Hyatt Hotels Corporation (H)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,305,000 | 2,453,000 | 3,968,000 | 2,984,000 | 1,612,000 |
| Total assets | US$ in thousands | 12,833,000 | 12,312,000 | 12,603,000 | 9,129,000 | 8,417,000 |
| Debt-to-assets ratio | 0.18 | 0.20 | 0.31 | 0.33 | 0.19 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,305,000K ÷ $12,833,000K
= 0.18
The debt-to-assets ratio of Hyatt Hotels Corporation has shown a declining trend over the past five years, decreasing from 0.19 in 2019 to 0.24 in 2023. This indicates that the company has been relying less on debt to finance its assets over the years. A lower debt-to-assets ratio signifies a lower level of financial risk as it suggests that the company has a higher proportion of assets financed through equity rather than debt.
The decreasing trend in the debt-to-assets ratio demonstrates an improvement in the company's overall financial health and stability. It suggests that Hyatt Hotels Corporation has been successful in managing its debt levels and strengthening its balance sheet. Lower debt levels can provide the company with more financial flexibility, reduce interest payments, and increase its ability to weather economic downturns.
However, it is important to assess the debt-to-assets ratio in conjunction with other financial ratios and performance metrics to gain a comprehensive understanding of Hyatt Hotels Corporation's financial position and to make informed investment decisions.
Peer comparison
Dec 31, 2023