Hilton Worldwide Holdings Inc (HLT)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	10,235,000	10,008,000	9,717,000	9,323,000	8,773,000	8,175,000	7,564,000	6,642,000	5,788,000	4,873,000	4,027,000	3,245,000	4,307,000	5,754,000	7,246,000	9,181,000	9,452,000	9,355,000	9,206,000	9,117,000
Receivables	US$ in thousands	1,487,000	1,396,000	1,402,000	1,298,000	1,327,000	1,278,000	1,289,000	1,054,000	1,068,000	1,012,000	952,000	797,000	771,000	890,000	827,000	1,111,000	1,261,000	1,193,000	1,190,000	1,102,000
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $10,235,000K ÷ $1,487,000K
= 6.88

Hilton Worldwide Holdings Inc's receivables turnover has shown a consistent trend over the past eight quarters. The company's receivables turnover ratio ranged from 5.85 to 7.21 during this period, with an average of approximately 6.72.

The higher turnover ratios in Q3 2023, Q1 2023, and Q3 2022 indicate that Hilton is efficiently collecting its accounts receivable during those periods. Specifically, in Q3 2023 and Q3 2022, the company achieved its highest turnover ratios, showing an effective management of credit sales and collection processes.

Although the turnover ratio fluctuated slightly, the values remained relatively close to each other, suggesting that Hilton has been maintaining a stable collection efficiency over the past two years. This stable trend demonstrates the company's ability to efficiently convert its accounts receivable into cash, which is crucial for maintaining healthy cash flows and working capital management.

Overall, Hilton Worldwide Holdings Inc's receivables turnover indicates a consistent performance in managing its credit sales and collecting receivables, reflecting positively on its financial health and operational efficiency.