Hyatt Hotels Corporation (H)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 87.05% | 87.14% | 87.21% | 86.63% | 74.12% |
| Operating profit margin | 73.86% | 74.36% | 74.41% | 73.13% | 48.23% |
| Pretax margin | 19.76% | 4.74% | 6.06% | 1.34% | -49.90% |
| Net profit margin | 16.39% | 3.36% | 7.59% | -6.75% | -36.54% |
Hyatt Hotels Corporation has demonstrated a consistent improvement in its profitability ratios over the years based on the provided data.
- The Gross Profit Margin has shown a positive trend, increasing from 74.12% in 2020 to 87.05% in 2024. This indicates that the company has been able to efficiently control its cost of goods sold while increasing its revenue.
- The Operating Profit Margin has also shown significant growth, rising from 48.23% in 2020 to 73.86% in 2024. This indicates that Hyatt Hotels Corporation has been successful in managing its operating expenses more effectively and generating higher profits from its core business activities.
- The Pretax Margin has improved substantially, moving from a negative margin of -49.90% in 2020 to a positive margin of 19.76% in 2024. This suggests that the company has been able to better manage its non-operating expenses and generate higher earnings before taxes.
- The Net Profit Margin has also seen a remarkable improvement, shifting from a negative margin of -36.54% in 2020 to a positive margin of 16.39% in 2024. This signifies that Hyatt Hotels Corporation has become more profitable after accounting for all expenses, including taxes.
Overall, the upward trajectory of Hyatt Hotels Corporation's profitability margins reflects the company's efforts to enhance operational efficiency, control costs, and increase profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 43.84% | 37.90% | 36.23% | 19.09% | 10.17% |
| Return on assets (ROA) | 9.73% | 1.71% | 3.70% | -1.76% | -7.70% |
| Return on total capital | 84.98% | 7.75% | 8.34% | 2.75% | -13.43% |
| Return on equity (ROE) | 36.54% | 6.17% | 12.30% | -6.23% | -21.89% |
Based on the provided data, Hyatt Hotels Corporation has shown significant improvement in its profitability ratios over the years.
1. Operating Return on Assets (Operating ROA) has seen a notable increase from 10.17% in December 2020 to 43.84% in December 2024. This indicates that the company has been able to generate more operating income for each dollar of assets employed, leading to improved operational efficiency.
2. Return on Assets (ROA) has also demonstrated a positive trend, moving from negative figures in 2020 and 2021 to 9.73% by the end of 2024. This signifies that Hyatt Hotels Corporation has been better at generating profits relative to its total assets.
3. Return on Total Capital has shown a remarkable improvement, with a sharp rise from -13.43% in December 2020 to 84.98% in December 2024. This suggests that the company has been able to generate higher returns for both equity and debt holders, indicating strong financial performance.
4. Return on Equity (ROE) has also seen a positive trajectory, increasing from -21.89% in December 2020 to 36.54% by the end of 2024. This implies that the company has been effectively utilizing shareholder equity to generate profits and create value for its investors.
Overall, the profitability analysis of Hyatt Hotels Corporation showcases a consistent and significant enhancement in financial performance over the years, reflecting improved efficiency and value creation for stakeholders.