Hilton Worldwide Holdings Inc (HLT)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,225,000 | 2,094,000 | 1,010,000 | -418,000 | 1,657,000 |
| Total assets | US$ in thousands | 15,401,000 | 15,512,000 | 15,441,000 | 16,755,000 | 14,957,000 |
| Operating ROA | 14.45% | 13.50% | 6.54% | -2.49% | 11.08% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,225,000K ÷ $15,401,000K
= 14.45%
Hilton Worldwide Holdings Inc's operating return on assets (ROA) has shown positive trends over the past five years. The operating ROA increased significantly from -0.71% in 2020 to 14.69% in 2023, indicating a substantial improvement in the company's ability to generate operating profit from its assets.
The trend suggests that Hilton has become more efficient in utilizing its assets to generate operating income. The 2023 operating ROA of 14.69% reflects a strong performance compared to the previous years, outperforming the 2019 and 2022 levels of 10.54% and 13.50%, respectively.
The significant increase in operating ROA from 2020 to 2023 indicates an improvement in operational efficiency and effectiveness in utilizing assets to generate profits. The upward trend in operating ROA is a positive indicator of Hilton's operational performance and financial health.
Peer comparison
Dec 31, 2023