Hilton Worldwide Holdings Inc (HLT)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,235,000 | 8,773,000 | 5,788,000 | 4,307,000 | 9,452,000 |
| Receivables | US$ in thousands | 1,487,000 | 1,327,000 | 1,068,000 | 771,000 | 1,261,000 |
| Receivables turnover | 6.88 | 6.61 | 5.42 | 5.59 | 7.50 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $10,235,000K ÷ $1,487,000K
= 6.88
The receivables turnover ratio measures how efficiently a company is able to collect payment from its customers. It is calculated by dividing net credit sales by average accounts receivable. A higher receivables turnover ratio indicates that the company is able to collect payments more quickly.
Based on the data provided for Hilton Worldwide Holdings Inc, we observe the following trends in the receivables turnover ratio over the past five years:
- In 2023, the receivables turnover ratio was 6.88, an increase from the previous year's ratio of 6.61. This suggests that Hilton was able to collect payments more efficiently in 2023 compared to 2022.
- Although the ratio decreased from 2021 to 2022, it was still higher in 2022 compared to 2021. This indicates that Hilton's collection of receivables improved in 2022 despite a slight dip in the ratio.
- In 2020, the ratio was 5.59, showing a decrease from the previous year's ratio of 7.50. This suggests that Hilton faced challenges in collecting payments in 2020 compared to 2019.
- The highest receivables turnover ratio of 7.50 was recorded in 2019, indicating that Hilton was highly efficient in collecting payments from customers that year.
- Overall, Hilton's receivables turnover ratio has fluctuated over the past five years, with some improvements and declines. It is important for the company to monitor this ratio to ensure efficient management of accounts receivable and timely collection of payments.
Peer comparison
Dec 31, 2023