Hilton Worldwide Holdings Inc (HLT)
Payables 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 |
| Payables | US$ in thousands | 409,000 | 457,000 | 368,000 | 274,000 | 224,000 |
| Payables turnover | 1.37 | 1.30 | 1.48 | 2.16 | 4.20 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $561,000K ÷ $409,000K
= 1.37
The payables turnover ratio for Hilton Worldwide Holdings Inc has shown a declining trend over the years based on the provided data. As of December 31, 2020, the payables turnover ratio was 4.20, indicating that the company was able to turn over its accounts payable 4.20 times during the year. However, by December 31, 2024, the payables turnover ratio had decreased to 1.37, suggesting a slowdown in the company's ability to manage its accounts payable efficiently.
A decreasing payables turnover ratio may imply that Hilton Worldwide Holdings Inc is taking longer to pay its suppliers, which could potentially strain relationships with vendors or signal liquidity issues within the company. It is important for investors and stakeholders to monitor changes in the payables turnover ratio as it can provide insights into the company's financial health and operational efficiency in managing its payables.
Peer comparison
Dec 31, 2024