Hyatt Hotels Corporation (H)

Short-term

Turnover ratios

Based on the provided data for Hyatt Hotels Corporation, let's analyze the activity ratios:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory. Hyatt's inventory turnover has shown a generally increasing trend over the years, indicating that the company has been able to sell off its inventory more frequently. A higher turnover ratio could suggest effective inventory management and less risk of obsolete inventory.

2. Receivables Turnover: The receivables turnover ratio reflects how well a company collects on its credit sales. Hyatt's receivables turnover has fluctuated over the years but has generally been stable. A higher turnover ratio implies that the company is efficient in collecting payments from its customers.

3. Payables Turnover: The payables turnover ratio indicates how quickly a company pays its suppliers. Hyatt's payables turnover has varied, with some fluctuations. A lower turnover ratio may suggest that the company takes longer to pay its suppliers, which could be beneficial for managing working capital.

4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company uses its working capital to generate sales. Hyatt's working capital turnover has shown significant fluctuations, with some periods having high turnover and others showing no data. A higher turnover ratio indicates efficient utilization of working capital to generate revenue.

Overall, these activity ratios provide insights into Hyatt Hotels Corporation's efficiency in managing inventory, collecting receivables, paying payables, and utilizing working capital to generate revenue. Analyzing these ratios over time can help assess the company's operational efficiency and performance.

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Average number of days

Hyatt Hotels Corporation's activity ratios indicate the efficiency of its operations in managing inventory, collecting receivables, and paying its payables:

1. Days of Inventory on Hand (DOH):
- Hyatt Hotels Corporation's inventory turnover has been decreasing steadily over the years, from 11.41 days on March 31, 2020, to 2.85 days on December 31, 2024. This suggests that the company is managing its inventory more efficiently, taking fewer days to sell its inventory.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding ratio shows the average number of days it takes for Hyatt Hotels Corporation to collect its accounts receivable. The trend shows fluctuation with a peak at 92.82 days on March 31, 2021, and decreased to 51.99 days on December 31, 2024. This suggests improvement in the company's collection efficiency.

3. Number of Days of Payables:
- Hyatt Hotels Corporation's days of payables has been volatile over the years but generally trending downwards, from 126.42 days on March 31, 2020, to 169.48 days on December 31, 2024. A high number of days of payables may indicate a longer period taken by the company to pay its suppliers, potentially leveraging its cash flow.

Overall, the decreasing trend in inventory days and stable to decreasing trends in receivables and payables days indicate that Hyatt Hotels Corporation has been improving its operational efficiency in managing inventory, collecting payments from customers, and paying suppliers.

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Long-term

Hyatt Hotels Corporation's Fixed Asset Turnover ratio has shown a positive trend over the years, increasing steadily from 1.55 as of March 31, 2020, to 4.66 as of December 31, 2024. This indicates that the company is becoming more efficient in generating revenue from its fixed assets, such as property, plant, and equipment.

In contrast, the Total Asset Turnover ratio has fluctuated over the same period, ranging from 0.15 to 0.67. Despite the fluctuations, there is an overall increasing trend in the ratio, suggesting that Hyatt Hotels is utilizing its total assets more effectively to generate sales.

Overall, the improvement in both Fixed Asset Turnover and Total Asset Turnover ratios indicates that Hyatt Hotels Corporation has been successful in optimizing the utilization of its assets to drive revenue growth and maximize operational efficiency.