Hyatt Hotels Corporation (H)
Quick ratio
| 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 | US$ in thousands | 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 | 893,000 | 660,000 | 515,000 | 547,000 |
| Short-term investments | US$ in thousands | 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 | 68,000 | 63,000 | 62,000 | 54,000 |
| Receivables | US$ in thousands | 883,000 | 762,000 | 787,000 | 828,000 | 834,000 | 702,000 | 699,000 | 655,000 | 633,000 | 373,000 | 360,000 | 340,000 | 316,000 | 322,000 | 313,000 | 365,000 | 421,000 | 434,000 | 497,000 | 472,000 |
| Total current liabilities | US$ in thousands | 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 | 1,086,000 | 1,044,000 | 1,114,000 | 1,105,000 |
| 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 |
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, also known as the acid-test ratio, measures a company's ability to cover its short-term obligations with its most liquid assets. Hyatt Hotels Corporation's quick ratio has fluctuated over the past eight quarters, ranging from a low of 0.57 to a high of 1.17.
In Q4 2023, the quick ratio was 0.57, indicating that the company had $0.57 in liquid assets to cover each dollar of its current liabilities. This suggests a potential liquidity concern, as a quick ratio below 1 may indicate difficulty in meeting short-term obligations without selling inventory or obtaining additional financing.
In comparison, the quick ratio improved in Q3 2023 to 0.72, suggesting a slight increase in liquidity. However, the ratio dipped in Q2 2023 to 0.74 before decreasing further to 0.63 in Q1 2023. These fluctuations may signal variability in the company's ability to convert its current assets into cash quickly.
Looking back to Q4 2022, the quick ratio was 0.67, indicating a similar level of liquidity compared to Q1 2023. Notably, the ratio significantly dropped in Q2 2022 to 0.76, only to spike to 1.17 in Q3 2022, signaling a period of strong liquidity. However, this level was not sustained, as the quick ratio then decreased to 0.86 in Q1 2022.
Overall, Hyatt Hotels Corporation's quick ratio has displayed inconsistency in its ability to cover short-term obligations with liquid assets. Investors and analysts may want to monitor this ratio closely to assess the company's liquidity position and its ability to withstand unforeseen financial challenges in the future.
Peer comparison
Dec 31, 2023