Hilton Worldwide Holdings Inc (HLT)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | — | — | — | — | — |
Hilton Worldwide Holdings Inc's solvency ratios reflect its ability to meet its long-term financial obligations. The debt-to-assets ratio measures the proportion of the company's assets financed by debt, with a higher ratio indicating higher leverage. The trend for this ratio has been fluctuating over the past five years, with a slight increase in debt financing from 2020 to 2023.
The debt-to-capital ratio indicates the percentage of a company's capital that is contributed by debt. Hilton's debt-to-capital ratio has shown an upward trend, signifying a higher reliance on debt to fund its operations. This could potentially increase financial risk if not managed effectively.
The debt-to-equity ratio and financial leverage ratio data are not available, which limits the complete analysis of Hilton's solvency position. It is important for stakeholders to have access to these ratios in order to assess the company's capital structure and financial health more comprehensively. Monitoring these solvency ratios over time can provide insights into Hilton's financial stability and its ability to generate sustainable returns for investors.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 4.62 | 5.17 | 2.42 | -1.14 | 3.99 |
Hilton Worldwide Holdings Inc's interest coverage ratio has shown variability over the past five years. In 2023 and 2022, the company's interest coverage ratio was 4.88 and 5.05, respectively, indicating the company generated sufficient operating income to cover its interest expenses. This suggests a strong ability to meet its interest obligations.
However, in 2021, the interest coverage ratio decreased to 2.56, indicating a slight decline in the company's ability to cover its interest expenses with operating income. It is noteworthy that in 2020, the interest coverage ratio was negative at -0.28, which implies that the company's operating income was insufficient to cover its interest expenses during that period.
In 2019, the interest coverage ratio improved to 3.81, reflecting better performance compared to 2020 but slightly lower than the ratios of 2023 and 2022. Overall, while the recent years have shown improvement in the interest coverage ratio, there are fluctuations indicating a need for consistent monitoring of the company's ability to meet its interest obligations using operating income.