Hilton Worldwide Holdings Inc (HLT)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,301,000 | 800,000 | 1,209,000 | 1,427,000 | 3,218,000 |
| Short-term investments | US$ in thousands | -12,251,000 | — | — | — | — |
| Receivables | US$ in thousands | 1,583,000 | 1,487,000 | 1,327,000 | 1,068,000 | 771,000 |
| Total current liabilities | US$ in thousands | 4,700,000 | 3,722,000 | 3,372,000 | 3,019,000 | 2,431,000 |
| Quick ratio | -1.99 | 0.61 | 0.75 | 0.83 | 1.64 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,301,000K
+ $-12,251,000K
+ $1,583,000K)
÷ $4,700,000K
= -1.99
The quick ratio of Hilton Worldwide Holdings Inc has shown a declining trend over the years, starting at a healthy 1.64 in December 31, 2020, and decreasing to 0.83 by December 31, 2021, 0.75 by December 31, 2022, and further dropping to 0.61 by December 31, 2023. The ratio took a significant negative turn, plummeting to -1.99 by December 31, 2024, indicating a concerning situation where current liabilities exceeded the sum of the company's most liquid assets that could be quickly converted to cash.
A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations with its liquid assets alone. Potential reasons for the declining trend could include deteriorating cash reserves, difficulties in converting receivables into cash, or a significant increase in short-term liabilities. This downward trend in the quick ratio may raise concerns about Hilton Worldwide Holdings Inc's short-term liquidity and its ability to cover immediate financial obligations. Management should closely monitor and address the factors impacting liquidity to ensure the company's financial stability.
Peer comparison
Dec 31, 2024