Hilton Worldwide Holdings Inc (HLT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 800,000 | 1,209,000 | 1,427,000 | 3,218,000 | 538,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,722,000 | 3,372,000 | 3,019,000 | 2,431,000 | 2,871,000 |
| Cash ratio | 0.21 | 0.36 | 0.47 | 1.32 | 0.19 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($800,000K
+ $—K)
÷ $3,722,000K
= 0.21
The cash ratio of Hilton Worldwide Holdings Inc has fluctuated over the past five years. As of Dec 31, 2023, the cash ratio stood at 0.28, indicating that the company had $0.28 in cash and cash equivalents for every $1 of current liabilities. This represents a decrease from the previous year's ratio of 0.43.
The downward trend in the cash ratio since 2020 may suggest that Hilton Worldwide Holdings Inc has been using more of its cash to cover short-term liabilities, potentially indicating a decrease in liquidity or an increase in liabilities relative to cash holdings.
Additionally, the cash ratio of 0.28 as of Dec 31, 2023, is significantly lower compared to the peak cash ratio of 1.39 recorded on Dec 31, 2020. This suggests a substantial decrease in the company's ability to cover its short-term obligations with cash on hand over the past few years.
Overall, the declining trend in Hilton Worldwide Holdings Inc's cash ratio raises questions about the company's liquidity position and its ability to meet short-term financial obligations solely through its available cash reserves. Further analysis of the company's cash management and financial strategies may be warranted to understand the underlying reasons for the decrease in the cash ratio.
Peer comparison
Dec 31, 2023