Hilton Worldwide Holdings Inc (HLT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 94.98% | 94.21% | 93.80% | 89.75% | 78.15% |
| Operating profit margin | 21.21% | 21.74% | 23.87% | 17.45% | -9.71% |
| Pretax margin | 15.92% | 16.43% | 19.74% | 9.73% | -21.34% |
| Net profit margin | 13.74% | 11.15% | 14.31% | 7.08% | -16.60% |
Hilton Worldwide Holdings Inc has shown a strong improvement in its profitability ratios over the years. The gross profit margin has steadily increased from 78.15% in 2020 to 94.98% in 2024, indicating the company's ability to efficiently manage its production costs and generate more profit on its revenue.
Similarly, the operating profit margin has shown a significant turnaround from a negative -9.71% in 2020 to 21.21% in 2024, indicating better operational efficiency and cost management. The pretax margin and net profit margin have also shown consistent improvement over the years, with pretax margin increasing from -21.34% in 2020 to 15.92% in 2024, and net profit margin increasing from -16.60% in 2020 to 13.74% in 2024.
These improvements in profitability ratios suggest that Hilton Worldwide Holdings Inc has been able to enhance its overall profitability and financial performance through effective cost controls, revenue management, and operational efficiency initiatives.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.34% | 14.45% | 13.50% | 6.54% | -2.49% |
| Return on assets (ROA) | 9.29% | 7.41% | 8.09% | 2.66% | -4.27% |
| Return on total capital | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — |
Profitability Ratios Analysis for Hilton Worldwide Holdings Inc:
1. Operating Return on Assets (Operating ROA):
- Hilton's Operating ROA has shown an improvement over the years, increasing from -2.49% in 2020 to 14.34% in 2024. This indicates that the company has been able to generate higher operating profits from its assets.
2. Return on Assets (ROA):
- The ROA metric also reflects a positive trend, starting from -4.27% in 2020 and reaching 9.29% in 2024. Hilton has been effectively utilizing its assets to generate profits for its shareholders.
3. Return on Total Capital:
- Data for Return on Total Capital is not provided in the given information. This ratio could provide insights into how efficiently the company is utilizing all its capital resources to generate returns.
4. Return on Equity (ROE):
- Information on Return on Equity is not available for Hilton in the provided data. ROE is a key profitability ratio that measures the return earned on shareholders' equity, reflecting how well the company is utilizing investors' funds to generate profits.
Overall, Hilton Worldwide Holdings Inc has shown a positive trend in its profitability ratios over the years, indicating improved operational efficiency and effective utilization of assets to generate returns for its stakeholders. However, further analysis incorporating Return on Total Capital and ROE would provide a more comprehensive view of the company's overall profitability performance.