Hilton Worldwide Holdings Inc (HLT)
Total 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 |
| Total assets | US$ in thousands | 15,401,000 | 15,512,000 | 15,441,000 | 16,755,000 | 14,957,000 |
| Total asset turnover | 0.66 | 0.57 | 0.37 | 0.26 | 0.63 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $10,235,000K ÷ $15,401,000K
= 0.66
Hilton Worldwide Holdings Inc's total asset turnover has shown fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its assets to generate revenue.
In 2023, the total asset turnover was 0.66, representing an improvement from the previous year's ratio of 0.57. This suggests that Hilton generated $0.66 in revenue for every $1 of assets it held. The increase in this ratio indicates that Hilton made better use of its assets to drive revenue in 2023 compared to 2022.
Looking further back, the trend in total asset turnover shows variability. In 2021 the ratio was 0.37, significantly lower than in 2022 and 2023. This indicates that Hilton may have faced challenges in efficiently utilizing its assets to generate revenue in 2021.
In 2020, the total asset turnover was 0.26, showing a substantial increase from 2019 when the ratio was 0.63. The significant improvement in 2020 suggests that Hilton managed to enhance its asset utilization efficiency from the previous year.
Overall, the fluctuations in Hilton's total asset turnover indicate variations in the company's ability to generate revenue relative to its asset base. It is important for Hilton to continue monitoring and improving this ratio to ensure optimal asset utilization and maintain financial performance.
Peer comparison
Dec 31, 2023