Operating Profit Margin
since 2013
Calculation
Hilton Worldwide Holdings Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 21.74% | = | 100 | × | 2,225) | ÷ | 10,235) |
| Dec 31, 2022 | 23.87% | = | 100 | × | 2,094) | ÷ | 8,773) |
| Dec 31, 2021 | 17.45% | = | 100 | × | 1,010) | ÷ | 5,788) |
| Dec 31, 2020 | -9.71% | = | 100 | × | (418) | ÷ | 4,307) |
| Dec 31, 2019 | 17.53% | = | 100 | × | 1,657) | ÷ | 9,452) |
| Dec 31, 2018 | 16.08% | = | 100 | × | 1,432) | ÷ | 8,906) |
| Dec 31, 2017 | 15.01% | = | 100 | × | 1,372) | ÷ | 9,140) |
| Dec 31, 2016 | 15.96% | = | 100 | × | 1,861) | ÷ | 11,663) |
| Dec 31, 2015 | 18.37% | = | 100 | × | 2,071) | ÷ | 11,272) |
| Dec 31, 2014 | 15.93% | = | 100 | × | 1,673) | ÷ | 10,502) |
| Dec 31, 2013 | 11.32% | = | 100 | × | 1,102) | ÷ | 9,735) |
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
The operating profit margin of Hilton Worldwide Holdings Inc. exhibited a general upward trajectory from 2013 to 2019, followed by a severe contraction in 2020 and a robust recovery through 2023. Over the eleven-year period, the company transitioned from a margin of 11.32% to a significantly higher baseline, despite a period of extreme volatility during the global pandemic.
- Pre-Pandemic Growth and Stability (2013–2019)
- A period of steady margin expansion is observed between 2013 and 2015, where the operating profit margin rose from 11.32% to a peak of 18.37%. From 2016 to 2019, the margin stabilized, fluctuating within a range of 15.01% to 17.53%. During this phase, revenues remained relatively strong, peaking in 2016 at 11,663 million US dollars.
- The 2020 Operational Contraction
- A sharp decline occurred in 2020, with the operating profit margin dropping to -9.71%. This downturn was driven by a substantial decrease in revenues, which fell to 4,307 million US dollars, resulting in an operating loss of 418 million US dollars. This represents the only instance of negative operating profitability within the analyzed timeframe.
- Recovery and Margin Expansion (2021–2023)
- A rapid recovery is evident starting in 2021, with the margin returning to 17.45%. This recovery accelerated in 2022, reaching a historical peak of 23.87%, the highest margin in the reported period. While the margin slightly moderated to 21.74% in 2023, operating income reached its highest absolute value of 2,225 million US dollars, signaling an improved efficiency in converting revenue into operating profit compared to pre-2020 levels.
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Comparison to Competitors
Hilton Worldwide Holdings Inc., operating profit margin, 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 | 21.74% | 15.31% | 27.31% | 15.78% | -6.71% | 45.68% | 16.32% |
| Dec 31, 2022 | 23.87% | 21.45% | 29.85% | 13.44% | -17.07% | 40.42% | 14.32% |
| Dec 31, 2021 | 17.45% | 7.17% | 22.78% | 10.67% | -9.25% | 44.59% | 16.77% |
| Dec 31, 2020 | -9.71% | -106.27% | -9.28% | 4.85% | -15.11% | 38.13% | 6.64% |
| Dec 31, 2019 | 17.53% | — | 35.48% | 7.95% | — | 43.03% | 15.38% |
| Dec 31, 2018 | 16.08% | — | 36.77% | 5.31% | — | 41.96% | 15.71% |
| Dec 31, 2017 | 15.01% | — | 35.79% | 6.05% | — | 41.86% | 18.47% |
| Dec 31, 2016 | 15.96% | — | 27.05% | 0.89% | — | 31.45% | 19.57% |
| Dec 31, 2015 | 18.37% | — | 35.33% | 16.96% | — | 28.12% | 18.79% |
| Dec 31, 2014 | 15.93% | — | 36.41% | 17.30% | — | 28.97% | 18.73% |
| Dec 31, 2013 | 11.32% | — | 35.51% | 16.57% | — | 31.18% | -2.19% |
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).