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.
Peer comparison
Dec 31, 2024