Hyatt Hotels Corporation (H)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,130,000 | 2,250,000 | 2,062,000 | 2,563,000 | 1,706,000 |
| Total current liabilities | US$ in thousands | 3,578,000 | 3,287,000 | 2,232,000 | 984,000 | 1,086,000 |
| Current ratio | 0.60 | 0.68 | 0.92 | 2.60 | 1.57 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,130,000K ÷ $3,578,000K
= 0.60
The current ratio of Hyatt Hotels Corporation has shown a decreasing trend over the past five years, from 1.60 in 2019 to 0.62 in 2023. This indicates that the company's ability to meet its short-term financial obligations with its current assets has weakened over the period. A current ratio below 1 suggests that the company may have difficulty in meeting its short-term liabilities with its current assets alone.
In 2020, the current ratio was notably high at 2.63, indicating a strong ability to cover short-term obligations with current assets. However, the ratio decreased sharply in the following years, possibly due to changes in the company's current asset and liability composition or financial performance.
A current ratio below 1 may raise concerns about the company's liquidity and ability to pay off its short-term obligations as they come due. It would be essential for stakeholders and investors to further investigate the reasons behind the declining current ratio to assess the company's financial health and liquidity position.
Peer comparison
Dec 31, 2023