Hyatt Hotels Corporation (H)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 881,000 | 991,000 | 960,000 | 1,207,000 | 893,000 |
| Short-term investments | US$ in thousands | 15,000 | 158,000 | 227,000 | 675,000 | 68,000 |
| Total current liabilities | US$ in thousands | 3,578,000 | 3,287,000 | 2,232,000 | 984,000 | 1,086,000 |
| Cash ratio | 0.25 | 0.35 | 0.53 | 1.91 | 0.88 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($881,000K
+ $15,000K)
÷ $3,578,000K
= 0.25
The cash ratio of Hyatt Hotels Corporation has been fluctuating over the last five years. The ratio has decreased from 1.03 in 2019 to 0.32 in 2023. This indicates that the company's cash and cash equivalents relative to its current liabilities have decreased significantly. A low cash ratio may suggest that the company may have difficulty meeting its short-term obligations if they all came due at once. It is essential for the company to closely monitor its liquidity position and manage its cash flow efficiently to ensure it can cover its immediate financial obligations.
Peer comparison
Dec 31, 2023