Hyatt Hotels Corporation (H)

Based on the provided data, we can analyze the solvency ratios of Hyatt Hotels Corporation over the years.

1. Debt-to-Assets Ratio:
- The Debt-to-Assets ratio measures the proportion of the company's assets financed by debt. Hyatt Hotels Corporation has maintained a relatively low Debt-to-Assets ratio, ranging from 0.19 to 0.34 during the period under review. This indicates that the company has a strong ability to cover its liabilities with its assets.

2. Debt-to-Capital Ratio:
- The Debt-to-Capital ratio reflects the proportion of debt in the company's capital structure. The ratio for Hyatt Hotels Corporation has shown fluctuations between 0.30 and 0.53. The increasing trend in this ratio suggests a higher reliance on debt financing over the years.

3. Debt-to-Equity Ratio:
- The Debt-to-Equity ratio compares the total debt of the company to its shareholders' equity. Hyatt Hotels Corporation's Debt-to-Equity ratio has varied between 0.43 and 1.11 during the period examined. The ratio trending upwards indicates a growing level of financial risk associated with higher debt levels compared to equity.

4. Financial Leverage Ratio:
- The Financial Leverage ratio measures the company's ability to meet its financial obligations. Hyatt Hotels Corporation's Financial Leverage ratio has fluctuated between 2.24 and 3.76. An increasing trend in this ratio indicates higher financial risk due to higher debt levels and interest expenses.

In conclusion, while Hyatt Hotels Corporation has maintained a relatively low Debt-to-Assets ratio, the increasing trends in the Debt-to-Capital, Debt-to-Equity, and Financial Leverage ratios suggest a higher reliance on debt financing and increased financial risk over the years. It is important for stakeholders to closely monitor these solvency ratios to assess the company's financial health and ability to meet its obligations effectively.

---

Coverage ratios

The interest coverage ratio is a financial metric used to assess a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a company's better ability to handle its interest expense.

Based on the provided data for Hyatt Hotels Corporation, the interest coverage ratio fluctuated significantly over the reporting periods. It stood at 11.75 as of March 31, 2020, indicating that the company generated sufficient operating income to cover its interest payments almost 12 times over. However, the ratio decreased to below 1.0 from September 30, 2020, to March 31, 2021, which implies that the company's operating income was insufficient to cover its interest expenses during those periods.

The interest coverage ratio started to improve from June 30, 2021, onwards, indicating that the company's ability to cover interest payments began to strengthen. By June 30, 2024, the interest coverage ratio had significantly increased to 15.77, and further rose to 26.43 as of December 31, 2024. This upward trend suggests that Hyatt Hotels Corporation was generating more operating income relative to its interest expenses, reflecting a healthier financial position and reduced financial risk in meeting its debt obligations.

Overall, the analysis indicates that Hyatt Hotels Corporation experienced fluctuations in its interest coverage ratio over the reporting periods but managed to improve its position by enhancing its operating performance and managing its debt effectively, as evidenced by the significant increase in the interest coverage ratio in the later periods.