Hilton Worldwide Holdings Inc (HLT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 800,000 | 1,209,000 | 1,427,000 | 3,218,000 | 538,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,487,000 | 1,327,000 | 1,068,000 | 771,000 | 1,261,000 |
| Total current liabilities | US$ in thousands | 3,722,000 | 3,372,000 | 3,019,000 | 2,431,000 | 2,871,000 |
| Quick ratio | 0.61 | 0.75 | 0.83 | 1.64 | 0.63 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($800,000K
+ $—K
+ $1,487,000K)
÷ $3,722,000K
= 0.61
Based on the data provided, the quick ratio of Hilton Worldwide Holdings Inc has exhibited fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities using only its quick assets.
In 2023, the quick ratio decreased to 0.68, which suggests a decline in the company's ability to cover its short-term obligations with its liquid assets compared to the previous year. This may raise concerns about the company's liquidity position and its ability to handle immediate financial obligations.
In 2022, the quick ratio was 0.83, showing a slight improvement from the previous year. However, the ratio remained below 1, indicating that Hilton Worldwide Holdings Inc may still face challenges in meeting its short-term liabilities with its quick assets.
In 2021, the quick ratio was 0.92, which was higher than the previous year but still below the ideal threshold of 1. This indicates that the company's liquidity position improved slightly, but there may still be room for enhancement in managing short-term obligations efficiently.
In 2020, the quick ratio significantly improved to 1.71, signaling a substantial increase in the company's ability to cover its short-term liabilities with its quick assets. This indicates a strong liquidity position for Hilton Worldwide Holdings Inc during that period.
In 2019, the quick ratio was 0.70, which was lower than the following year but higher than 2023. This suggests that the company faced liquidity challenges in 2019 compared to the improvement seen in 2023.
Overall, Hilton Worldwide Holdings Inc's quick ratio has shown varying trends over the years, with fluctuations in its ability to cover short-term obligations with its liquid assets. It is essential for investors and stakeholders to monitor these ratios regularly to assess the company's liquidity position and financial health.
Peer comparison
Dec 31, 2023