Hyatt Hotels Corporation (H)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 4,758,000 4,103,000 2,507,000 896,000 455,000 499,000 458,000 682,000 513,000 358,000 555,000 253,000 207,000 38,000 -445,000 -788,000 -832,000 -171,000 438,000 858,000
Long-term debt US$ in thousands 3,326,000 2,687,000 2,684,000 2,304,000 2,305,000 3,049,000 3,053,000 2,454,000 2,453,000 3,150,000 3,798,000 3,815,000 3,968,000 2,978,000 2,986,000 2,982,000 2,984,000 2,981,000 2,491,000 1,602,000
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
Return on total capital 69.23% 64.27% 38.37% 15.03% 7.75% 7.52% 6.80% 11.09% 8.34% 5.43% 7.49% 3.45% 2.75% 0.58% -7.55% -13.43% -13.43% -2.70% 7.32% 16.17%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,758,000K ÷ ($3,326,000K + $3,547,000K)
= 69.23%

Hyatt Hotels Corporation's return on total capital fluctuated significantly over the specified period. The ratio ranged from negative figures, indicating losses on capital employed, to positive percentages, reflecting profitability and efficiency in generating returns for capital providers.

The return on total capital experienced a notable decline in the latter half of 2020 and the first half of 2021, with negative values indicating challenges in utilizing capital effectively to generate profits. However, there was a gradual improvement starting from the end of 2021, with a positive trend seen in 2022 and onwards.

In the recent quarters of 2024, Hyatt Hotels Corporation's return on total capital exhibited a substantial increase, reaching remarkable levels by the end of the year. The ratio of 69.23% as of December 31, 2024, indicates a substantial improvement in the company's ability to generate profits in relation to the total capital employed.

Overall, the trend in return on total capital reflects both operational challenges and improvements in Hyatt Hotels Corporation's capital efficiency and profitability over the analyzed period.