Hilton Worldwide Holdings Inc (HLT)

Liquidity ratios

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
Current ratio 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 0.73 0.78 0.80 0.67
Quick ratio 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 0.63 0.66 0.66 0.53
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

Hilton Worldwide Holdings Inc's liquidity ratios have shown a declining trend over the past quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, decreased from 0.93 in Q1 2022 to 0.70 in Q4 2023. This indicates a weakening ability to meet short-term obligations.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also experienced a decrease from 0.90 in Q1 2022 to 0.67 in Q3 2023. The downward trend in both the current and quick ratios suggests potential challenges for Hilton Worldwide Holdings Inc in meeting its short-term liabilities.

Furthermore, the cash ratio, which reflects the company's ability to cover its current liabilities with only its most liquid assets (cash and cash equivalents), has also shown a declining trend. It dropped from 0.56 in Q1 2022 to 0.28 in Q4 2023, indicating a decrease in the company's cash reserves relative to its current liabilities.

Overall, the decreasing trend in Hilton Worldwide Holdings Inc's liquidity ratios raises concerns about its short-term financial health and ability to meet immediate obligations. It may be important for the company to closely monitor and manage its liquidity position to ensure financial stability in the future.

See also:

Hilton Worldwide Holdings Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days -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 11.13 145.13 154.38 78.06

The cash conversion cycle of Hilton Worldwide Holdings Inc has shown significant variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle was -93.16 days, indicating that Hilton was able to convert its inventory into cash and collect receivables more quickly than in previous quarters. This improvement in efficiency may suggest effective management of working capital.

However, in Q3 2023, the cash conversion cycle increased to 50.60 days, reflecting a slower conversion of inventory and receivables into cash compared to the previous quarter. This increase may raise concerns about the company's liquidity and operational efficiency during that period.

In Q2 and Q1 2023, Hilton's cash conversion cycle remained relatively stable at 52.40 days and 50.70 days, respectively. This consistency may indicate a steady performance in managing working capital and operating cash flows.

Comparing the Q4 2023 data with the same quarter in 2022, there has been a notable improvement in the cash conversion cycle, moving from -79.24 days to -93.16 days. This change suggests that Hilton has made advancements in its working capital management practices and operational efficiency over the year.

Overall, fluctuations in Hilton's cash conversion cycle highlight the importance of monitoring working capital closely to ensure efficient cash flow management and sustainable business operations.