Hilton Worldwide Holdings Inc (HLT)

Current ratio

		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
Total current assets	US$ in thousands	3,272,000	3,573,000	2,689,000	3,183,000	2,614,000	2,484,000	2,580,000	2,561,000	2,870,000	2,976,000	2,840,000	2,861,000	2,871,000	2,694,000	2,379,000	3,468,000	4,202,000	4,584,000	4,577,000	3,149,000
Total current liabilities	US$ in thousands	4,700,000	4,491,000	4,226,000	3,774,000	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
Current ratio		0.70	0.80	0.64	0.84	0.70	0.70	0.75	0.76	0.85	0.88	0.89	0.93	0.95	1.03	0.86	1.40	1.73	1.99	1.98	1.42

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,272,000K ÷ $4,700,000K
= 0.70

The current ratio of Hilton Worldwide Holdings Inc has shown fluctuations over the specified timeframe. The ratio, which measures the company's ability to cover its short-term liabilities with its current assets, started at 1.42 as of March 31, 2020, indicating a healthy liquidity position.

Subsequently, the ratio improved to 1.99 by September 30, 2020, and remained relatively stable above 1.5 until March 31, 2021. However, there was a notable decline in the current ratio to 0.86 by June 30, 2021, suggesting potential liquidity challenges.

Despite a slight recovery to 1.03 by September 30, 2021, the ratio decreased to 0.85 by December 31, 2021, and continued to decline in the following periods, reaching 0.70 by March 31, 2023, and remaining at that level until December 31, 2024.

The decreasing trend in the current ratio may raise concerns about the company's ability to meet its short-term obligations using its current assets. It is crucial for Hilton Worldwide Holdings Inc to monitor and manage its liquidity position effectively to ensure financial stability and meet upcoming financial commitments.