Hyatt Hotels Corporation (H)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,296,000 | 1,378,000 | 975,000 | 684,000 | 220,000 | 488,000 | 448,000 | 586,000 | 455,000 | 132,000 | 224,000 | 9,000 | -222,000 | -396,000 | -677,000 | -904,000 | -703,000 | -179,000 | 278,000 | 600,000 |
| Total stockholders’ equity | US$ in thousands | 3,547,000 | 3,697,000 | 3,850,000 | 3,657,000 | 3,564,000 | 3,586,000 | 3,682,000 | 3,693,000 | 3,699,000 | 3,443,000 | 3,609,000 | 3,521,000 | 3,563,000 | 3,586,000 | 2,906,000 | 2,885,000 | 3,211,000 | 3,350,000 | 3,490,000 | 3,705,000 |
| ROE | 36.54% | 37.27% | 25.32% | 18.70% | 6.17% | 13.61% | 12.17% | 15.87% | 12.30% | 3.83% | 6.21% | 0.26% | -6.23% | -11.04% | -23.30% | -31.33% | -21.89% | -5.34% | 7.97% | 16.19% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,296,000K ÷ $3,547,000K
= 36.54%
The Return on Equity (ROE) of Hyatt Hotels Corporation has shown fluctuating trends over the years. In the first quarter of 2020, the ROE stood at 16.19%, indicating a healthy return generated from shareholders' equity. However, there was a significant decline in the second quarter of 2020, with the ROE dropping to 7.97%. The trend continued to deteriorate as the ROE turned negative in the subsequent quarters, reaching its lowest point of -31.33% in the first quarter of 2021.
Subsequently, there was a gradual improvement in the ROE, with positive values returning by the end of 2021. From 2022 onwards, the ROE showed a positive upward trend, indicating a recovery in the company's ability to generate profits from shareholders' equity. By the fourth quarter of 2024, the ROE had significantly increased to 36.54%, reflecting a strong performance in utilizing shareholders' equity to generate returns.
Overall, the analysis suggests that Hyatt Hotels Corporation went through a period of financial challenges, as indicated by the negative ROE values, but successfully managed to improve its performance and financial health in the later years, achieving a high ROE by the end of 2024.
Peer comparison
Dec 31, 2024