Hilton Worldwide Holdings Inc (HLT)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	800,000	698,000	806,000	901,000	1,209,000	1,282,000	1,175,000	1,432,000	1,427,000	1,288,000	1,044,000	2,402,000	3,218,000	3,405,000	3,503,000	1,734,000	538,000	719,000	635,000	382,000
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	2,871,000	2,900,000	2,780,000	2,794,000
Cash ratio		0.21	0.20	0.23	0.27	0.36	0.38	0.37	0.46	0.47	0.49	0.38	0.97	1.32	1.48	1.52	0.78	0.19	0.25	0.23	0.14

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 shown a decreasing trend over the past eight quarters. It decreased from 0.56 in Q1 2022 to 0.28 in Q4 2023. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to pay off current obligations.

The decreasing trend in Hilton's cash ratio may signal a potential liquidity concern, as the company may have less cash available relative to its current liabilities. Management should closely monitor the cash position and explore strategies to maintain or improve liquidity levels to meet short-term obligations effectively. Additionally, investors and stakeholders may pay attention to this trend to assess the company's financial health and risk management practices.