Hilton Worldwide Holdings Inc (HLT)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 10,613,000 | 9,642,000 | 8,229,000 | 5,195,000 | 3,366,000 |
| Revenue | US$ in thousands | 11,174,000 | 10,235,000 | 8,773,000 | 5,788,000 | 4,307,000 |
| Gross profit margin | 94.98% | 94.21% | 93.80% | 89.75% | 78.15% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $10,613,000K ÷ $11,174,000K
= 94.98%
Hilton Worldwide Holdings Inc has demonstrated a consistent improvement in its gross profit margin over the past five years. Starting from 78.15% as of December 31, 2020, the company's gross profit margin increased to 89.75% by December 31, 2021. This growth trend continued as the margin further improved to 93.80% by the end of 2022, reaching 94.21% by the end of 2023, and peaking at 94.98% by December 31, 2024.
The steady rise in the gross profit margin indicates that Hilton Worldwide Holdings Inc has been effectively managing its cost of goods sold relative to its revenue generation. This improvement suggests operational efficiency and possibly better pricing strategies or cost controls within the company.
Overall, the consistent increase in the gross profit margin reflects positively on Hilton Worldwide Holdings Inc's ability to generate higher profits from its core business activities and may indicate a strengthening competitive position within the market.
Peer comparison
Dec 31, 2024