Hyatt Hotels Corporation (H)

The solvency ratios of Hyatt Hotels Corporation indicate the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio decreased from 0.33 in 2020 to 0.25 in 2024, suggesting a reduction in the proportion of assets financed by debt over the period. This may indicate improved asset management and reduced financial risk.

The Debt-to-capital ratio fluctuated between 0.40 and 0.53 over the years, but generally remained within a stable range. It measures the extent of a company's financial leverage and shows the proportion of financing that comes from debt. Hyatt maintained a relatively consistent level of debt in relation to its capital structure.

The Debt-to-equity ratio peaked at 1.11 in 2021, indicating that the company had more debt than equity in that year. However, it decreased to 0.94 by 2024, suggesting a more balanced capital structure. A lower Debt-to-equity ratio signifies less reliance on debt financing compared to shareholders' equity.

The Financial leverage ratio also fluctuated, ranging from 2.84 to 3.76 during the period. This ratio indicates the company's ability to meet its financial obligations and highlights the proportion of debt in its capital structure. The increasing trend in the financial leverage ratio over the years may indicate higher financial risk and leverage.

Overall, Hyatt Hotels Corporation's solvency ratios show a mixed trend, with improvements in some metrics like Debt-to-assets and Debt-to-equity ratios, and fluctuations in others like Debt-to-capital and Financial leverage ratios. It is important for investors and analysts to closely monitor these ratios to assess the company's long-term financial health and risk management practices.

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Coverage ratios

Interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. A higher ratio indicates a stronger ability to cover interest payments.

Hyatt Hotels Corporation's interest coverage ratio has shown significant fluctuations over the past few years. In 2020, the ratio was negative at -6.50, indicating that the company's operating income was insufficient to cover its interest expenses.

However, there has been a marked improvement in the company's interest coverage ratio since then. By the end of 2021, the ratio had increased to 1.27, suggesting a marginal improvement in the company's ability to cover interest expenses.

Subsequently, the interest coverage ratio continued to improve, reaching 3.42 by the end of 2022 and 3.14 by the end of 2023. These numbers indicate a more comfortable position for Hyatt Hotels Corporation in meeting its interest obligations.

The most notable change occurred by the end of 2024, with an interest coverage ratio of 32.45. This signifies a significant improvement in the company's financial health, indicating a strong ability to cover its interest expenses multiple times over.

Overall, the trend in Hyatt Hotels Corporation's interest coverage ratio demonstrates a positive trajectory, reflecting a steady improvement in the company's ability to manage its debt and interest payments over the specified years.