Hilton Worldwide Holdings Inc (HLT)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,146,000	2,269,000	2,244,000	2,180,000	2,147,000	1,960,000	1,765,000	1,382,000	960,000	394,000	-41,000	-583,000	-396,000	773,000	1,031,000	1,603,000	1,653,000	996,000	866,000	837,000
Interest expense (ttm)	US$ in thousands	464,000	460,000	453,000	441,000	415,000	390,000	382,000	384,000	397,000	415,000	433,000	438,000	429,000	426,000	415,000	410,000	414,000	398,000	392,000	386,000
Interest coverage		4.62	4.93	4.95	4.94	5.17	5.03	4.62	3.60	2.42	0.95	-0.09	-1.33	-0.92	1.81	2.48	3.91	3.99	2.50	2.21	2.17

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,146,000K ÷ $464,000K
= 4.62

Hilton Worldwide Holdings Inc's interest coverage ratio has been relatively stable over the past eight quarters, ranging from 3.61 to 5.08. The interest coverage ratio measures the company's ability to pay interest expenses on its outstanding debt with its operating income.

The trend indicates that Hilton has consistently generated sufficient operating income to cover its interest expenses, with a peak of 5.08 in Q2 2023 and a low of 3.61 in Q1 2022. This suggests that the company has a healthy ability to service its debt obligations and indicates a lower risk of financial distress due to interest payments.

Overall, the interest coverage ratios for Hilton Worldwide Holdings Inc demonstrate a consistent and strong financial position in terms of meeting its interest payment obligations.