Hilton Worldwide Holdings Inc (HLT)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	1,958.71	—	—	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
Days of sales outstanding (DSO)	days	52.32	51.97	52.81	51.00	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
Number of days of payables	days	266.11	—	—	—	281.29	—	—	—	246.91	—	—	—	168.65	—	—	—	86.89	—	—	—
Cash conversion cycle	days	-213.78	2,010.68	52.81	51.00	-101.46	210.02	202.84	210.55	-69.59	200.31	192.69	210.84	5.80	183.75	181.11	155.49	23.06	133.30	110.52	132.98

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 52.32 – 266.11
= -213.78

The cash conversion cycle of Hilton Worldwide Holdings Inc has shown significant fluctuations over the analyzed periods. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In the period from March 31, 2020, to June 30, 2020, there was a decrease in the cash conversion cycle from 132.98 days to 110.52 days, indicating an improvement in the efficiency of Hilton's working capital management. However, this trend was reversed in the subsequent periods, with the cycle increasing to 183.75 days by September 30, 2021.

A notable improvement was seen by December 31, 2021, with the cycle dropping significantly to 5.80 days, suggesting a more efficient cash conversion process. This was further reflected in the negative values recorded on December 31, 2022, and December 31, 2023, which may indicate an unusually fast cash conversion or potentially errors in the data recording.

The cycle increased substantially to 2,010.68 days on September 30, 2024, which is an outlier and could be attributed to specific circumstances or data anomalies. Subsequently, the cycle decreased substantially to -213.78 days by December 31, 2024, indicating a possible issue with the data or irregularities in the cash flow calculations.

Overall, the significant fluctuations in Hilton Worldwide Holdings Inc's cash conversion cycle highlight the importance of closely monitoring working capital management practices to ensure efficiency and optimize cash flow operations.