Hilton Worldwide Holdings Inc (HLT)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,682,000 | 1,732,000 | 563,000 | -919,000 | 1,239,000 |
| Revenue | US$ in thousands | 10,235,000 | 8,773,000 | 5,788,000 | 4,307,000 | 9,452,000 |
| Pretax margin | 16.43% | 19.74% | 9.73% | -21.34% | 13.11% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,682,000K ÷ $10,235,000K
= 16.43%
Over the past five years, Hilton Worldwide Holdings Inc pretax margin has demonstrated significant fluctuations. In 2019, the company had a pretax margin of 13.16%, showing a reasonably healthy profitability level. However, in 2020, the pretax margin significantly deteriorated to -21.45%, indicating that the company was operating at a loss before taxes due to various challenges or exceptional circumstances during that period, such as the impact of the COVID-19 pandemic on the hospitality industry.
The subsequent recovery was evident in 2021 when Hilton's pretax margin improved to 9.68%, suggesting the company managed to partially offset the prior year's losses and move back into a positive pretax profitability zone. In 2022, the pretax margin experienced a further increase to 19.77%, demonstrating a strong rebound and enhanced profitability performance by Hilton.
The most recent data from December 31, 2023, shows a pretax margin of 16.53%, which, although lower than the previous year, still indicates a healthy level of profitability for the company. Overall, the trend in Hilton's pretax margin over the past five years reflects a rollercoaster ride from profitability to significant losses and subsequent recovery, ultimately indicating the challenges and resilience in the company's financial performance.
Peer comparison
Dec 31, 2023