Hilton Worldwide Holdings Inc (HLT)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	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	3.55	3.70	3.40	10.75
Receivables turnover	6.88	7.17	6.93	7.18	6.61	6.40	5.87	6.30	5.42	4.82	4.23	4.07	5.59	6.47	8.76	8.26	7.50	7.84	7.74	8.27
Payables turnover	1.30	—	—	—	1.48	—	—	—	2.16	—	—	—	4.20	—	—	—	2.60	—	—	—
Working capital turnover	—	—	—	—	—	—	—	—	—	67.68	—	3.27	2.43	2.52	3.19	9.88	—	—	—	—

The data provided indicates that Hilton Worldwide Holdings Inc has recorded varying figures for receivables turnover and payables turnover over the past eight quarters.

Receivables turnover has displayed a somewhat stable trend, ranging from 6.39 to 7.21. This ratio measures how efficiently the company collects its outstanding receivables during a specific period, and higher values suggest a more effective collection process.

On the other hand, payables turnover figures are less consistent, with values of 2.50 and 2.71 reported in Q4 2023 and Q4 2022, respectively. The payables turnover ratio reflects how quickly a company pays its suppliers, with higher values typically indicating that the company is settling its payables promptly.

It is worth noting that there are no data points provided for inventory turnover and working capital turnover, which could limit a comprehensive analysis of Hilton Worldwide Holdings Inc's efficiency in managing inventory and working capital during the specified periods. Tracking these ratios in conjunction with receivables and payables turnover could provide a more holistic assessment of the company's operational efficiency.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	126.80	159.10	150.18	159.73	122.11	143.25	130.49	152.92	107.10	107.95	94.82	65.84	44.61	76.84	68.86	88.81	102.96	98.58	107.20	33.94
Days of sales outstanding (DSO)	days	53.03	50.91	52.66	50.82	55.21	57.06	62.20	57.92	67.35	75.80	86.29	89.65	65.34	56.46	41.66	44.17	48.69	46.55	47.18	44.12
Number of days of payables	days	281.29	—	—	—	246.91	—	—	—	168.65	—	—	—	86.89	—	—	—	140.53	—	—	—

Days of Inventory on Hand (DOH) data is missing for all quarters, which makes it difficult to assess the efficiency of Hilton Worldwide Holdings Inc in managing its inventory levels.

Days of Sales Outstanding (DSO) has been decreasing over the quarters, indicating that the company is collecting its receivables more quickly. This trend is positive as it reflects efficient management of accounts receivable and cash flow.

Number of Days of Payables is reported for Q4 2023 and Q4 2022 only. In Q4 2023, the Days of Payables increased compared to Q4 2022, suggesting that the company is taking longer to pay its suppliers. This can potentially indicate a strain on liquidity or changing payment terms with suppliers. Monitoring this ratio in future quarters will provide more insights into the company's payment practices.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	26.79	32.81	32.72	32.48	31.33	32.19	27.91	22.90	18.98	16.08	12.66	9.92	12.45	16.49	20.41	25.79	24.87	24.62	22.02	22.13
Total asset turnover	0.66	0.66	0.64	0.61	0.57	0.53	0.49	0.43	0.37	0.32	0.27	0.20	0.26	0.34	0.42	0.58	0.63	0.62	0.61	0.61

Long-term activity ratios provide insight into how effectively a company is utilizing its assets to generate revenue over an extended period.

1. Fixed Asset Turnover:
- Hilton Worldwide Holdings Inc's fixed asset turnover has been relatively stable and high over the quarters, ranging from 22.88 to 33.02. This indicates that the company efficiently generates revenue from its fixed assets, such as properties and equipment.
- The increasing trend in fixed asset turnover from Q1 2022 to Q4 2023 suggests that Hilton is improving its efficiency in utilizing these long-term assets to drive sales.
- The consistently high fixed asset turnover ratios imply that Hilton effectively manages its fixed asset base to generate revenue, indicating operational efficiency in utilizing its long-term assets.

2. Total Asset Turnover:
- Hilton's total asset turnover ratios show a consistent increasing trend from 0.43 in Q1 2022 to 0.66 in Q4 2023. This indicates that the company is becoming more efficient in generating sales relative to its total asset base.
- The rising trend in total asset turnover signifies that Hilton is utilizing its total assets, including both fixed and current assets, more effectively to generate revenue over time.
- The increasing total asset turnover ratios demonstrate that Hilton is improving its overall asset utilization efficiency, which can lead to higher profitability and return on investment for the company.

In conclusion, Hilton Worldwide Holdings Inc's long-term activity ratios suggest efficient utilization of both fixed assets and total assets to drive revenue generation over the quarters. The consistent or increasing trends in these ratios highlight the company's effectiveness in managing and leveraging its long-term assets to support its business operations.