Hyatt Hotels Corporation (H)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 881,000 | 991,000 | 960,000 | 1,207,000 | 893,000 |
| Short-term investments | US$ in thousands | 15,000 | 158,000 | 227,000 | 675,000 | 68,000 |
| Receivables | US$ in thousands | 883,000 | 834,000 | 633,000 | 316,000 | 421,000 |
| Total current liabilities | US$ in thousands | 3,578,000 | 3,287,000 | 2,232,000 | 984,000 | 1,086,000 |
| Quick ratio | 0.50 | 0.60 | 0.82 | 2.23 | 1.27 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($881,000K
+ $15,000K
+ $883,000K)
÷ $3,578,000K
= 0.50
The quick ratio of Hyatt Hotels Corporation has exhibited a declining trend over the past five years. As of December 31, 2023, the quick ratio stands at 0.57, indicating that the company may have difficulty meeting its short-term obligations with its most liquid assets.
Comparing this to previous years, the quick ratio was higher in December 2022 at 0.67 and in December 2021 at 0.89, suggesting the company had stronger liquidity positions in those years. However, the sharp decrease in the quick ratio from 2.58 in December 2020 to 1.42 in December 2019 indicates a substantial change in the company's liquidity position over the years.
A quick ratio below 1.0 generally implies that a company may struggle to cover its short-term liabilities with its readily available assets, posing potential liquidity risks. It is essential for Hyatt Hotels Corporation to closely monitor and potentially improve its liquidity position to ensure financial stability and meet its obligations as they come due.
Peer comparison
Dec 31, 2023