Hyatt Hotels Corporation (H)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 3,564,000 | 3,699,000 | 3,563,000 | 3,211,000 | 3,962,000 |
| Debt-to-capital ratio | 0.39 | 0.40 | 0.53 | 0.48 | 0.29 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,305,000K ÷ ($2,305,000K + $3,564,000K)
= 0.39
The debt-to-capital ratio for Hyatt Hotels Corporation has remained relatively stable over the past five years, ranging from 0.29 to 0.53. A lower ratio indicates a lower level of debt relative to the company's total capital, while a higher ratio suggests a higher proportion of debt in the capital structure.
In 2019, the company had a relatively low debt-to-capital ratio of 0.29, indicating a conservative approach towards debt financing. Subsequently, there was an increase in the ratio in 2020, reaching 0.50, which may suggest an increase in debt relative to capital employed during that period.
In 2021, the debt-to-capital ratio peaked at 0.53, indicating a significant reliance on debt funding. However, this ratio decreased slightly in 2022 and remained constant in 2023 at 0.46, reflecting a moderation in the company's debt position relative to capital in recent years.
Overall, Hyatt Hotels Corporation has maintained a moderate level of debt in its capital structure, with fluctuations over the past five years. Investors and stakeholders should monitor this ratio to assess the company's leverage and financial risk.
Peer comparison
Dec 31, 2023