Hyatt Hotels Corporation (H)
Payables 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 |
| Payables | US$ in thousands | 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 | 150,000 | 144,000 | 149,000 | 174,000 |
| Payables turnover | 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 | 3.07 | 3.37 | 3.82 | 3.61 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $841,000K ÷ $493,000K
= 1.71
The payables turnover ratio measures how efficiently a company is managing its trade payables by comparing the cost of goods sold to its average accounts payable during a certain period. A higher payables turnover ratio usually indicates that the company is paying its suppliers quickly, which can be a sign of good financial health and strong supplier relationships.
Analyzing the payables turnover ratio for Hyatt Hotels Corporation over the past eight quarters, we observe fluctuations in the ratio. In Q3 2023, the ratio was at its highest point of 10.97, indicating that Hyatt Hotels was managing its trade payables exceptionally well during that period. This may suggest that the company was efficiently paying its suppliers, possibly taking advantage of early payment discounts or negotiating favorable terms.
In Q2 and Q4 2023, the payables turnover ratio dipped slightly to 8.15 and 8.45, respectively, but remained relatively high compared to the previous quarters. These fluctuations could be indicative of changes in the company's purchasing patterns or terms with suppliers during those periods.
In contrast, Q1 2023 saw a decrease in the payables turnover ratio to 6.93, which may suggest that Hyatt Hotels took longer to pay its suppliers during that quarter compared to the previous ones. Similarly, in Q2 2022 and Q1 2022, the ratios were lower at 5.48 and 5.00, respectively, indicating that the company may have taken longer to settle its payables during those periods.
Overall, an upward trend or consistently high payables turnover ratio can signal efficient management of trade payables, while a declining or low ratio may indicate delays in payments to suppliers. It is essential for investors and stakeholders to consider the reasons behind these fluctuations and trends to gain insight into Hyatt Hotels Corporation's financial management and operational efficiency in handling its payables.
Peer comparison
Dec 31, 2023