Hilton Worldwide Holdings Inc. (NYSE:HLT)

The analysis of the financial data reveals significant fluctuations in debt levels, equity position, and leverage ratios over the observed period.

Long-term Debt, Including Current Maturities

The long-term debt showed a declining trend from 2013 through 2015, decreasing from 12,723 million US dollars to 10,547 million US dollars. However, in 2016, there was a slight increase to 10,812 million US dollars, followed by a notable decrease to 6,602 million US dollars in 2017. From 2017 onward, debt levels generally increased, peaking at 10,487 million US dollars in 2020. Subsequently, the debt slightly decreased in 2021 and 2022, before rising again to 9,196 million US dollars in 2023. This indicates that while the company managed to reduce its long-term debt significantly in certain years, it also took on additional debt in later years, particularly during the period 2018 to 2020.

Total Stockholders’ Equity (Deficit)

Stockholders’ equity initially increased from 4,363 million US dollars in 2013 to a peak of 5,985 million US dollars in 2015. Following this, equity levels declined substantially, dropping to 5,899 million in 2016 and then sharply down to 2,072 million in 2017. This downward trend continued, with equity turning negative from 2019 onwards, reaching a deficit of -2,360 million US dollars in 2023. The progressive decline and eventual negative equity position suggest significant losses or other adverse financial events impacting the company's net asset base.

Debt to Equity Ratio

The debt to equity ratio reflects increasing financial leverage and risk during the early years. The ratio decreased from 2.92 in 2013 to 1.76 in 2015, indicating relatively lower leverage. However, the ratio increased sharply to 3.19 by 2017 and then surged dramatically to 13.22 by 2018, which coincides with the substantial decline in equity. The lack of data for subsequent years precludes further ratio analysis, but the earlier trend indicates heightened leverage and increased reliance on debt financing as equity deteriorated.

In summary, the company experienced decreasing long-term debt and improving equity in the early years, followed by a period characterized by increased leverage, growing debt levels, and a steep decline in equity culminating in negative stockholders’ equity. The significant deterioration in equity and sharp rise in the debt to equity ratio suggest increased financial risk and potential distress during the later years of the observed period.