Hilton Worldwide Holdings Inc (HLT)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — |
| Debt-to-equity ratio | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — |
Based on the provided data, Hilton Worldwide Holdings Inc has consistently maintained a Debt-to-assets ratio of 0.00 over the five-year period from 2020 to 2024. This indicates that the company has not relied on debt to finance its assets during this period, showing a strong financial position in terms of solvency.
Similarly, the Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio have not been provided or calculated for Hilton Worldwide Holdings Inc from 2020 to 2024.
The consistent Debt-to-assets ratio of 0.00 implies that the company's assets have been predominantly financed through equity or other non-debt sources. This suggests that Hilton Worldwide Holdings Inc has a low financial risk and good solvency position, as it is not burdened by a high level of debt relative to its asset base.
Overall, based on the available solvency ratios, Hilton Worldwide Holdings Inc appears to have a healthy financial structure with limited reliance on debt, indicating a strong ability to meet its financial obligations in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.13 | 4.62 | 5.17 | 2.42 | -1.14 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. Hilton Worldwide Holdings Inc's interest coverage has shown improvement over the years based on the data provided.
As of December 31, 2020, the interest coverage ratio was negative at -1.14, which may indicate that the company had difficulty covering its interest expenses with its operating income during that period.
However, there was a significant turnaround in the following years. By December 31, 2021, the interest coverage ratio improved to 2.42, indicating that the company's operating income was more than sufficient to cover its interest expenses. This trend continued to improve over the next few years, reaching 5.17 by December 31, 2022, 4.62 by December 31, 2023, and 4.13 by December 31, 2024.
Overall, the increasing trend in the interest coverage ratio demonstrates Hilton Worldwide Holdings Inc's strengthening financial position and ability to comfortably meet its interest obligations with its operating income.