Hyatt Hotels Corporation (H)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,547,000 | 3,564,000 | 3,699,000 | 3,563,000 | 3,211,000 |
| ROE | 36.54% | 6.17% | 12.30% | -6.23% | -21.89% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,296,000K ÷ $3,547,000K
= 36.54%
Based on the data provided for Hyatt Hotels Corporation's return on equity (ROE) over the years, we can observe a fluctuating trend.
As of December 31, 2020, the ROE was negative at -21.89%, indicating that the company's net income was insufficient to generate a positive return on the shareholders' equity.
By December 31, 2021, Hyatt Hotels Corporation managed to improve its ROE, although it was still negative at -6.23%. This suggests that the company continued to face challenges in generating profits relative to the equity invested by shareholders.
The trend changed in a positive direction by December 31, 2022, with the ROE standing at 12.30%. This improvement indicates a better utilization of shareholder equity to generate profits, reflecting a positive performance for the company.
The ROE slightly decreased to 6.17% by December 31, 2023, signaling a moderate dip in the profitability relative to the equity invested. However, the ratio remained positive, demonstrating that the company continued to deliver returns to its shareholders.
As of December 31, 2024, Hyatt Hotels Corporation experienced a significant increase in ROE, reaching 36.54%. This sharp rise indicates a substantial improvement in profitability and efficiency in utilizing shareholder equity to generate returns.
In summary, the ROE of Hyatt Hotels Corporation has shown variability over the years, with periods of negative returns followed by significant improvements. The recent surge to 36.54% signifies a notable turnaround in the company's profitability and effectiveness in generating returns for its shareholders.
Peer comparison
Dec 31, 2024