Hilton Worldwide Holdings Inc (HLT)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	593,000	544,000	593,000	941,000	787,000
Payables	US$ in thousands	457,000	368,000	274,000	224,000	303,000
Payables turnover		1.30	1.48	2.16	4.20	2.60

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $593,000K ÷ $457,000K
= 1.30

The payables turnover ratio for Hilton Worldwide Holdings Inc has exhibited some fluctuation over the past five years. The ratio stood at 4.14 at the end of 2019, indicating that the company was able to pay off its accounts payable more than four times during that year. However, there was a significant decline in the ratio to 2.77 by the end of 2020, suggesting a decrease in the efficiency of paying off its payables.

In 2021, the payables turnover ratio further decreased to 2.48, reflecting a continued trend of lower efficiency in managing accounts payable. This trend seemed to improve slightly in 2022 as the ratio increased to 2.71, but it remained below the levels seen in 2019.

By the end of 2023, the payables turnover ratio for Hilton Worldwide Holdings Inc was recorded at 2.50, indicating a further decline in the efficiency of paying off its accounts payable compared to the prior year. This downward trend over the past few years suggests a potential liquidity challenge or changes in the company's payment policies that have impacted its ability to settle its obligations promptly.

Overall, it is essential for stakeholders to monitor this trend closely to assess the company's liquidity position, operational efficiency, and relationships with suppliers. They should also consider the industry norms and peer comparisons to gain a better understanding of Hilton Worldwide Holdings Inc's performance in managing its payables.