Hyatt Hotels Corporation (H)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 455,000 | 499,000 | 458,000 | 682,000 | 513,000 | 358,000 | 555,000 | 253,000 | 207,000 | 38,000 | -445,000 | -788,000 | -832,000 | -171,000 | 438,000 | 858,000 | 1,081,000 | 702,000 | 553,000 | 549,000 |
| Interest expense (ttm) | US$ in thousands | 145,000 | 139,000 | 136,000 | 143,000 | 150,000 | 156,000 | 158,000 | 162,000 | 163,000 | 164,000 | 159,000 | 152,000 | 128,000 | 104,000 | 88,000 | 73,000 | 75,000 | 77,000 | 77,000 | 76,000 |
| Interest coverage | 3.14 | 3.59 | 3.37 | 4.77 | 3.42 | 2.29 | 3.51 | 1.56 | 1.27 | 0.23 | -2.80 | -5.18 | -6.50 | -1.64 | 4.98 | 11.75 | 14.41 | 9.12 | 7.18 | 7.22 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $455,000K ÷ $145,000K
= 3.14
The interest coverage ratio measures the ability of a company to pay its interest expenses on outstanding debt with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
Based on the data provided, Hyatt Hotels Corporation's interest coverage ratio has been consistently above 1, signaling that the company has generated sufficient EBIT to cover its interest expenses in all quarters. The ratio has shown an improving trend from negative values in Q1 2022 to a high of 5.40 in Q3 2023.
Hyatt Hotels' interest coverage ratio fluctuated over the quarters, with the lowest value of 1.44 in Q2 2022 and the highest value of 5.40 in Q3 2023. The increasing trend in the ratio from Q1 2022 to Q3 2023 reflects the company's enhanced ability to cover its interest expenses with its earnings.
Overall, Hyatt Hotels Corporation's interest coverage ratio demonstrates an improving financial position, indicating that the company has been effective in generating earnings to comfortably meet its interest obligations. It is crucial for stakeholders to continue monitoring this ratio to assess the company's financial stability and debt repayment capacity.
Peer comparison
Dec 31, 2023