Hyatt Hotels Corporation (H)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,326,000 | 2,687,000 | 2,684,000 | 2,304,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 3,547,000 | 3,697,000 | 3,850,000 | 3,657,000 | 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 |
| Debt-to-capital ratio | 0.48 | 0.42 | 0.41 | 0.39 | 0.39 | 0.46 | 0.45 | 0.40 | 0.40 | 0.48 | 0.51 | 0.52 | 0.53 | 0.45 | 0.51 | 0.51 | 0.48 | 0.47 | 0.42 | 0.30 |
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 fluctuations over the years, ranging from 0.30 to 0.53. The ratio indicates the proportion of the company's capital that is funded by debt. A higher ratio suggests a greater reliance on debt financing, which can increase financial risk.
From March 31, 2020, to December 31, 2024, the debt-to-capital ratio has generally trended upwards, peaking at 0.53 in March 31, 2021, and then showing some fluctuation but remaining relatively stable around 0.40 to 0.48. This may imply that Hyatt has been gradually increasing its debt relative to its capital over the years, potentially indicating a strategic shift towards leveraging debt for growth or operational purposes.
It's important to note that the ideal debt-to-capital ratio can vary depending on the industry, but it is crucial for investors and creditors to monitor this ratio to assess the company's financial health and risk profile. Further analysis of Hyatt's overall financial performance and debt management strategies would provide more insights into the implications of these trends.
Peer comparison
Dec 31, 2024