Hyatt Hotels Corporation (H)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,326,000 | 2,305,000 | 2,453,000 | 3,968,000 | 2,984,000 |
| Total stockholders’ equity | US$ in thousands | 3,547,000 | 3,564,000 | 3,699,000 | 3,563,000 | 3,211,000 |
| Debt-to-capital ratio | 0.48 | 0.39 | 0.40 | 0.53 | 0.48 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,326,000K ÷ ($3,326,000K + $3,547,000K)
= 0.48
The debt-to-capital ratio of Hyatt Hotels Corporation has shown some fluctuations over the years. As of December 31, 2020, the ratio was 0.48, indicating that 48% of the company's capital structure was financed by debt. By December 31, 2021, the ratio had increased to 0.53, suggesting a higher reliance on debt for financing. However, there was a notable improvement by December 31, 2022, as the ratio decreased to 0.40, indicating a more balanced capital structure.
The trend continued positively in the following years, with the ratio further dropping to 0.39 by December 31, 2023, reflecting efficient debt management. However, by December 31, 2024, the ratio had increased again to 0.48, returning to the level seen in 2020.
Overall, the debt-to-capital ratio of Hyatt Hotels Corporation has displayed variability but, on average, has remained within an acceptable range. Efforts to maintain a balanced capital structure and manage debt effectively appear to have been successful, as evidenced by the improvements seen in recent years.
Peer comparison
Dec 31, 2024