Hyatt Hotels Corporation (H)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,023,000 | 848,000 | 829,000 | 863,000 | 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 |
| Payables | US$ in thousands | 475,000 | 346,000 | 488,000 | 539,000 | 493,000 | 369,000 | 486,000 | 544,000 | 500,000 | 402,000 | 554,000 | 546,000 | 523,000 | 109,000 | 110,000 | 102,000 | 102,000 | 101,000 | 93,000 | 133,000 |
| Payables turnover | 2.15 | 2.45 | 1.70 | 1.60 | 1.71 | 2.30 | 1.76 | 1.47 | 1.53 | 1.60 | 0.99 | 0.94 | 0.84 | 3.97 | 3.95 | 5.32 | 4.88 | 4.78 | 5.22 | 2.89 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,023,000K ÷ $475,000K
= 2.15
The payables turnover ratio for Hyatt Hotels Corporation has fluctuated over the past few years. It was relatively stable between 2020 and early 2022, ranging from around 2.89 to 5.32. This indicates that, on average, the company was able to turn over its payables between approximately 2.89 to 5.32 times during those periods.
However, starting from December 31, 2022, there was a significant decline in the payables turnover ratio. The ratio dropped to 0.84 by the end of 2022 and remained low around 1.5 for the next few quarters. This decline could suggest that the company is taking longer to pay off its suppliers or that there are changes in its accounts payable management.
By September 30, 2024, the payables turnover ratio started to increase again, reaching 2.45. This could indicate either improvements in the company's payables management or changes in payment terms with suppliers.
Overall, fluctuations in the payables turnover ratio reflect changes in Hyatt Hotels Corporation's efficiency in managing its accounts payable and interacting with its suppliers. It is essential for the company to monitor this ratio closely to ensure optimal working capital management and healthy supplier relationships.
Peer comparison
Dec 31, 2024