Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Hilton Worldwide Holdings Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Hilton Worldwide Holdings Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Hilton Worldwide Holdings Inc. payables turnover ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Hilton Worldwide Holdings Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Receivables Turnover
Hilton Worldwide Holdings Inc., receivables turnover 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) | ||||||
| Revenues | 10,235) | 8,773) | 5,788) | 4,307) | 9,452) | |
| Accounts receivable, net of allowance for credit losses | 1,487) | 1,327) | 1,068) | 771) | 1,261) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 6.88 | 6.61 | 5.42 | 5.59 | 7.50 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Airbnb Inc. | 39.83 | 42.00 | 42.04 | 17.80 | — | |
| Booking Holdings Inc. | 6.57 | 7.67 | 8.07 | 12.85 | 8.97 | |
| Chipotle Mexican Grill Inc. | 85.44 | 80.79 | 75.77 | 57.27 | 69.36 | |
| McDonald’s Corp. | 3.92 | 4.14 | 5.23 | 3.86 | 4.24 | |
| Starbucks Corp. | 30.38 | 27.44 | 30.92 | 26.62 | 30.15 | |
| Receivables Turnover, Sector | ||||||
| Consumer Services | 11.92 | 12.89 | 14.36 | 12.53 | 11.63 | |
| Receivables Turnover, Industry | ||||||
| Consumer Discretionary | 17.84 | 17.95 | 21.21 | 21.81 | 21.46 | |
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
Receivables turnover = Revenues ÷ Accounts receivable, net of allowance for credit losses
= 10,235 ÷ 1,487 = 6.88
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Hilton Worldwide Holdings Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
Hilton Worldwide Holdings Inc., payables turnover 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) | ||||||
| Revenues | 10,235) | 8,773) | 5,788) | 4,307) | 9,452) | |
| Accounts payable | 457) | 368) | 274) | 224) | 303) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 22.40 | 23.84 | 21.12 | 19.23 | 31.19 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Airbnb Inc. | 12.08 | 10.94 | 9.77 | 10.96 | — | |
| Booking Holdings Inc. | 6.14 | 6.82 | 6.91 | 9.25 | 12.16 | |
| Chipotle Mexican Grill Inc. | 36.86 | 35.61 | 35.79 | 40.52 | 38.37 | |
| McDonald’s Corp. | 7.46 | 7.53 | 7.99 | 9.42 | 7.85 | |
| Starbucks Corp. | 16.92 | 16.57 | 17.06 | 18.50 | 15.99 | |
| Payables Turnover, Sector | ||||||
| Consumer Services | 10.01 | 10.75 | 11.42 | 14.22 | 13.10 | |
| Payables Turnover, Industry | ||||||
| Consumer Discretionary | 5.18 | 4.80 | 4.66 | 4.74 | 5.51 | |
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
Payables turnover = Revenues ÷ Accounts payable
= 10,235 ÷ 457 = 22.40
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Hilton Worldwide Holdings Inc. payables turnover ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
Working Capital Turnover
Hilton Worldwide Holdings Inc., working capital turnover 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) | |
| Less: Current liabilities | 3,722) | 3,372) | 3,019) | 2,431) | 2,871) | |
| Working capital | (1,108) | (502) | (148) | 1,771) | (778) | |
| Revenues | 10,235) | 8,773) | 5,788) | 4,307) | 9,452) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | 2.43 | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Airbnb Inc. | 1.51 | 1.22 | 0.99 | 0.89 | — | |
| Booking Holdings Inc. | 5.77 | 2.33 | 1.59 | 0.77 | 3.37 | |
| Chipotle Mexican Grill Inc. | 16.73 | 34.00 | 14.86 | 10.01 | 13.77 | |
| McDonald’s Corp. | 8.64 | 5.39 | 3.13 | 131.28 | — | |
| Starbucks Corp. | — | — | 18.11 | 51.17 | — | |
| Working Capital Turnover, Sector | ||||||
| Consumer Services | 8.74 | 5.39 | 3.49 | 3.50 | 13.17 | |
| Working Capital Turnover, Industry | ||||||
| Consumer Discretionary | 14.99 | 18.57 | 11.02 | 13.68 | 25.90 | |
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
Working capital turnover = Revenues ÷ Working capital
= 10,235 ÷ -1,108 = —
2 Click competitor name to see calculations.
Average Receivable Collection Period
Hilton Worldwide Holdings Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 6.88 | 6.61 | 5.42 | 5.59 | 7.50 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 53 | 55 | 67 | 65 | 49 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Airbnb Inc. | 9 | 9 | 9 | 21 | — | |
| Booking Holdings Inc. | 56 | 48 | 45 | 28 | 41 | |
| Chipotle Mexican Grill Inc. | 4 | 5 | 5 | 6 | 5 | |
| McDonald’s Corp. | 93 | 88 | 70 | 95 | 86 | |
| Starbucks Corp. | 12 | 13 | 12 | 14 | 12 | |
| Average Receivable Collection Period, Sector | ||||||
| Consumer Services | 31 | 28 | 25 | 29 | 31 | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Discretionary | 20 | 20 | 17 | 17 | 17 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.88 = 53
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Hilton Worldwide Holdings Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
Average Payables Payment Period
Hilton Worldwide Holdings Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 22.40 | 23.84 | 21.12 | 19.23 | 31.19 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 16 | 15 | 17 | 19 | 12 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Airbnb Inc. | 30 | 33 | 37 | 33 | — | |
| Booking Holdings Inc. | 59 | 54 | 53 | 39 | 30 | |
| Chipotle Mexican Grill Inc. | 10 | 10 | 10 | 9 | 10 | |
| McDonald’s Corp. | 49 | 48 | 46 | 39 | 46 | |
| Starbucks Corp. | 22 | 22 | 21 | 20 | 23 | |
| Average Payables Payment Period, Sector | ||||||
| Consumer Services | 36 | 34 | 32 | 26 | 28 | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Discretionary | 70 | 76 | 78 | 77 | 66 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 22.40 = 16
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |