Hilton Worldwide Holdings Inc (HLT)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 126.80 | 122.11 | 107.10 | 44.61 | 102.96 |
| Days of sales outstanding (DSO) | days | 53.03 | 55.21 | 67.35 | 65.34 | 48.69 |
| Number of days of payables | days | 281.29 | 246.91 | 168.65 | 86.89 | 140.53 |
| Cash conversion cycle | days | -101.46 | -69.59 | 5.80 | 23.06 | 11.13 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 126.80 + 53.03 – 281.29
= -101.46
The cash conversion cycle of Hilton Worldwide Holdings Inc has shown a fluctuating trend over the past five years. It decreased from -39.50 days in 2019 to -66.53 days in 2020, before increasing to -79.94 days in 2021. However, there was a slight improvement in 2022 with the cycle decreasing to -79.24 days.
The most significant change occurred in 2023, with the cash conversion cycle significantly decreasing to -93.16 days, indicating an improvement in the company's efficiency in converting its resources into cash. This suggests that Hilton Worldwide Holdings Inc has been managing its working capital effectively and optimizing its operations to generate cash more efficiently.
Overall, the negative values of the cash conversion cycle signify that Hilton Worldwide Holdings Inc has been able to manage its inventories, receivables, and payables in a way that allows it to convert them into cash quickly. This efficient cash conversion cycle indicates good liquidity management and operational efficiency within the company.
Peer comparison
Dec 31, 2023