Hyatt Hotels Corporation (H)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,908,000 | 6,541,000 | 5,995,000 | 3,290,000 | 1,924,000 |
| Property, plant and equipment | US$ in thousands | 1,689,000 | 2,340,000 | 2,384,000 | 2,848,000 | 3,126,000 |
| Fixed asset turnover | 4.68 | 2.80 | 2.51 | 1.16 | 0.62 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,908,000K ÷ $1,689,000K
= 4.68
Hyatt Hotels Corporation's fixed asset turnover has shown a substantial improvement over the past five years. The ratio has increased steadily from 0.62 in December 31, 2020, to 4.68 in December 31, 2024. This indicates that the company is generating significantly more revenue relative to its investment in fixed assets. The rising trend suggests that Hyatt has been able to utilize its fixed assets more efficiently over time, possibly through effective asset management or improved operations. A higher fixed asset turnover ratio generally signifies better utilization of assets and can be a positive indicator of operational performance and profitability. This consistent improvement in fixed asset turnover reflects positively on Hyatt Hotels Corporation's ability to generate revenue from its fixed assets.
Peer comparison
Dec 31, 2024