Hilton Worldwide Holdings Inc (HLT)

Return on assets (ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	1,141,000	1,322,000	1,292,000	1,249,000	1,255,000	1,074,000	968,000	730,000	410,000	39,000	-281,000	-841,000	-715,000	-316,000	51,000	741,000	881,000	930,000	804,000	761,000
Total assets	US$ in thousands	15,401,000	15,200,000	15,297,000	15,211,000	15,512,000	15,508,000	15,382,000	15,459,000	15,441,000	15,314,000	15,090,000	15,974,000	16,755,000	17,129,000	17,126,000	15,788,000	14,957,000	15,067,000	15,140,000	14,853,000
ROA		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%	5.89%	6.17%	5.31%	5.12%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,141,000K ÷ $15,401,000K
= 7.41%

Hilton Worldwide Holdings Inc's return on assets (ROA) has shown a generally positive trend over the past eight quarters, indicating improved efficiency in generating profits from its assets. In Q4 2023, the ROA stood at 7.41%, which was lower compared to the previous quarter but still above the levels seen in earlier quarters. This suggests that the company's ability to generate earnings from its assets slightly decreased in the most recent quarter.

Despite the slight decline in Q4 2023, the ROA has been relatively strong, consistently above 6% for the past two years. The highest ROA was recorded in Q3 2023 at 8.70%, indicating a peak in asset efficiency during that period. This was followed by a slight decrease in subsequent quarters but remained above 8% until Q1 2023.

Compared to the same quarter of the previous year, the ROA has shown significant improvement, with Q4 2023 demonstrating a notable increase from 8.09% in Q4 2022. This suggests that Hilton Worldwide Holdings Inc has been more effective in utilizing its assets to generate profits in the most recent quarter.

Overall, Hilton Worldwide Holdings Inc's ROA performance indicates a generally positive trend with occasional fluctuations. The company's ability to generate profit from its assets has improved notably compared to the previous year, reflecting favorable efficiency in asset utilization. It will be essential to continue monitoring ROA trends to assess the company's ongoing operational efficiency and profitability.