Hilton Worldwide Holdings Inc (HLT)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,779,000 | 1,682,000 | 1,732,000 | 563,000 | -919,000 |
| Revenue | US$ in thousands | 11,174,000 | 10,235,000 | 8,773,000 | 5,788,000 | 4,307,000 |
| Pretax margin | 15.92% | 16.43% | 19.74% | 9.73% | -21.34% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,779,000K ÷ $11,174,000K
= 15.92%
The pretax margin of Hilton Worldwide Holdings Inc has shown a significant improvement over the years, reflecting the company's ability to efficiently manage its expenses and generate more profit before taxes for each dollar of revenue.
In 2020, the pretax margin was negative at -21.34%, indicating that the company incurred more expenses than it generated in pre-tax income. However, by the end of 2021, the pretax margin had turned positive, reaching 9.73%, signaling a notable improvement in the company's cost control and operational efficiency.
Subsequently, in 2022, the pretax margin increased further to 19.74%, highlighting Hilton's continued efforts to enhance its profitability and streamline its operations. Although there was a slight decrease in the pretax margin in 2023 to 16.43%, the company still managed to sustain a healthy level of pre-tax profitability.
By the end of 2024, Hilton's pretax margin remained strong at 15.92%, indicating a stable performance and ongoing focus on maximizing profitability. Overall, the trend in Hilton Worldwide Holdings Inc's pretax margin demonstrates a positive trajectory, showcasing the company's effective management of costs and ability to generate earnings before taxes.
Peer comparison
Dec 31, 2024