Hyatt Hotels Corporation (H)

Liquidity ratios

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
Current ratio 0.83 0.79 0.82 0.59 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
Quick ratio 0.76 0.71 0.75 0.50 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
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

Hyatt Hotels Corporation's liquidity ratios exhibit fluctuations over the reported periods.

1. Current Ratio:
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown volatile trends. There was a gradual increase from March 2020 to September 2021, peaking at 3.70. However, the ratio sharply declined in the following quarters, hitting a low of 0.60 by December 2023. This indicates a potential strain in meeting short-term obligations.

2. Quick Ratio:
Similarly, the quick ratio, a measure of immediate liquidity excluding inventory, followed a similar pattern to the current ratio. It peaked at 3.59 in September 2021 before dropping to 0.50 by March 2024. The decreasing trend signals a potential decline in the company's ability to meet its short-term financial obligations without relying on inventory.

3. Cash Ratio:
The cash ratio, which reflects the company's ability to cover its current liabilities with cash and cash equivalents, also experienced fluctuations. The ratio peaked at 3.17 in September 2021 but decreased to 0.42 by December 2024. This declining trend suggests a reduction in the company's ability to quickly settle its debts solely with available cash resources.

Overall, the liquidity ratios of Hyatt Hotels Corporation indicate a period of mixed effectiveness in managing short-term obligations, with notable declines in liquidity levels towards the end of the reporting period. It would be essential for the company to closely monitor and improve its liquidity position to ensure financial stability and meet its obligations as they become due.

Additional liquidity measure

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 conversion cycle days -114.63 -101.11 -167.90 -177.31 -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

The cash conversion cycle for Hyatt Hotels Corporation has shown varying trends over the years. From March 31, 2020, to December 31, 2021, the company experienced negative cash conversion cycles, indicating efficient management of cash flow.

However, from March 31, 2021, to September 30, 2024, the cash conversion cycle turned positive, reaching its peak at 30.31 days on March 31, 2021, and fluctuating until September 30, 2024, when it reached -101.11 days, showing a significant improvement in efficiency.

Overall, the negative cash conversion cycle for Hyatt Hotels Corporation in recent periods suggests the company is effectively managing its working capital and converting its inventory and accounts receivable into cash quickly, which is a positive sign of operational efficiency and financial health.