Hyatt Hotels Corporation (H)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 5,841,000 | 4,864,000 | 4,461,000 | 2,406,000 | 928,000 |
| Total assets | US$ in thousands | 13,324,000 | 12,833,000 | 12,312,000 | 12,603,000 | 9,129,000 |
| Operating ROA | 43.84% | 37.90% | 36.23% | 19.09% | 10.17% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $5,841,000K ÷ $13,324,000K
= 43.84%
Hyatt Hotels Corporation's operating return on assets (operating ROA) has shown a positive upward trend over the past five years. The operating ROA has increased significantly from 10.17% as of December 31, 2020, to 43.84% as of December 31, 2024. This indicates that the company has been effectively utilizing its assets to generate operating income.
The substantial improvement in operating ROA suggests that Hyatt Hotels Corporation has been able to enhance its operational efficiency and profitability over the years. This may be attributed to factors such as cost control measures, revenue growth initiatives, or strategic asset utilization.
A rising operating ROA signifies that the company is generating more operating income relative to its asset base, which is a positive indicator of financial performance. It also reflects the management's ability to effectively deploy resources to drive profitability.
Overall, the increasing trend in Hyatt Hotels Corporation's operating ROA highlights the company's improved operational performance and efficiency in utilizing its assets to generate operating income. This trend is likely to be viewed positively by investors and stakeholders as it indicates a stronger financial position and profitability for the company.
Peer comparison
Dec 31, 2024