Hyatt Hotels Corporation (H)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	5,841,000	455,000	513,000	207,000	-832,000
Interest expense	US$ in thousands	180,000	145,000	150,000	163,000	128,000
Interest coverage		32.45	3.14	3.42	1.27	-6.50

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $5,841,000K ÷ $180,000K
= 32.45

To analyze the interest coverage of Hyatt Hotels Corporation, we can look at the trend over the years based on the provided data:

1. December 31, 2020: -6.50
- The negative value indicates that the company's operating income was insufficient to cover its interest expenses, suggesting potential financial distress.

2. December 31, 2021: 1.27
- The interest coverage improved from the previous year but remained relatively low, indicating that the company may still have challenges meeting its interest obligations comfortably.

3. December 31, 2022: 3.42
- There was a further improvement in the interest coverage ratio, suggesting that the company's operating income was better able to cover its interest expenses compared to the previous year.

4. December 31, 2023: 3.14
- The interest coverage ratio slightly decreased from the previous year but remained at a level indicating the company's ability to meet its interest payments from its operating income.

5. December 31, 2024: 32.45
- A significant increase in the interest coverage ratio, reaching a high value, indicates that the company's operating income substantially exceeds its interest expenses, reflecting improved financial stability and ability to service debt obligations.

Overall, the trend shows that Hyatt Hotels Corporation experienced fluctuations in its interest coverage over the years, with a notable improvement in recent years, culminating in a robust interest coverage ratio in 2024, indicating a stronger ability to meet its interest payments from operating earnings.