Hilton Worldwide Holdings Inc (HLT)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.88	6.61	5.42	5.59	7.50
DSO	days	53.03	55.21	67.35	65.34	48.69

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.88
= 53.03

To analyze Hilton Worldwide Holdings Inc's Days of Sales Outstanding (DSO) over the past five years, we observe a fluctuating trend in the collection period for accounts receivable.

In 2019, the DSO stood at 48.69 days, indicating that, on average, it took Hilton approximately 48.69 days to collect its accounts receivable. The following year, in 2020, the DSO increased to 65.34 days, suggesting a slower collection period, potentially reflecting challenges in collecting receivables efficiently.

The trend continued in 2021, with a further increase in DSO to 67.35 days, indicating a prolonged collection cycle. However, in 2022, there was a slight improvement in DSO, dropping to 55.21 days, although remaining higher than 2019 levels.

Finally, in 2023, the DSO decreased to 53.03 days, showing a slight improvement in the collection period compared to the previous year. This may suggest enhanced efficiency in collecting accounts receivable.

Overall, the fluctuating trend in DSO for Hilton Worldwide Holdings Inc indicates varying efficiency in managing its accounts receivable collection process over the past five years, with potential implications for cash flow management and working capital efficiency.