Hilton Worldwide Holdings Inc (HLT)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.61 | 0.71 | 0.55 | 0.75 | 0.61 | 0.59 | 0.64 | 0.65 | 0.75 | 0.76 | 0.77 | 0.81 | 0.83 | 0.88 | 0.72 | 1.29 | 1.64 | 1.87 | 1.88 | 1.28 |
| Cash ratio | 0.28 | 0.35 | 0.17 | 0.36 | 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 |
Hilton Worldwide Holdings Inc's liquidity ratios have demonstrated fluctuating trends over the past few years.
The current ratio, a measure of the company's ability to cover its short-term liabilities with its short-term assets, has shown a general decrease from 1.42 in March 2020 to 0.70 in December 2024. This indicates a potential weakening in the company's short-term liquidity position over the years.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also exhibited a downward trend from 1.28 in March 2020 to 0.61 in December 2024. This suggests a decrease in the company's ability to meet its short-term obligations without relying on inventory.
Furthermore, the cash ratio, showing the proportion of a company's current assets held in cash and cash equivalents, has experienced a decline from 0.78 in March 2020 to 0.28 in December 2024. This indicates a reduced capacity of Hilton Worldwide Holdings Inc to cover its short-term liabilities with readily available cash.
In summary, Hilton Worldwide Holdings Inc's liquidity ratios have shown a consistent decrease over the years, suggesting potential challenges in meeting its short-term financial obligations with its current assets. This may indicate a need for the company to improve its liquidity management strategies to ensure financial stability in the future.
See also:
Hilton Worldwide Holdings Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -213.78 | 2,010.68 | 52.81 | 51.00 | -101.46 | 210.02 | 202.84 | 210.55 | -69.59 | 200.31 | 192.69 | 210.84 | 5.80 | 183.75 | 181.11 | 155.49 | 23.06 | 133.30 | 110.52 | 132.98 |
The cash conversion cycle of Hilton Worldwide Holdings Inc has shown varying trends over the years as reflected in the data provided. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Looking at the data, the cash conversion cycle started at 132.98 days as of March 31, 2020, which indicates that the company took around 133 days to convert its investments into cash. Over the next several quarters, the cycle fluctuated, reaching its lowest point at 5.80 days as of December 31, 2021, which suggests an improvement in the efficiency of Hilton's operations in converting investments into cash.
However, the cycle increased significantly in the following quarters, reaching peaks of 210.84 days as of March 31, 2022, and 2023. These higher numbers may indicate potential delays in converting investments to cash or managing working capital effectively during those periods.
Notably, there are instances where the cash conversion cycle shows negative days, such as -69.59 days as of December 31, 2022, and -101.46 days as of December 31, 2023. Negative days in the cash conversion cycle can suggest that the company is able to collect cash from sales before paying its suppliers, potentially indicating an efficient cash management strategy.
The data also shows extreme values, like 2,010.68 days as of September 30, 2024, and -213.78 days as of December 31, 2024, which may be outliers or errors in data reporting.
In conclusion, the cash conversion cycle of Hilton Worldwide Holdings Inc has experienced fluctuations and extreme values over the period covered by the data. Analyzing the trend in the cash conversion cycle can provide insights into the company's efficiency in managing working capital and converting investments into cash, which are crucial aspects of its financial health and operational performance.