Hilton Worldwide Holdings Inc (HLT)

Current ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total current assets US$ in thousands 2,614,000 2,870,000 2,871,000 4,202,000 2,093,000
Total current liabilities US$ in thousands 3,722,000 3,372,000 3,019,000 2,431,000 2,871,000
Current ratio 0.70 0.85 0.95 1.73 0.73

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,614,000K ÷ $3,722,000K
= 0.70

The current ratio of Hilton Worldwide Holdings Inc has exhibited fluctuations over the past five years. The current ratio measures the company's ability to meet its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position.

In 2020, Hilton had a relatively high current ratio of 1.73, indicating the company had more than enough current assets to cover its short-term obligations. This strong liquidity position may have been influenced by effective cash management or timely accounts receivable collections.

However, in 2021, the current ratio decreased to 0.95, suggesting that Hilton's ability to cover its short-term liabilities with current assets weakened. This decrease could be a result of increased short-term debt or a decline in current assets relative to liabilities.

Subsequently, the current ratio further declined in 2022 to 0.85, indicating a potential liquidity challenge for Hilton. A ratio below 1 suggests that the company may struggle to meet its short-term obligations with its current assets, raising concerns about liquidity risk.

By the end of 2023, the current ratio dropped to 0.70, indicating a continued decrease in liquidity. A ratio significantly below 1 may signal potential difficulties in managing short-term liabilities without additional financing or asset conversion.

Overall, Hilton's current ratio trend indicates fluctuations in its short-term liquidity position over the years, with a downward trajectory in recent periods. Investors and analysts may closely monitor this ratio to assess the company's ability to meet its short-term obligations and manage liquidity effectively.


Peer comparison

Dec 31, 2023


See also:

Hilton Worldwide Holdings Inc Current Ratio