Hilton Worldwide Holdings Inc (HLT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 94.92% | 94.60% | 94.46% | 94.24% | 94.21% | 94.54% | 94.42% | 94.24% | 93.80% | 93.17% | 92.35% | 91.27% | 89.75% | 84.05% | 80.41% | 73.84% | 77.62% | 83.80% | 86.75% | 89.60% |
| Operating profit margin | 21.46% | 20.34% | 21.19% | 21.53% | 21.74% | 23.27% | 23.66% | 23.84% | 23.87% | 23.52% | 22.90% | 20.45% | 17.45% | 9.89% | 1.51% | -14.33% | -9.71% | 2.17% | 8.74% | 15.39% |
| Pretax margin | 16.11% | 15.28% | 16.22% | 16.62% | 16.43% | 18.08% | 18.43% | 18.65% | 19.74% | 19.20% | 18.28% | 15.03% | 9.73% | -0.43% | -11.77% | -31.46% | -19.15% | 6.03% | 8.50% | 12.99% |
| Net profit margin | 13.90% | 10.49% | 11.09% | 11.43% | 11.15% | 13.21% | 13.30% | 13.40% | 14.31% | 13.14% | 12.80% | 10.99% | 7.08% | 0.80% | -6.98% | -25.92% | -16.60% | -5.49% | 0.70% | 8.07% |
Based on the provided data, we can analyze the profitability ratios of Hilton Worldwide Holdings Inc over time:
1. Gross Profit Margin:
Hilton's gross profit margin has been consistently high, ranging from 89.60% on March 31, 2020, to 94.92% on December 31, 2024. This indicates that Hilton has been able to effectively manage its cost of goods sold and generate a significant profit on its products and services.
2. Operating Profit Margin:
The operating profit margin for Hilton has shown fluctuation over the years, with negative margins in late 2020 and early 2021 but steadily improved thereafter. The margin increased from -9.71% on December 31, 2020, to 21.46% on December 31, 2024, indicating efficient cost management and improved operational efficiency.
3. Pretax Margin:
Hilton's pretax margin also experienced volatility, with negative margins in late 2020 and early 2021, followed by a consistent improvement. The margin improved from -31.46% on March 31, 2021, to 16.11% on December 31, 2024. This indicates better control over expenses and stronger performance in generating income before taxes.
4. Net Profit Margin:
The net profit margin of Hilton showed a similar pattern to the operating and pretax margins, with negative margins in late 2020 and early 2021, followed by a gradual increase. The margin improved from -25.92% on March 31, 2021, to 13.90% on December 31, 2024, highlighting Hilton's ability to increase profitability after facing challenging times.
Overall, the improving trend in all profitability ratios reflects Hilton Worldwide Holdings Inc's efforts to enhance operational efficiency, control costs, and generate higher profits over the analyzed period. It suggests sound financial management and a positive outlook for the company's profitability in the future.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.34% | 13.67% | 14.69% | 14.19% | 14.45% | 15.32% | 15.03% | 14.61% | 13.50% | 12.40% | 11.26% | 8.78% | 6.54% | 3.15% | 0.40% | -2.91% | -2.49% | 0.73% | 3.70% | 8.95% |
| Return on assets (ROA) | 9.29% | 7.05% | 7.69% | 7.53% | 7.41% | 8.70% | 8.45% | 8.21% | 8.09% | 6.93% | 6.29% | 4.72% | 2.66% | 0.25% | -1.86% | -5.26% | -4.27% | -1.84% | 0.30% | 4.69% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Hilton Worldwide Holdings Inc's profitability ratios based on the provided data show a positive trend in operating return on assets (Operating ROA) from 8.95% on March 31, 2020, to 14.34% on December 31, 2024. This indicates that the company is efficiently generating profits from its assets over the period analyzed.
Similarly, the return on assets (ROA) also demonstrates improvement, starting at 4.69% on March 31, 2020, and reaching 9.29% on December 31, 2024. ROA measures the company's ability to generate earnings from its total assets, and the upward trend suggests effective asset utilization and profitability growth.
Return on total capital and return on equity (ROE) data were not provided, making it difficult to assess the company's performance in terms of capital and shareholder equity efficiency. These ratios are essential indicators of how well the company is utilizing its total capital and shareholders' investments to generate profits.
Overall, Hilton Worldwide Holdings Inc's profitability ratios, particularly Operating ROA and ROA, have shown positive growth over the analyzed period, reflecting improving profitability and operational efficiency. However, more information on return on total capital and ROE would provide a more comprehensive understanding of the company's overall financial performance.
See also:
Hilton Worldwide Holdings Inc Profitability Ratios (Quarterly Data)