Hilton Worldwide Holdings Inc (HLT)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	11,043,000	11,217,000	10,906,000	10,499,000	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
Total current assets	US$ in thousands	3,272,000	3,573,000	2,689,000	3,183,000	2,614,000	2,484,000	2,580,000	2,561,000	2,870,000	2,976,000	2,840,000	2,861,000	2,871,000	2,694,000	2,379,000	3,468,000	4,202,000	4,584,000	4,577,000	3,149,000
Total current liabilities	US$ in thousands	4,700,000	4,491,000	4,226,000	3,774,000	3,722,000	3,561,000	3,435,000	3,390,000	3,372,000	3,365,000	3,195,000	3,085,000	3,019,000	2,622,000	2,779,000	2,476,000	2,431,000	2,299,000	2,306,000	2,220,000
Working capital turnover		—	—	—	—	—	—	—	—	—	—	—	—	—	67.68	—	3.27	2.43	2.52	3.19	9.88

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $11,043,000K ÷ ($3,272,000K – $4,700,000K)
= —

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. A higher ratio indicates better efficiency in managing working capital.

Looking at the data provided for Hilton Worldwide Holdings Inc:

- The working capital turnover ratio was 9.88 as of March 31, 2020, showing that the company effectively turned over its working capital almost 10 times during that period.
- By June 30, 2020, the ratio decreased significantly to 3.19, indicating a reduced efficiency in utilizing working capital to generate revenue.
- The trend continued with further declines in the ratio, reaching 2.52 as of September 30, 2020, and 2.43 by December 31, 2020. These lower ratios suggest a decrease in the company's ability to generate revenue relative to its working capital.
- The ratio improved to 3.27 by March 31, 2021, indicating a slight recovery in utilizing working capital efficiently.
- The data is missing for the subsequent quarters up to September 30, 2021, but there is a significant spike to 67.68, which could be due to a change in seasonal operations or other factors. However, without additional data points, it is challenging to draw definitive conclusions.
- Subsequent data points, up to December 31, 2024, have not been provided, making it difficult to analyze the trend further.

In conclusion, the working capital turnover ratio for Hilton Worldwide Holdings Inc has fluctuated over the period provided, with both highs and lows. It is important to monitor this ratio continuously to assess the company's efficiency in managing its working capital and generating revenue.