Hyatt Hotels Corporation (H)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 12,833,000 | 12,312,000 | 12,603,000 | 9,129,000 | 8,417,000 |
| Operating ROA | 37.90% | 36.23% | 19.09% | 10.17% | 56.39% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $4,864,000K ÷ $12,833,000K
= 37.90%
Hyatt Hotels Corporation's operating return on assets (operating ROA) has shown mixed performance over the past five years. In 2023, the operating ROA was 2.38%, indicating that the company generated $0.0238 in operating income for every $1 of assets. This represents a decrease from the prior year's operating ROA of 3.23%, suggesting a slight decline in the company's operating efficiency.
Comparing to 2021 and 2020, when the operating ROA was negative (-1.99% and -7.69%, respectively), the significant improvement in 2023 is notable. The negative operating ROA in 2021 and 2020 indicates that Hyatt Hotels Corporation's operating income was insufficient to cover its asset base, which can be concerning for investors and creditors.
However, the operating ROA in 2019 was positive at 2.22%, indicating a better performance compared to 2023. Overall, Hyatt Hotels Corporation's operating ROA has been volatile in recent years, showing improvements in some periods and declines in others. Investors and stakeholders should closely monitor the company's operating efficiency to assess its ability to generate profits from its assets in the long run.
Peer comparison
Dec 31, 2023