Hilton Worldwide Holdings Inc (HLT)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,370,000 | 2,225,000 | 2,094,000 | 1,010,000 | -418,000 |
| Revenue | US$ in thousands | 11,174,000 | 10,235,000 | 8,773,000 | 5,788,000 | 4,307,000 |
| Operating profit margin | 21.21% | 21.74% | 23.87% | 17.45% | -9.71% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $2,370,000K ÷ $11,174,000K
= 21.21%
Based on the data provided, Hilton Worldwide Holdings Inc's operating profit margin has shown a significant improvement over the years. As of December 31, 2020, the operating profit margin was negative at -9.71%, indicating that the company's operating expenses were higher than its operating income.
However, by December 31, 2021, the operating profit margin had turned positive at 17.45%, signifying that Hilton was able to generate a profit from its core operations. The subsequent years saw further growth in the operating profit margin, reaching 23.87% by December 31, 2022, 21.74% by December 31, 2023, and 21.21% by December 31, 2024.
This positive trend in the operating profit margin reflects improvements in Hilton's operational efficiency and cost management. A higher operating profit margin indicates that the company is effectively managing its operating expenses relative to its revenue, which can lead to increased profitability and overall financial health.
Peer comparison
Dec 31, 2024