Hilton Worldwide Holdings Inc (HLT)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,174,000 | 10,235,000 | 8,773,000 | 5,788,000 | 4,307,000 |
| Property, plant and equipment | US$ in thousands | 411,000 | 382,000 | 280,000 | 305,000 | 346,000 |
| Fixed asset turnover | 27.19 | 26.79 | 31.33 | 18.98 | 12.45 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,174,000K ÷ $411,000K
= 27.19
The fixed asset turnover ratio for Hilton Worldwide Holdings Inc has shown a positive trend over the past five years. Starting at 12.45 in 2020, the ratio increased to 18.98 in 2021, further rose to 31.33 in 2022, and then decreased slightly to 26.79 in 2023. In the most recent year, 2024, the fixed asset turnover ratio improved to 27.19.
This upward trend indicates that Hilton Worldwide is utilizing its fixed assets more efficiently to generate revenue. The significant increase in the ratio from 2020 to 2022 suggests that the company has been able to generate more sales relative to its investment in fixed assets during this period. Although there was a slight decline in 2023, the ratio remained relatively high in 2024, signifying continued efficiency in asset utilization.
Overall, the trend in Hilton Worldwide's fixed asset turnover ratio indicates effective management of its fixed assets to drive revenue generation over the years.
Peer comparison
Dec 31, 2024