Hilton Worldwide Holdings Inc (HLT)

Debt-to-capital ratio

		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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	-2,360,000	-1,763,000	-1,431,000	-1,420,000	-1,102,000	-913,000	-789,000	-698,000	-821,000	-1,128,000	-1,417,000	-1,623,000	-1,490,000	-1,324,000	-1,299,000	-914,000	-482,000	-208,000	-30,000	100,000
Debt-to-capital ratio		—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $-2,360,000K)
= —

The debt-to-capital ratio of Hilton Worldwide Holdings Inc has shown a general increasing trend over the past eight quarters, starting from 1.09 in Q1 2022 and reaching 1.35 in Q4 2023. This indicates that the company's reliance on debt to finance its operations and growth has been gradually rising.

The higher debt-to-capital ratio implies that Hilton's proportion of debt in relation to its total capital (debt plus equity) has been increasing. This could suggest that the company is taking on more debt obligations compared to its equity, which might result in higher interest payments and financial risk.

While having some level of debt can be beneficial for leveraging growth opportunities, a consistently rising debt-to-capital ratio could raise concerns about the company's ability to manage its debt levels effectively and meet its financial obligations in the long term. It is important for investors and stakeholders to closely monitor Hilton's debt levels and financial health to assess the associated risks.