Hyatt Hotels Corporation (H)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 13,324,000 12,833,000 12,312,000 12,603,000 9,129,000
Total stockholders’ equity US$ in thousands 3,547,000 3,564,000 3,699,000 3,563,000 3,211,000
Financial leverage ratio 3.76 3.60 3.33 3.54 2.84

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,324,000K ÷ $3,547,000K
= 3.76

The financial leverage ratio of Hyatt Hotels Corporation has shown an increasing trend from 2.84 in December 31, 2020, to 3.76 in December 31, 2024. This indicates that the company is relying more on debt financing compared to equity over the years. A higher financial leverage ratio suggests that the company is more leveraged and potentially carries higher financial risk. It is important for investors and stakeholders to monitor this ratio closely to assess the company's ability to manage its debt levels and financial obligations effectively.