past five years. In 2020, the company had a payables turnover ratio of 4.88, indicating that it was able to pay off its accounts payable nearly 5 times during that year. However, this ratio decreased significantly to 0.84 in 2021, suggesting a slowdown in the company's ability to settle its payables promptly.
In the subsequent years, there was a gradual improvement in the payables turnover ratio. By the end of 2022, the ratio had increased to 1.53, signaling a better ability to manage payables compared to the previous year. This trend continued in 2023 and 2024, with payables turnover ratios of 1.71 and 2.16, respectively.
Overall, the fluctuations in the payables turnover ratio indicate that Hyatt Hotels Corporation has varied in its ability to efficiently manage and settle its accounts payable over the past five years. The company's recent improvement in this ratio suggests a positive trend towards more effective payables management.
Peer comparison
Dec 31, 2024