Hilton Worldwide Holdings Inc (HLT)

Days of sales outstanding (DSO)

		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
Receivables turnover		6.98	7.02	6.91	7.16	6.88	7.17	6.93	7.18	6.61	6.40	5.87	6.30	5.42	4.82	4.23	4.07	5.59	6.47	8.76	8.26
DSO	days	52.32	51.97	52.81	51.00	53.03	50.91	52.66	50.82	55.21	57.06	62.20	57.92	67.35	75.80	86.29	89.65	65.34	56.46	41.66	44.17

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.98
= 52.32

Hilton Worldwide Holdings Inc's days of sales outstanding (DSO) has shown fluctuations over the years based on the data provided. In general, DSO indicates the average number of days it takes for the company to collect payment after making a sale.

From March 31, 2020, to June 30, 2021, the DSO decreased steadily from 44.17 days to 86.29 days, indicating that Hilton was collecting payments more efficiently over this period. However, from September 30, 2021, to December 31, 2024, the DSO varied between 50.91 days and 52.81 days, showing relatively stable collection periods.

The decrease in DSO from March 31, 2021, to September 30, 2022, suggests improved efficiency in collecting receivables. Subsequently, the increase in DSO seen from September 30, 2022, to March 31, 2024, followed by a slight decline, could indicate potential challenges in the collection process or changes in sales conditions.

Overall, a lower DSO indicates that Hilton is collecting payments more quickly, which could signify effective credit management and cash flow operations. However, it is essential to monitor DSO trends over time to ensure that the collection process remains efficient and aligned with the company's operational and financial objectives.