Hilton Worldwide Holdings Inc (HLT)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 561,000 | 593,000 | 544,000 | 593,000 | 941,000 |
| Inventory | US$ in thousands | — | 206,000 | 182,000 | 174,000 | 115,000 |
| Inventory turnover | — | 2.88 | 2.99 | 3.41 | 8.18 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $561,000K ÷ $—K
= —
Hilton Worldwide Holdings Inc's inventory turnover has been fluctuating over the past few years. In 2020, the company's inventory turnover was 8.18, indicating that it turned over its inventory approximately 8.18 times during that year. However, in the following years, the inventory turnover decreased significantly to 3.41 in 2021, 2.99 in 2022, and further to 2.88 in 2023.
The decreasing trend in inventory turnover suggests that Hilton Worldwide Holdings Inc may be facing challenges in managing its inventory efficiently or experiencing slower sales relative to its inventory levels. A lower inventory turnover ratio could indicate excess inventory levels, slow-moving inventory, or potential inefficiencies in the company's supply chain or sales strategy.
Unfortunately, the absence of data for December 31, 2024, prevents us from analyzing the most recent year. Overall, Hilton Worldwide Holdings Inc's declining inventory turnover warrants further investigation into the company's inventory management practices to identify potential areas for improvement and optimizations to enhance operational efficiency and profitability.
Peer comparison
Dec 31, 2024