Hilton Worldwide Holdings Inc (HLT)
Quick ratio
| 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 | US$ in thousands | 800,000 | 698,000 | 806,000 | 901,000 | 1,209,000 | 1,282,000 | 1,175,000 | 1,432,000 | 1,427,000 | 1,288,000 | 1,044,000 | 2,402,000 | 3,218,000 | 3,405,000 | 3,503,000 | 1,734,000 | 538,000 | 719,000 | 635,000 | 382,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,487,000 | 1,396,000 | 1,402,000 | 1,298,000 | 1,327,000 | 1,278,000 | 1,289,000 | 1,054,000 | 1,068,000 | 1,012,000 | 952,000 | 797,000 | 771,000 | 890,000 | 827,000 | 1,111,000 | 1,261,000 | 1,193,000 | 1,190,000 | 1,102,000 |
| Total current liabilities | US$ in thousands | 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 | 2,871,000 | 2,900,000 | 2,780,000 | 2,794,000 |
| 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 |
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
The quick ratio of Hilton Worldwide Holdings Inc has shown a fluctuating trend over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In Q4 2022, Hilton had a quick ratio of 0.83, indicating that the company had $0.83 of liquid assets available to cover each dollar of its current liabilities. The ratio then decreased to 0.86 in Q3 2022 and remained stable in Q2 2022. However, it saw a slight decline to 0.73 in Q1 2023.
Subsequently, in Q2 and Q3 2023, there was a slight improvement as the quick ratio increased to 0.73 and 0.67, respectively. However, in Q4 2023, the ratio decreased further to 0.68.
Overall, the downward trend in the quick ratio over the quarters raises potential concerns about Hilton's liquidity and ability to meet its short-term obligations. It would be advisable to closely monitor the company's management of current assets and liabilities to ensure its financial health and stability.
Peer comparison
Dec 31, 2023