Hilton Worldwide Holdings Inc (HLT)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	10,235,000	8,773,000	5,788,000	4,307,000	9,452,000
Property, plant and equipment	US$ in thousands	382,000	280,000	305,000	346,000	380,000
Fixed asset turnover		26.79	31.33	18.98	12.45	24.87

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,235,000K ÷ $382,000K
= 26.79

Hilton Worldwide Holdings Inc's fixed asset turnover has shown fluctuations over the past five years. The ratio was relatively high in 2022 at 31.33, indicating that the company generated $31.33 in sales for every dollar invested in fixed assets. This suggests efficient utilization of fixed assets to generate revenue.

In 2023, the fixed asset turnover decreased to 26.79, indicating a slight decline in the efficiency of generating sales from fixed assets compared to the previous year. Despite this decrease, the ratio remains relatively high, signifying effective asset management.

In 2021, the fixed asset turnover was 18.98, showing a noticeable decrease from the previous year. This could imply either increased investment in fixed assets without a proportional increase in sales or a decrease in sales relative to fixed assets.

In 2020 and 2019, the fixed asset turnover was 12.45 and 24.87, respectively. The ratio was notably low in 2020, suggesting a potential inefficiency in utilizing fixed assets to drive sales. However, in 2019, the ratio improved significantly, indicating better utilization of fixed assets compared to 2020.

Overall, Hilton Worldwide Holdings Inc's fixed asset turnover has experienced fluctuations over the past five years, with some years showing more efficient asset utilization than others. It is essential for the company to monitor and assess its asset management strategies to ensure optimal utilization of fixed assets in generating revenue.