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HLT (Hilton Worldwide Holdings) Current Ratio : 0.80 (As of Sep. 2024)


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What is Hilton Worldwide Holdings Current Ratio?

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Hilton Worldwide Holdings's current ratio for the quarter that ended in Sep. 2024 was 0.80.

Hilton Worldwide Holdings has a current ratio of 0.80. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Hilton Worldwide Holdings has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.

The historical rank and industry rank for Hilton Worldwide Holdings's Current Ratio or its related term are showing as below:

HLT' s Current Ratio Range Over the Past 10 Years
Min: 0.64   Med: 0.91   Max: 1.99
Current: 0.8

During the past 13 years, Hilton Worldwide Holdings's highest Current Ratio was 1.99. The lowest was 0.64. And the median was 0.91.

HLT's Current Ratio is ranked worse than
71.14% of 835 companies
in the Travel & Leisure industry
Industry Median: 1.27 vs HLT: 0.80

Hilton Worldwide Holdings Current Ratio Historical Data

The historical data trend for Hilton Worldwide Holdings's Current Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hilton Worldwide Holdings Current Ratio Chart

Hilton Worldwide Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Current Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.73 1.73 0.95 0.85 0.70

Hilton Worldwide Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Current Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.70 0.70 0.84 0.64 0.80

Competitive Comparison of Hilton Worldwide Holdings's Current Ratio

For the Lodging subindustry, Hilton Worldwide Holdings's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hilton Worldwide Holdings's Current Ratio Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Hilton Worldwide Holdings's Current Ratio distribution charts can be found below:

* The bar in red indicates where Hilton Worldwide Holdings's Current Ratio falls into.



Hilton Worldwide Holdings Current Ratio Calculation

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.

Hilton Worldwide Holdings's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Current Ratio (A: Dec. 2023 )=Total Current Assets (A: Dec. 2023 )/Total Current Liabilities (A: Dec. 2023 )
=2614/3722
=0.70

Hilton Worldwide Holdings's Current Ratio for the quarter that ended in Sep. 2024 is calculated as

Current Ratio (Q: Sep. 2024 )=Total Current Assets (Q: Sep. 2024 )/Total Current Liabilities (Q: Sep. 2024 )
=3573/4491
=0.80

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Hilton Worldwide Holdings  (NYSE:HLT) Current Ratio Explanation

The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.

Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.

The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.

If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.


Hilton Worldwide Holdings Current Ratio Related Terms

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Hilton Worldwide Holdings Business Description

Address
7930 Jones Branch Drive, Suite 1100, McLean, VA, USA, 22102
Hilton Worldwide Holdings operates 1.2 million rooms across its more than 20 brands serving the premium economy scale through luxury segments. Hampton and Hilton are the two largest brands, representing 28% and 19%, respectively, of the company's total rooms, as of Dec. 31, 2023. Recent brands launched over the last few years include Home2, Curio, Canopy, Spark, Tru, Tempo, and LivSmart, as well as a partnership with Small Luxury Hotels and acquisitions of Nomad and Graduate Hotels. Managed and franchised hotels represent the vast majority of adjusted EBITDA, predominantly from the Americas regions.
Executives
Laura Fuentes officer: See Remarks 7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Judith Mchale director C/O RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Melanie Healey director VERIZON COMMUNICATIONS INC., 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Christopher J Nassetta director, officer: See Remarks 77 WEST WACKER DRIVE, SUITE 3900, CHICAGO IL 60601
Michael W Duffy officer: See Remarks 7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Anne-marie W D'angelo officer: See Remarks 801 E. 86TH AVENUE, MERRILLVILLE IN 46410
Kristin Ann Campbell officer: See Remarks 500 STAPLES DRIVE, FRAMINGHAM MA 01702
Douglas M Steenland director 2700 LONE OAK PARKWAY, EAGAN MN 55121
Matthew W Schuyler officer: See Remarks 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Raymond E Mabus director C/O DANA INCORPORATED, 3939 TECHNOLOGY DRIVE, MAUMEE OH 43537
Kevin J Jacobs officer: See Remarks 7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Martin Rinck officer: See Remarks 7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Christopher W Silcock officer: See Remarks 7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Chris Carr director 7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Jonathan W. Witter officer: See Remarks 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102