Hyatt Hotels Corporation (H)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,011,000 | 1,095,000 | 1,253,000 | 740,000 | 881,000 | 701,000 | 882,000 | 948,000 | 991,000 | 1,223,000 | 1,428,000 | 1,023,000 | 960,000 | 2,418,000 | 1,144,000 | 1,078,000 | 1,207,000 | 1,778,000 | 1,438,000 | 1,194,000 |
| Short-term investments | US$ in thousands | 372,000 | 39,000 | 704,000 | 54,000 | 15,000 | 26,000 | 24,000 | 103,000 | 158,000 | 151,000 | 527,000 | 282,000 | 227,000 | 357,000 | 593,000 | 550,000 | 675,000 | 310,000 | 65,000 | 68,000 |
| Total current liabilities | US$ in thousands | 3,274,000 | 2,936,000 | 3,744,000 | 3,382,000 | 3,578,000 | 2,408,000 | 2,621,000 | 3,347,000 | 3,287,000 | 2,957,000 | 2,411,000 | 2,520,000 | 2,232,000 | 876,000 | 1,017,000 | 950,000 | 984,000 | 970,000 | 701,000 | 1,183,000 |
| Cash ratio | 0.42 | 0.39 | 0.52 | 0.23 | 0.25 | 0.30 | 0.35 | 0.31 | 0.35 | 0.46 | 0.81 | 0.52 | 0.53 | 3.17 | 1.71 | 1.71 | 1.91 | 2.15 | 2.14 | 1.07 |
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 for Hyatt Hotels Corporation has fluctuated over the analyzed period. It started at 1.07 on March 31, 2020, indicating that the company had $1.07 in cash and cash equivalents for every $1 of current liabilities, reflecting a strong liquidity position.
The ratio improved to 2.15 by September 30, 2020, suggesting an increase in available cash relative to current liabilities. However, the ratio declined to 1.71 by March 31, 2021, and remained relatively stable until June 30, 2021.
By September 30, 2021, the cash ratio significantly improved to 3.17, indicating a substantial increase in cash reserves compared to current obligations, potentially strengthening the company's ability to meet short-term financial obligations.
However, the ratio sharply dropped to 0.53 by December 31, 2021, below the healthy threshold of 1, which may indicate a potential liquidity strain for the company. This downward trend continued into 2022, with the ratio declining to 0.35 by December 31, 2022.
Throughout 2023 and 2024, the cash ratio remained relatively low, hovering between 0.23 and 0.52, indicating a limited ability to cover short-term liabilities with cash and cash equivalents.
Overall, the declining trend in the cash ratio from 2021 to 2024 raises concerns about Hyatt Hotels Corporation's liquidity position and ability to meet its short-term obligations with available cash reserves. This suggests that the company may need to evaluate its cash management strategies to improve liquidity and strengthen its financial position.
Peer comparison
Dec 31, 2024