Hyatt Hotels Corporation (H)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 1,081,000 | 702,000 | 553,000 | 549,000 |
| Long-term debt | US$ in thousands | 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 | 1,612,000 | 1,612,000 | 1,621,000 | 1,621,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 3,962,000 | 3,756,000 | 3,642,000 | 3,622,000 |
| Return on total capital | 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% | 19.39% | 13.08% | 10.51% | 10.47% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $455,000K ÷ ($2,305,000K + $3,564,000K)
= 7.75%
To analyze Hyatt Hotels Corporation's return on total capital based on the provided data, we observe a fluctuating trend over the past eight quarters. In Q1 2022, the return on total capital was -1.48%, indicating a negative return on the company's total capital employed during that period. This was followed by a significant improvement in subsequent quarters, with an increase to 2.24% in Q2 2022, 4.39% in Q3 2022, and further to 5.92% in Q4 2022.
Entering 2023, Hyatt Hotels Corporation continued to improve its return on total capital, reaching 6.83% in Q1 2023, the highest observed figure in the provided data. However, this trend reversed slightly in the following quarters, with the return on total capital decreasing to 5.88% in Q2 2023 and further to 5.53% in Q3 2023. The latest reported figure in Q4 2023 shows a return on total capital of 4.59%.
Overall, the data suggests that Hyatt Hotels Corporation has shown some variability in its return on total capital performance, with notable improvements followed by slight decreases in subsequent periods. Further analysis and monitoring of this metric are necessary to assess the company's ongoing capital utilization efficiency and overall financial health.
Peer comparison
Dec 31, 2023