Hilton Worldwide Holdings Inc (HLT)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,301,000 | 800,000 | 1,209,000 | 1,427,000 | 3,218,000 |
| Short-term investments | US$ in thousands | -12,251,000 | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,700,000 | 3,722,000 | 3,372,000 | 3,019,000 | 2,431,000 |
| Cash ratio | -2.33 | 0.21 | 0.36 | 0.47 | 1.32 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,301,000K
+ $-12,251,000K)
÷ $4,700,000K
= -2.33
The cash ratio of Hilton Worldwide Holdings Inc has exhibited fluctuations over the past five years. Starting at 1.32 in December 2020, the ratio declined significantly to 0.47 by December 2021 and continued its downward trend to 0.36 by December 2022. This decrease suggests that the company may have had challenges maintaining sufficient cash to cover its current liabilities. The ratio further dropped to 0.21 by December 2023, indicating a potential liquidity strain. However, the ratio sharply decreased to -2.33 by December 2024, which is an unusual and concerning figure. A negative cash ratio implies that the company's cash on hand is not sufficient to cover its current liabilities, potentially signaling financial distress. Overall, the declining trend in Hilton's cash ratio raises flags about its liquidity position and ability to meet short-term obligations.
Peer comparison
Dec 31, 2024