Hyatt Hotels Corporation (H)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	220,000	455,000	-222,000	-703,000	766,000
Total stockholders’ equity	US$ in thousands	3,564,000	3,699,000	3,563,000	3,211,000	3,962,000
ROE		6.17%	12.30%	-6.23%	-21.89%	19.33%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $220,000K ÷ $3,564,000K
= 6.17%

Hyatt Hotels Corporation's return on equity (ROE) has exhibited significant fluctuation over the past five years. In 2023, the ROE decreased to 6.17% from 12.30% in 2022, indicating a decline in the company's profitability in generating returns for its shareholders. This decrease may raise concerns among investors and stakeholders regarding the company's ability to efficiently utilize its equity to generate profits.

The negative ROE values in 2021 and 2020 (-6.23% and -21.89%, respectively) suggest that during those years, the company experienced losses relative to its equity capital. These negative ROE figures may signal operational challenges or financial difficulties that impacted the company's performance and ability to generate returns for its shareholders.

In contrast, the ROE of 19.33% in 2019 reflected a strong performance, indicating that the company was able to generate substantial profits relative to its equity that year. This positive ROE value suggests that the company was efficient in utilizing its shareholders' equity to produce returns, potentially attracting investors seeking profitable opportunities.

Overall, the volatile nature of Hyatt Hotels Corporation's ROE over the past five years highlights varying levels of profitability and efficiency in utilizing equity capital. Investors and analysts may closely monitor future ROE trends to assess the company's financial performance and sustainability.