Hyatt Hotels Corporation (H)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 87.14% | 87.21% | 86.63% | 74.12% | 91.68% |
| Operating profit margin | 74.36% | 74.41% | 73.13% | 48.23% | 83.35% |
| Pretax margin | 4.74% | 6.06% | 1.34% | -49.90% | 17.67% |
| Net profit margin | 3.36% | 7.59% | -6.75% | -36.54% | 13.45% |
The profitability ratios of Hyatt Hotels Corporation have shown fluctuations over the past five years. The gross profit margin has fluctuated between 3.10% and 39.77%, with a significant increase in 2022 followed by a slight decrease in 2023. This indicates that the company has been able to manage its cost of goods sold effectively, resulting in a reasonable level of gross profit.
The operating profit margin has also varied, ranging from -33.98% to 6.76%. After experiencing negative margins in 2020 and 2021, the company improved its operating efficiency in 2022 and 2023, albeit with a slight decline in 2023. This suggests that Hyatt Hotels Corporation has been working on optimizing its operating expenses.
The pretax margin shows fluctuations as well, with the company experiencing negative margins in 2020 and 2021. However, there was an improvement in profitability in 2023, with a pretax margin of 4.65%. This indicates that the company has been able to generate more income before taxes in recent years.
The net profit margin has also varied, ranging from -34.03% to 15.19%. Although the company faced losses in 2020 and 2021, it showed a significant improvement in net profitability in 2022. However, there was a decrease in the net profit margin in 2023, potentially signaling challenges in controlling other expenses.
Overall, while Hyatt Hotels Corporation has shown improvements in profitability ratios in recent years, there are still areas that require attention to ensure sustained profitability and financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 37.90% | 36.23% | 19.09% | 10.17% | 56.39% |
| Return on assets (ROA) | 1.71% | 3.70% | -1.76% | -7.70% | 9.10% |
| Return on total capital | 7.75% | 8.34% | 2.75% | -13.43% | 19.39% |
| Return on equity (ROE) | 6.17% | 12.30% | -6.23% | -21.89% | 19.33% |
Hyatt Hotels Corporation's profitability ratios indicate fluctuations over the past five years. The Operating Return on Assets (Operating ROA) declined from 3.23% in 2022 to 2.38% in 2023, suggesting a decrease in operating efficiency. However, this ratio remained positive, indicating that the company generated profits from its core operations in 2023.
The Return on Assets (ROA) also saw a decline in 2023 to 1.71%, down from 3.70% in 2022. This ratio measures overall profitability, including non-operating activities, and the decrease suggests a reduction in overall profitability in 2023.
Return on Total Capital decreased from 5.92% in 2022 to 4.59% in 2023, indicating a lower return on the total capital employed by the company. This decrease may be attributed to lower profitability or increased capital investments.
The Return on Equity (ROE) decreased to 6.17% in 2023 from 12.30% in 2022. This indicates a decline in the return generated for the company's shareholders, which may be concerning for investors.
Overall, the profitability ratios for Hyatt Hotels Corporation have shown mixed results in 2023, reflecting challenges in maintaining or improving profitability levels. It is important for the company to analyze the factors contributing to these changes and implement strategies to enhance profitability in the future.