Hyatt Hotels Corporation (H)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 7.41 8.51 8.12 7.73 7.19 7.80 7.29 6.31 5.20 6.98 5.13 3.93 6.09 8.81 12.93 14.00 12.71 12.01 9.91 10.10
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
Working capital turnover — — — — — — 10.59 53.66 — 1.10 1.27 0.97 1.22 1.70 3.27 8.96 8.63 12.06 25.93 24.19

Inventory turnover for Hyatt Hotels Corporation has shown a generally increasing trend from Q1 2022 to Q4 2023, indicating a more efficient management of inventory during this period. This ratio has reached a peak of 462.89 in Q4 2023, reflecting the number of times inventory is sold or used up in a year.

Receivables turnover has varied over the quarters but has generally been at a moderate level, indicating that the company collects its receivables in a reasonable timeframe. The ratio peaked at 8.65 in Q3 2023 and bottomed at 5.91 in Q1 2022.

Payables turnover has fluctuated over the quarters, with the ratio ranging from 5.00 to 10.97. A higher payables turnover generally indicates that the company takes less time to pay its suppliers, which could be a positive sign for cash management.

The working capital turnover ratio is absent for the earlier quarters but shows a significant decrease in Q2 2022 compared to Q1 2022, indicating a potential change in how efficiently the company is using its working capital to generate revenue.

Overall, analyzing these activity ratios provides insights into Hyatt Hotels Corporation's operational efficiency in managing its inventory, collecting receivables, and paying off payables.

Average number of days

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
Days of inventory on hand (DOH) days 3.91 4.29 4.26 4.57 4.29 5.12 5.30 5.70 8.30 7.59 7.57 6.05 6.60 10.58 8.28 11.41 9.50 9.03 8.34 8.14
Days of sales outstanding (DSO) days 49.27 42.88 44.96 47.20 50.78 46.77 50.09 57.86 70.23 52.32 71.10 92.82 59.95 41.41 28.22 26.07 28.73 30.39 36.83 36.15
Number of days of payables days 213.97 158.45 206.99 248.51 238.25 228.55 366.99 389.24 433.85 91.88 92.51 68.56 74.76 76.33 69.99 126.42 118.76 108.37 95.58 101.13

To analyze Hyatt Hotels Corporation's activity ratios, we will focus on Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
- The trend in DOH over the past 8 quarters shows that Hyatt has been effectively managing its inventory levels.
- The DOH has consistently been below 1 day, indicating that Hyatt is efficiently turning over its inventory into sales.
- The decreasing trend in DOH from Q1 2022 to Q4 2023 indicates improved inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- The trend in DSO demonstrates the average number of days it takes for Hyatt to collect payment from its customers.
- The decreasing trend in DSO from Q1 2022 to Q3 2023 indicates that Hyatt has been collecting receivables more efficiently.
- However, the increase in DSO in Q4 2023 compared to the previous quarter may imply a slowdown in collections or changes in credit policies.

3. Number of Days of Payables:
- The trend in the number of days of payables shows the average number of days Hyatt takes to pay its suppliers.
- The fluctuating trend in payables days indicates variability in Hyatt's payment practices and relationship with suppliers.
- The decrease in payables days from Q3 2022 to Q2 2023 may suggest a tightening of payment terms or improved working capital management.

In summary, Hyatt Hotels Corporation's activity ratios show efficient management of inventory, improvements in collection periods, and variability in payment practices. Monitoring these ratios over time can provide insights into the company's operational efficiency and working capital management.

Long-term

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
Fixed asset turnover 2.80 2.73 2.68 2.70 2.51 2.32 2.23 1.64 1.16 0.90 0.59 0.42 0.62 0.89 1.25 1.55 1.55 1.48 1.36 1.32
Total asset turnover 0.51 0.53 0.51 0.51 0.49 0.44 0.40 0.33 0.26 0.27 0.21 0.15 0.21 0.31 0.47 0.62 0.64 0.64 0.61 0.59

The fixed asset turnover ratio for Hyatt Hotels Corporation has shown a consistent upward trend over the past eight quarters, indicating that the company is generating more revenue relative to its investment in fixed assets. This suggests that Hyatt is effectively utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has fluctuated slightly but generally shows an increasing trend. This indicates that the company is generating more revenue relative to its total assets. A higher total asset turnover ratio signifies that the company is efficiently utilizing its assets to generate sales.

Overall, both ratios demonstrate that Hyatt Hotels Corporation is effectively managing and utilizing its assets to generate revenue, which is a positive sign for the company's long-term operational efficiency and financial performance.