Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Hilton Worldwide Holdings Inc., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.70 | 0.85 | 0.95 | 1.73 | 0.73 | |
| Quick ratio | 0.63 | 0.77 | 0.85 | 1.66 | 0.66 | |
| Cash ratio | 0.24 | 0.38 | 0.50 | 1.34 | 0.22 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Hilton Worldwide Holdings Inc. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Hilton Worldwide Holdings Inc. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Hilton Worldwide Holdings Inc. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Current Ratio
Hilton Worldwide Holdings Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 2,614) | 2,870) | 2,871) | 4,202) | 2,093) | |
| Current liabilities | 3,722) | 3,372) | 3,019) | 2,431) | 2,871) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.70 | 0.85 | 0.95 | 1.73 | 0.73 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.66 | 1.86 | 1.95 | 1.73 | — | |
| Booking Holdings Inc. | 1.28 | 1.86 | 2.10 | 3.56 | 1.83 | |
| Chipotle Mexican Grill Inc. | 1.57 | 1.28 | 1.58 | 1.73 | 1.61 | |
| McDonald’s Corp. | 1.16 | 1.43 | 1.78 | 1.01 | 0.98 | |
| Starbucks Corp. | 0.78 | 0.77 | 1.20 | 1.06 | 0.92 | |
| Current Ratio, Sector | ||||||
| Consumer Services | 1.25 | 1.46 | 1.71 | 1.60 | 1.27 | |
| Current Ratio, Industry | ||||||
| Consumer Discretionary | 1.20 | 1.15 | 1.25 | 1.18 | 1.10 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,614 ÷ 3,722 = 0.70
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Hilton Worldwide Holdings Inc. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Quick Ratio
Hilton Worldwide Holdings Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 800) | 1,209) | 1,427) | 3,218) | 538) | |
| Restricted cash and cash equivalents | 75) | 77) | 85) | 45) | 92) | |
| Accounts receivable, net of allowance for credit losses | 1,487) | 1,327) | 1,068) | 771) | 1,261) | |
| Total quick assets | 2,362) | 2,613) | 2,580) | 4,034) | 1,891) | |
| Current liabilities | 3,722) | 3,372) | 3,019) | 2,431) | 2,871) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.63 | 0.77 | 0.85 | 1.66 | 0.66 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.63 | 1.83 | 1.92 | 1.70 | — | |
| Booking Holdings Inc. | 1.20 | 1.73 | 2.00 | 3.38 | 1.68 | |
| Chipotle Mexican Grill Inc. | 1.37 | 1.09 | 1.35 | 1.28 | 1.44 | |
| McDonald’s Corp. | 1.03 | 1.24 | 1.64 | 0.90 | 0.86 | |
| Starbucks Corp. | 0.55 | 0.48 | 0.93 | 0.75 | 0.59 | |
| Quick Ratio, Sector | ||||||
| Consumer Services | 1.13 | 1.30 | 1.56 | 1.42 | 1.06 | |
| Quick Ratio, Industry | ||||||
| Consumer Discretionary | 0.85 | 0.81 | 0.92 | 0.88 | 0.79 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,362 ÷ 3,722 = 0.63
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Hilton Worldwide Holdings Inc. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Cash Ratio
Hilton Worldwide Holdings Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 800) | 1,209) | 1,427) | 3,218) | 538) | |
| Restricted cash and cash equivalents | 75) | 77) | 85) | 45) | 92) | |
| Total cash assets | 875) | 1,286) | 1,512) | 3,263) | 630) | |
| Current liabilities | 3,722) | 3,372) | 3,019) | 2,431) | 2,871) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.24 | 0.38 | 0.50 | 1.34 | 0.22 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.01 | 1.21 | 1.31 | 1.24 | — | |
| Booking Holdings Inc. | 0.95 | 1.46 | 1.79 | 3.23 | 1.36 | |
| Chipotle Mexican Grill Inc. | 1.26 | 0.98 | 1.23 | 1.16 | 1.32 | |
| McDonald’s Corp. | 0.67 | 0.68 | 1.17 | 0.56 | 0.25 | |
| Starbucks Corp. | 0.42 | 0.35 | 0.81 | 0.63 | 0.45 | |
| Cash Ratio, Sector | ||||||
| Consumer Services | 0.80 | 0.95 | 1.24 | 1.16 | 0.75 | |
| Cash Ratio, Industry | ||||||
| Consumer Discretionary | 0.57 | 0.55 | 0.71 | 0.69 | 0.57 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 875 ÷ 3,722 = 0.24
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Hilton Worldwide Holdings Inc. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |