Hyatt Hotels Corporation (H)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,541,000 | 5,995,000 | 3,290,000 | 1,924,000 | 5,694,000 |
| Property, plant and equipment | US$ in thousands | 2,340,000 | 2,384,000 | 2,848,000 | 3,126,000 | 3,456,000 |
| Fixed asset turnover | 2.80 | 2.51 | 1.16 | 0.62 | 1.65 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,541,000K ÷ $2,340,000K
= 2.80
The fixed asset turnover of Hyatt Hotels Corporation has exhibited a varying trend over the past five years. In 2023, the fixed asset turnover ratio improved significantly to 2.85 compared to 2.47 in 2022, indicating that the company generated $2.85 in revenue for each dollar invested in fixed assets during the year. This substantial increase suggests that Hyatt Hotels efficiently utilized its fixed assets to generate sales.
The upward trend in fixed asset turnover from 2020 to 2023 reflects improvements in asset utilization efficiency, with the ratio more than quadrupling over this period. This signifies that the company has been successful in generating higher revenue relative to its investment in fixed assets, highlighting improved operational efficiency and potentially better management of its asset base.
Comparatively, the low fixed asset turnover ratios in 2020 and 2019 indicate lower efficiency in utilizing fixed assets to generate revenue during those years. However, the significant improvement from 2020 to 2023 underscores Hyatt Hotels' efforts to enhance operational performance and extract greater value from its fixed assets.
Overall, the progression of Hyatt Hotels Corporation's fixed asset turnover ratio signals a positive trajectory in asset utilization efficiency and operational performance, potentially contributing to enhanced financial sustainability and profitability in recent years.
Peer comparison
Dec 31, 2023