Debt to Equity
since 2013
Calculation
Hilton Worldwide Holdings Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current maturities1 | ÷ | Total Hilton stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|
| Dec 31, 2023 | — | = | 9,196) | ÷ | (2,360) |
| Dec 31, 2022 | — | = | 8,747) | ÷ | (1,102) |
| Dec 31, 2021 | — | = | 8,766) | ÷ | (821) |
| Dec 31, 2020 | — | = | 10,487) | ÷ | (1,490) |
| Dec 31, 2019 | — | = | 7,993) | ÷ | (482) |
| Dec 31, 2018 | 13.22 | = | 7,282) | ÷ | 551) |
| Dec 31, 2017 | 3.19 | = | 6,602) | ÷ | 2,072) |
| Dec 31, 2016 | 1.83 | = | 10,812) | ÷ | 5,899) |
| Dec 31, 2015 | 1.76 | = | 10,547) | ÷ | 5,985) |
| Dec 31, 2014 | 2.46 | = | 11,692) | ÷ | 4,752) |
| Dec 31, 2013 | 2.92 | = | 12,723) | ÷ | 4,363) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 US$ in millions
An analysis of the financial position from 2013 to 2023 reveals a significant shift in the capital structure, characterized by a transition from positive stockholders' equity to a persistent deficit. While long-term debt levels have fluctuated, the more critical trend is the erosion of the equity base, which has fundamentally altered the company's leverage profile.
- Long-term Debt Trajectory
- Long-term debt, including current maturities, exhibited a general decline from 2013 to 2017, falling from 12,723 million US$ to a low of 6,602 million US$. Following this period, debt levels rose again, peaking at 10,487 million US$ in 2020. Between 2021 and 2023, the debt level stabilized, ending the period at 9,196 million US$.
- Equity and Capital Deficit
- Stockholders' equity showed a period of growth between 2013 and 2015, reaching 5,985 million US$. However, a sharp decline began in 2017, with equity dropping to 2,072 million US$, and further collapsing to 551 million US$ in 2018. From 2019 onward, the company entered a state of negative equity, with the deficit widening to 2,360 million US$ by December 31, 2023.
- Debt to Equity Ratio Analysis
- The debt to equity ratio initially improved from 2.92 in 2013 to 1.76 in 2015, reflecting a healthier balance between borrowed funds and owner capital. This trend reversed sharply as the equity base diminished, with the ratio climbing to 3.19 in 2017 and spiking to 13.22 in 2018. Due to the transition to negative stockholders' equity starting in 2019, the ratio is no longer presented as a positive numeric value, indicating a highly leveraged position where liabilities exceed total assets.
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Comparison to Competitors
Hilton Worldwide Holdings Inc., debt to equity, long-term trends, comparison to competitors
| Hilton Worldwide Holdings Inc. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | DoorDash, Inc. | McDonald’s Corp. | Starbucks Corp. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | — | 0.00 | — | 0.00 | 0.00 | — | — |
| Dec 31, 2022 | — | 0.00 | 4.49 | 0.00 | 0.00 | — | — |
| Dec 31, 2021 | — | 0.00 | 1.77 | 0.00 | 0.00 | — | — |
| Dec 31, 2020 | — | 0.63 | 2.46 | 0.00 | 0.08 | — | — |
| Dec 31, 2019 | — | — | 1.45 | 0.00 | — | — | — |
| Dec 31, 2018 | 13.22 | — | 0.98 | 0.00 | — | — | 8.07 |
| Dec 31, 2017 | 3.19 | — | 0.85 | 0.00 | — | — | 0.72 |
| Dec 31, 2016 | 1.83 | — | 0.73 | 0.00 | — | — | 0.61 |
| Dec 31, 2015 | 1.76 | — | 0.70 | 0.00 | — | 3.40 | 0.40 |
| Dec 31, 2014 | 2.46 | — | 0.45 | 0.00 | — | 1.17 | 0.39 |
| Dec 31, 2013 | 2.92 | — | 0.28 | 0.00 | — | 0.88 | 0.29 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Sector (Consumer Services)
Hilton Worldwide Holdings Inc., debt to equity, long-term trends, comparison to sector (consumer services)
| Hilton Worldwide Holdings Inc. | Consumer Services | |
|---|---|---|
| Dec 31, 2023 | — | 26.64 |
| Dec 31, 2022 | — | 23.03 |
| Dec 31, 2021 | — | 7.65 |
| Dec 31, 2020 | — | — |
| Dec 31, 2019 | — | — |
| Dec 31, 2018 | 13.22 | 9.57 |
| Dec 31, 2017 | 3.19 | 2.90 |
| Dec 31, 2016 | 1.83 | 2.46 |
| Dec 31, 2015 | 1.76 | 1.37 |
| Dec 31, 2014 | 2.46 | 0.73 |
| Dec 31, 2013 | 2.92 | 0.60 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Industry (Consumer Discretionary)
Hilton Worldwide Holdings Inc., debt to equity, long-term trends, comparison to industry (consumer discretionary)
| Hilton Worldwide Holdings Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2023 | — | 1.28 |
| Dec 31, 2022 | — | 1.44 |
| Dec 31, 2021 | — | 1.41 |
| Dec 31, 2020 | — | 2.17 |
| Dec 31, 2019 | — | 2.60 |
| Dec 31, 2018 | 13.22 | 2.59 |
| Dec 31, 2017 | 3.19 | 2.55 |
| Dec 31, 2016 | 1.83 | 2.21 |
| Dec 31, 2015 | 1.76 | 1.88 |
| Dec 31, 2014 | 2.46 | 1.60 |
| Dec 31, 2013 | 2.92 | 1.25 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).