Hilton Worldwide Holdings Inc (HLT)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	11,043,000	11,217,000	10,906,000	10,499,000	10,235,000	10,008,000	9,717,000	9,323,000	8,773,000	8,175,000	7,564,000	6,642,000	5,788,000	4,873,000	4,027,000	3,245,000	4,307,000	5,754,000	7,246,000	9,181,000
Property, plant and equipment	US$ in thousands	411,000	395,000	378,000	377,000	382,000	305,000	297,000	287,000	280,000	254,000	271,000	290,000	305,000	303,000	318,000	327,000	346,000	349,000	355,000	356,000
Fixed asset turnover		26.87	28.40	28.85	27.85	26.79	32.81	32.72	32.48	31.33	32.19	27.91	22.90	18.98	16.08	12.66	9.92	12.45	16.49	20.41	25.79

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,043,000K ÷ $411,000K
= 26.87

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. For Hilton Worldwide Holdings Inc, the fixed asset turnover ratio has shown a fluctuating trend over the past few years.

From March 31, 2020, to December 31, 2021, the fixed asset turnover ratio decreased steadily from 25.79 to 12.45, indicating a decline in the company's efficiency in utilizing its fixed assets to generate revenue. However, there was a reversal in this trend starting from March 31, 2022. The ratio began to increase gradually and peaked at 32.81 on September 30, 2023.

Subsequently, the fixed asset turnover ratio fluctuated around the 28-32 range between September 30, 2023, and December 31, 2024. This suggests an improvement in Hilton Worldwide Holdings Inc's ability to generate revenue from its fixed assets during this period.

Overall, the company's fixed asset turnover ratio has shown variability over the years, but the recent trend indicates an enhancement in efficiency in utilizing fixed assets to generate revenue. It is essential for stakeholders to monitor this ratio consistently to assess the company's operational performance and asset utilization going forward.