Hyatt Hotels Corporation (H)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 1,296,000 220,000 455,000 -222,000 -703,000
Total assets US$ in thousands 13,324,000 12,833,000 12,312,000 12,603,000 9,129,000
ROA 9.73% 1.71% 3.70% -1.76% -7.70%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $1,296,000K ÷ $13,324,000K
= 9.73%

The return on assets (ROA) for Hyatt Hotels Corporation has shown fluctuations over the past few years. As of December 31, 2020, the ROA was at a negative 7.70%, indicating that the company's assets were not generating a positive return. However, there was an improvement in performance by December 31, 2021, with the ROA improving to a less negative value of -1.76%.

By the end of December 31, 2022, there was a significant turnaround as the ROA increased to a positive 3.70%, indicating that the company's assets were generating a positive return at this time. The positive trend continued into December 31, 2023, with the ROA standing at 1.71%.

The most notable improvement was seen by December 31, 2024, with the ROA further increasing to 9.73%. This indicates that Hyatt Hotels Corporation was able to significantly increase the return generated from its assets, showing a positive trend in asset utilization and profitability. Overall, the company's ROA has shown improvement over the years, aligning with its efforts to enhance operational efficiency and profitability.