Hilton Worldwide Holdings Inc (HLT)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		1.37	1.30	1.48	2.16	4.20
Number of days of payables	days	266.11	281.29	246.91	168.65	86.89

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.37
= 266.11

Based on the information provided, Hilton Worldwide Holdings Inc's number of days of payables has shown a significant increase over the past five years.

As of December 31, 2020, the company had an average payment period of approximately 86.89 days, indicating that it took approximately this amount of time for Hilton to settle its payables. However, by December 31, 2024, this number had grown to around 266.11 days, signifying a notable extension in the time taken by the company to pay its suppliers and creditors.

The trend of increasing number of days of payables from 2020 to 2024 may suggest several possible scenarios. It could indicate that Hilton is facing liquidity challenges, causing the company to delay payments to suppliers in order to maintain cash flow. Alternatively, it might signify a deliberate strategy by the company to prolong payment periods in order to better manage its working capital or to take advantage of prompt payment discounts.

Ultimately, the significant rise in Hilton's number of days of payables over the five-year period warrants further investigation into the company's financial health, cash flow management practices, and overall strategy regarding its payment terms.