Hyatt Hotels Corporation (H)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 5,797,000 | 6,197,000 | 5,696,000 | 5,256,000 | 4,868,000 | 4,790,000 | 4,679,000 | 4,802,000 | 4,463,000 | 4,190,000 | 3,988,000 | 3,104,000 | 2,406,000 | 1,736,000 | 980,000 | 251,000 | 928,000 | 2,120,000 | 3,326,000 | 4,590,000 |
| Total assets | US$ in thousands | 13,324,000 | 11,865,000 | 12,757,000 | 11,719,000 | 12,833,000 | 12,317,000 | 12,589,000 | 12,618,000 | 12,312,000 | 12,402,000 | 12,650,000 | 12,689,000 | 12,603,000 | 9,477,000 | 8,962,000 | 8,769,000 | 9,129,000 | 9,225,000 | 8,580,000 | 8,298,000 |
| Operating ROA | 43.51% | 52.23% | 44.65% | 44.85% | 37.93% | 38.89% | 37.17% | 38.06% | 36.25% | 33.78% | 31.53% | 24.46% | 19.09% | 18.32% | 10.94% | 2.86% | 10.17% | 22.98% | 38.76% | 55.31% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $5,797,000K ÷ $13,324,000K
= 43.51%
Operating Return on Assets (Operating ROA) is a key financial ratio that indicates how efficiently a company utilizes its assets to generate operating profits. Analyzing the data provided for Hyatt Hotels Corporation, we observe fluctuations in the company's Operating ROA over the reported periods.
From March 31, 2020, to June 30, 2020, the Operating ROA decreased significantly from 55.31% to 38.76%, indicating a decline in profitability relative to its assets. This trend continued till December 31, 2020, with the ratio dropping to 10.17%. The company experienced a significant drop in efficiency during this period.
However, from March 31, 2021, to September 30, 2021, there was an improvement in the Operating ROA, reflecting an increase in operational efficiency to 18.32%. The ratio continued to increase up to December 31, 2021, reaching 19.09%.
The most significant improvement in Operating ROA occurred from March 31, 2022, to September 30, 2022, where the ratio increased from 24.46% to 33.78%, indicating a substantial enhancement in profitability generated from the company's assets.
Although there were fluctuations in the subsequent periods, with gradual increases followed by slight declines, the overall trend shows that Hyatt Hotels Corporation managed to maintain a relatively stable and solid level of Operating ROA throughout the latter part of the reporting period, with the ratio ranging between 37.93% and 52.23%.
Overall, a higher Operating ROA suggests that the company is efficiently managing its assets to generate operating profits. Hyatt Hotels Corporation's performance in this aspect indicates its ability to effectively utilize its assets to generate operating income, reflecting positively on its operational efficiency and financial health.
Peer comparison
Dec 31, 2024