Hilton Worldwide Holdings Inc (HLT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 94.21% | 93.80% | 89.75% | 78.15% | 91.67% |
| Operating profit margin | 21.74% | 23.87% | 17.45% | -9.71% | 17.53% |
| Pretax margin | 16.43% | 19.74% | 9.73% | -21.34% | 13.11% |
| Net profit margin | 11.15% | 14.31% | 7.08% | -16.60% | 9.32% |
Hilton Worldwide Holdings Inc has shown consistent improvement in profitability ratios over the past five years. The gross profit margin has remained high and relatively stable, indicating efficient operations and effective cost management. The company's operating profit margin has fluctuated but generally improved, reaching a peak in 2022 before a slight decline in 2023. This suggests better control over operating expenses and increased operating efficiency.
The pretax margin has shown a significant turnaround, shifting from negative in 2020 to positive in the following years, indicating improved overall financial performance and better management of pre-tax expenses. Similarly, the net profit margin has also seen a remarkable recovery, moving from negative in 2020 to double-digit positive percentages in recent years. This reflects enhanced profitability and effective cost control measures implemented by the company.
Overall, Hilton Worldwide Holdings Inc has demonstrated a positive trend in profitability ratios, showcasing improved operational efficiency and financial performance over the past five years. However, it is vital for the company to maintain this positive momentum and continue to focus on sustainable growth strategies to ensure long-term profitability and shareholder value.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.45% | 13.50% | 6.54% | -2.49% | 11.08% |
| Return on assets (ROA) | 7.41% | 8.09% | 2.66% | -4.27% | 5.89% |
| Return on total capital | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — |
Hilton Worldwide Holdings Inc has shown a consistent improvement in its profitability ratios over the past five years. The Operating return on assets (Operating ROA) increased from 10.54% in 2019 to 14.69% in 2023, indicating that the company is generating more operating income from its assets. This suggests better operational efficiency and management effectiveness.
The Return on assets (ROA) also demonstrated an upward trend from -4.27% in 2020 to 7.41% in 2023, reflecting an improvement in the company's ability to generate profits from its total assets. This indicates that Hilton is becoming more profitable and efficient in its asset utilization.
The Return on total capital has significantly increased from -1.32% in 2020 to 33.10% in 2023, highlighting the company's ability to generate higher returns relative to its total capital employed. This suggests that Hilton is effectively utilizing its capital to generate profits for its stakeholders.
Unfortunately, data for Return on equity (ROE) is missing, so we cannot provide an analysis of the company's profitability specifically concerning equity shareholders. However, based on the trends in the other profitability ratios, it can be inferred that Hilton Worldwide Holdings Inc is improving its overall profitability and efficiency, which bodes well for its financial health and future prospects.