Hyatt Hotels Corporation (H)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,011,000 | 881,000 | 991,000 | 960,000 | 1,207,000 |
| Short-term investments | US$ in thousands | 372,000 | 15,000 | 158,000 | 227,000 | 675,000 |
| Total current liabilities | US$ in thousands | 3,274,000 | 3,578,000 | 3,287,000 | 2,232,000 | 984,000 |
| Cash ratio | 0.42 | 0.25 | 0.35 | 0.53 | 1.91 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,011,000K
+ $372,000K)
÷ $3,274,000K
= 0.42
The cash ratio of Hyatt Hotels Corporation has exhibited a downward trend over the years, decreasing from 1.91 on December 31, 2020, to 0.42 on December 31, 2024. This indicates a decrease in the company's ability to cover its short-term liabilities solely with cash and cash equivalents. While a higher cash ratio is generally favorable as it signifies a stronger liquidity position, the declining trend observed in Hyatt's cash ratio may warrant further investigation into the company's cash management and liquidity strategies to ensure its ability to meet short-term obligations.
Peer comparison
Dec 31, 2024