Hyatt Hotels Corporation (H)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,841,000 | 455,000 | 513,000 | 207,000 | -832,000 |
| Long-term debt | US$ in thousands | 3,326,000 | 2,305,000 | 2,453,000 | 3,968,000 | 2,984,000 |
| Total stockholders’ equity | US$ in thousands | 3,547,000 | 3,564,000 | 3,699,000 | 3,563,000 | 3,211,000 |
| Return on total capital | 84.98% | 7.75% | 8.34% | 2.75% | -13.43% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,841,000K ÷ ($3,326,000K + $3,547,000K)
= 84.98%
Hyatt Hotels Corporation's return on total capital has shown a notable improvement over the past few years. Starting at -13.43% in 2020, the company managed to turn around its performance significantly, achieving a positive return of 2.75% in 2021. This positive trend continued with further improvements in subsequent years, reaching 8.34% in 2022 and 7.75% in 2023.
However, the most striking development occurred in 2024, when Hyatt Hotels Corporation's return on total capital surged to an impressive 84.98%. This substantial increase indicates a substantial enhancement in the company's efficiency in generating returns from its total capital employed.
Overall, the upward trajectory in Hyatt Hotels Corporation's return on total capital demonstrates the company's efforts in maximizing the utilization of its capital resources to generate favorable returns for its stakeholders. It also suggests a strong performance and effective capital allocation strategies implemented by the company in recent years.
Peer comparison
Dec 31, 2024