Hilton Worldwide Holdings Inc (HLT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 16,522,000 | 15,401,000 | 15,512,000 | 15,441,000 | 16,755,000 |
| Operating ROA | 14.34% | 14.45% | 13.50% | 6.54% | -2.49% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,370,000K ÷ $16,522,000K
= 14.34%
Hilton Worldwide Holdings Inc's operating return on assets (operating ROA) has shown significant improvement over the years, indicating the company's ability to generate income from its assets.
- In December 2020, the operating ROA was negative at -2.49%, suggesting that the company's operating income was insufficient to cover the asset base.
- By December 2021, the operating ROA improved to 6.54%, reflecting a turnaround in profitability and asset utilization.
- Subsequently, the operating ROA continued to increase, reaching 13.50% in December 2022, and further improving to 14.45% in December 2023.
- In December 2024, the operating ROA slightly decreased to 14.34%, but still remained at a healthy level, demonstrating the company's efficient management of assets to generate earnings.
Overall, the trend in Hilton Worldwide Holdings Inc's operating ROA indicates an enhanced operational performance and efficient use of assets to drive profitability over the years.
Peer comparison
Dec 31, 2024