Hyatt Hotels Corporation (H)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,758,000 | 4,103,000 | 2,507,000 | 896,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 180,000 | 168,000 | 159,000 | 150,000 | 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 |
| Interest coverage | 26.43 | 24.42 | 15.77 | 5.97 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,758,000K ÷ $180,000K
= 26.43
The interest coverage ratio of Hyatt Hotels Corporation has fluctuated over the period provided. It is a measure of the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). In March 2020, Hyatt had an interest coverage ratio of 11.75, indicating that it was able to cover its interest expenses almost 12 times over.
However, the ratio declined significantly in the following quarters, dropping to a low of -6.50 by December 2020, indicating that the company's EBIT was not sufficient to cover its interest expenses. This negative ratio suggests financial distress and a potential inability to meet debt obligations.
Subsequently, Hyatt's interest coverage slowly improved, reaching a positive ratio of 3.42 by December 2022. This indicates that the company's ability to cover its interest expenses had strengthened. The trend continued to improve, with the interest coverage ratio reaching 26.43 by December 2024, a significant improvement from the previous periods.
Overall, the trend in interest coverage for Hyatt Hotels Corporation shows significant volatility and fluctuations, with periods of financial strain followed by improvement. It is essential for investors and stakeholders to closely monitor the company's ability to generate sufficient earnings to cover its interest expenses effectively.
Peer comparison
Dec 31, 2024