Hyatt Hotels Corporation (H)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,864,000 | 4,461,000 | 2,406,000 | 928,000 | 4,746,000 |
| Revenue | US$ in thousands | 6,541,000 | 5,995,000 | 3,290,000 | 1,924,000 | 5,694,000 |
| Operating profit margin | 74.36% | 74.41% | 73.13% | 48.23% | 83.35% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $4,864,000K ÷ $6,541,000K
= 74.36%
Hyatt Hotels Corporation's operating profit margin has exhibited variability over the five-year period from 2019 to 2023. The company experienced a significant decline in its operating profit margin in 2020, with a negative margin of -33.98%. This indicates that the company's operating expenses exceeded its operating revenues during that year.
However, Hyatt Hotels Corporation managed to improve its operating profit margin in subsequent years. In 2021, the margin was still negative at -8.29%, but it showed a positive trend, reaching 3.71% in 2019. This positive trajectory continued into 2022 with a margin of 6.76%.
Despite the improvement in 2022, the operating profit margin decreased in 2023 to 4.57%. This suggests that the company may have faced challenges in efficiently managing its operating expenses relative to its operating revenues during that year.
In conclusion, Hyatt Hotels Corporation's operating profit margin has shown fluctuations over the analyzed period, reflecting the company's ability to control costs and generate profitability from its operations. Monitoring this ratio is crucial for evaluating the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2023