Hyatt Hotels Corporation (H)

Solvency ratios

	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
Debt-to-assets ratio	0.18	0.25	0.24	0.19	0.20	0.25	0.30	0.30	0.31	0.31	0.33	0.34	0.33	0.32	0.29	0.19	0.19	0.20	0.20	0.20
Debt-to-capital ratio	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	0.29	0.30	0.31	0.31
Debt-to-equity ratio	0.65	0.85	0.83	0.66	0.66	0.91	1.05	1.08	1.11	0.83	1.03	1.03	0.93	0.89	0.71	0.43	0.41	0.43	0.45	0.45
Financial leverage ratio	3.60	3.43	3.42	3.42	3.33	3.60	3.51	3.60	3.54	2.64	3.08	3.04	2.84	2.75	2.46	2.24	2.12	2.16	2.22	2.22

The solvency ratios of Hyatt Hotels Corporation provide insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio remained relatively stable around 0.25 in the most recent quarters, indicating that 25% of the company's assets are financed by debt. This suggests that Hyatt has a good level of asset coverage for its debt obligations.

The debt-to-capital and debt-to-equity ratios also showed consistency, hovering around 0.46 and 0.85, respectively. These ratios indicate that approximately 46% of the company's capital and 85% of its equity are financed by debt. While these ratios are reasonable, they suggest a moderate level of financial leverage for the company.

Moreover, the financial leverage ratio, which measures the company's total assets relative to its equity, decreased in Q3 and Q4 of 2023 compared to the same periods in the previous year. This implies that Hyatt's reliance on debt as a source of financing has decreased, leading to a lower financial leverage ratio. Overall, the solvency ratios suggest that Hyatt Hotels Corporation is managing its debt levels effectively and maintaining a healthy balance between debt and equity financing.

Coverage ratios

	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
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

The interest coverage ratio is used to assess a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a greater capacity to cover interest expenses.

Based on the data provided for Hyatt Hotels Corporation over the past eight quarters, we observe fluctuations in the interest coverage ratio. The trend shows an overall improvement in the company's ability to cover its interest expenses, with the ratio increasing from 3.00 in Q3 2022 to 5.40 in Q3 2023. This indicates that the company has been generating sufficient earnings to cover its interest obligations, which is a positive sign of financial health.

However, it is important to note that in Q1 2022 and Q2 2022, the interest coverage ratio was relatively low, at 1.44 and -0.85, respectively. A ratio below 1 suggests that the company's earnings were not sufficient to cover its interest expenses during these periods, which could be a cause for concern.

In conclusion, while Hyatt Hotels Corporation has shown an improvement in its interest coverage ratio over the past year, there have been fluctuations in performance that may warrant further investigation to understand the underlying factors contributing to these variations.