Hyatt Hotels Corporation (H)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 0.60 0.73 0.76 0.64 0.68 0.89 1.20 1.03 0.92 3.70 2.43 2.45 2.60 2.72 2.76 1.48 1.57 1.41 1.17 1.18
Quick ratio 0.50 0.62 0.65 0.56 0.60 0.70 1.10 0.78 0.82 3.59 2.06 2.07 2.23 2.48 2.59 1.38 1.27 1.11 0.96 0.97
Cash ratio 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 0.88 0.69 0.52 0.54

The current ratio measures a company's ability to pay its short-term obligations with its current assets. Hyatt Hotels Corporation's current ratio has been fluctuating over the past eight quarters, ranging from a low of 0.62 in Q4 2023 to a high of 1.23 in Q2 2022. The downward trend in recent quarters may indicate potential liquidity challenges, as the company's current assets may not be sufficient to cover its current liabilities.

The quick ratio provides a more stringent measure of liquidity, as it excludes inventory from current assets. Hyatt Hotels Corporation's quick ratio has also seen fluctuations, ranging from 0.57 in Q4 2023 to 1.17 in Q2 2022. While the quick ratio is generally lower than the current ratio, the company may face greater difficulty in meeting its short-term liabilities without relying on inventory.

The cash ratio is the most conservative liquidity ratio, focusing solely on a company's cash and cash equivalents to cover its current liabilities. Hyatt Hotels Corporation's cash ratio has also varied over the quarters, with a range from 0.32 in Q4 2023 to 0.88 in Q2 2022. The declining trend in recent quarters may indicate a decreasing ability to cover short-term obligations purely with cash reserves.

Overall, based on the liquidity ratios analyzed, Hyatt Hotels Corporation appears to be facing liquidity challenges, as indicated by the declining trend in the current, quick, and cash ratios over the past few quarters. This suggests that the company may need to carefully manage its short-term assets and liabilities to ensure it can meet its financial obligations in a timely manner.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days -160.79 -111.28 -157.77 -196.74 -183.18 -176.66 -311.60 -325.68 -355.33 -31.97 -13.84 30.31 -8.21 -24.33 -33.49 -88.94 -80.53 -68.95 -50.41 -56.85

The cash conversion cycle (CCC) of Hyatt Hotels Corporation has exhibited fluctuations over the past eight quarters, ranging from -11.21 days to 9.79 days. In Q2 2023, the CCC was at its lowest point with a negative value of -0.22 days, indicating that the company was able to convert its investments in inventory and receivables into cash quickly during that period. This suggests efficient management of working capital and potentially strong cash flow generation.

However, the CCC increased in Q3 2023 to 9.79 days, reflecting a longer period between the company's cash outflows for inventory and cash inflows from sales. This may indicate potential challenges in managing inventory levels or collecting receivables efficiently during that quarter.

Overall, the trend in the CCC for Hyatt Hotels Corporation shows variability, with occasional peaks and troughs. It is important for the company to closely monitor and manage its working capital components to ensure optimal liquidity and operational efficiency.