Hilton Worldwide Holdings Inc (HLT)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 561,000 | 606,000 | 604,000 | 605,000 | 593,000 | 546,000 | 542,000 | 537,000 | 544,000 | 558,000 | 579,000 | 580,000 | 593,000 | 754,000 | 766,000 | 826,000 | 941,000 | 836,000 | 864,000 | 859,000 |
| Inventory | US$ in thousands | — | 3,252,000 | — | — | 206,000 | 238,000 | 223,000 | 235,000 | 182,000 | 219,000 | 207,000 | 243,000 | 174,000 | 223,000 | 199,000 | 149,000 | 115,000 | 176,000 | 163,000 | 209,000 |
| Inventory turnover | — | 0.19 | — | — | 2.88 | 2.29 | 2.43 | 2.29 | 2.99 | 2.55 | 2.80 | 2.39 | 3.41 | 3.38 | 3.85 | 5.54 | 8.18 | 4.75 | 5.30 | 4.11 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $561,000K ÷ $—K
= —
The inventory turnover ratio for Hilton Worldwide Holdings Inc has exhibited fluctuations over the analyzed period. Starting at 4.11 on March 31, 2020, the ratio increased to 8.18 by December 31, 2020, indicating that the company was selling its inventory more frequently during that time. Subsequently, the ratio decreased and remained relatively stable around 2.39 to 3.85 from March 31, 2021, to June 30, 2022.
However, a significant drop in inventory turnover was observed from September 30, 2022, to September 30, 2023, where the ratio ranged from 2.29 to 3.38. This suggests a potential buildup of excess inventory or a slowdown in sales during this period.
The inventory turnover ratio further decreased to 0.19 on September 30, 2024, which may raise concerns about the company's inventory management efficiency. It is important for management to address the declining trend in inventory turnover to ensure optimal utilization of resources and maintain healthy liquidity levels. Further analysis and investigation into the factors impacting inventory turnover are necessary to implement corrective measures and improve overall operational performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024
See also:
Hilton Worldwide Holdings Inc Inventory Turnover (Quarterly Data)