Return on Assets (ROA)
since 2013
Calculation
Hilton Worldwide Holdings Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to Hilton stockholders1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 7.41% | = | 100 | × | 1,141) | ÷ | 15,401) |
| Dec 31, 2022 | 8.09% | = | 100 | × | 1,255) | ÷ | 15,512) |
| Dec 31, 2021 | 2.66% | = | 100 | × | 410) | ÷ | 15,441) |
| Dec 31, 2020 | -4.27% | = | 100 | × | (715) | ÷ | 16,755) |
| Dec 31, 2019 | 5.89% | = | 100 | × | 881) | ÷ | 14,957) |
| Dec 31, 2018 | 5.46% | = | 100 | × | 764) | ÷ | 13,995) |
| Dec 31, 2017 | 8.80% | = | 100 | × | 1,259) | ÷ | 14,308) |
| Dec 31, 2016 | 1.33% | = | 100 | × | 348) | ÷ | 26,211) |
| Dec 31, 2015 | 5.46% | = | 100 | × | 1,404) | ÷ | 25,716) |
| Dec 31, 2014 | 2.58% | = | 100 | × | 673) | ÷ | 26,125) |
| Dec 31, 2013 | 1.56% | = | 100 | × | 415) | ÷ | 26,562) |
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 Return on Assets (ROA) between 2013 and 2023 exhibits significant volatility, characterized by a period of early growth, a structural shift in the asset base, a severe contraction, and a subsequent recovery to high efficiency levels.
- Initial Growth and Volatility (2013–2016)
- From 2013 to 2015, a steady increase in ROA is observed, rising from 1.56% to 5.46%. This improvement was primarily driven by a substantial increase in net income, which grew from 415 million US$ to 1.4 billion US$ while the total asset base remained relatively constant. This upward trend was reversed in 2016, as net income dropped to 348 million US$, resulting in an ROA decline to 1.33%.
- Asset Base Reduction and Peak Efficiency (2017–2019)
- A significant structural change occurred in 2017, where total assets decreased from 26.2 billion US$ to 14.3 billion US$. This reduction in the asset denominator, coupled with a recovery in net income to 1.26 billion US$, propelled the ROA to its highest level in the analyzed period at 8.80%. For the remainder of this phase, the ROA remained elevated, fluctuating between 5.46% and 5.89% through 2019.
- Pandemic Contraction and Recovery (2020–2023)
- A sharp downturn is evident in 2020, where net income shifted to a loss of 715 million US$, leading to a negative ROA of -4.27%. A consistent recovery followed, with ROA returning to 2.66% in 2021 and surging to 8.09% in 2022. By 2023, the ROA stabilized at 7.41%, indicating a return to high operational efficiency supported by a streamlined asset base of approximately 15.4 billion US$.
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Comparison to Competitors
Hilton Worldwide Holdings Inc., ROA, 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 | 7.41% | 23.21% | 17.62% | 15.27% | -5.15% | 15.08% | 14.01% |
| Dec 31, 2022 | 8.09% | 11.80% | 12.06% | 12.98% | -13.94% | 12.25% | 11.73% |
| Dec 31, 2021 | 2.66% | -2.57% | 4.93% | 9.81% | -6.87% | 14.01% | 13.38% |
| Dec 31, 2020 | -4.27% | -43.70% | 0.27% | 5.95% | -7.26% | 8.99% | 3.16% |
| Dec 31, 2019 | 5.89% | — | 22.73% | 6.86% | — | 12.68% | 18.73% |
| Dec 31, 2018 | 5.46% | — | 17.62% | 7.79% | — | 18.06% | 18.70% |
| Dec 31, 2017 | 8.80% | — | 9.20% | 8.62% | — | 15.36% | 20.08% |
| Dec 31, 2016 | 1.33% | — | 10.76% | 1.13% | — | 15.11% | 19.66% |
| Dec 31, 2015 | 5.46% | — | 14.65% | 17.45% | — | 11.94% | 22.15% |
| Dec 31, 2014 | 2.58% | — | 16.21% | 17.49% | — | 13.88% | 19.23% |
| Dec 31, 2013 | 1.56% | — | 18.12% | 16.30% | — | 15.25% | 0.07% |
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., ROA, long-term trends, comparison to sector (consumer services)
| Hilton Worldwide Holdings Inc. | Consumer Services | |
|---|---|---|
| Dec 31, 2023 | 7.41% | 14.95% |
| Dec 31, 2022 | 8.09% | 10.21% |
| Dec 31, 2021 | 2.66% | 9.37% |
| Dec 31, 2020 | -4.27% | 0.81% |
| Dec 31, 2019 | 5.89% | 15.92% |
| Dec 31, 2018 | 5.46% | 17.84% |
| Dec 31, 2017 | 8.80% | 14.00% |
| Dec 31, 2016 | 1.33% | 14.37% |
| Dec 31, 2015 | 5.46% | 14.62% |
| Dec 31, 2014 | 2.58% | 15.50% |
| Dec 31, 2013 | 1.56% | 12.90% |
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., ROA, long-term trends, comparison to industry (consumer discretionary)
| Hilton Worldwide Holdings Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2023 | 7.41% | 7.57% |
| Dec 31, 2022 | 8.09% | 4.81% |
| Dec 31, 2021 | 2.66% | 7.99% |
| Dec 31, 2020 | -4.27% | 4.36% |
| Dec 31, 2019 | 5.89% | 5.57% |
| Dec 31, 2018 | 5.46% | 5.96% |
| Dec 31, 2017 | 8.80% | 4.05% |
| Dec 31, 2016 | 1.33% | 5.57% |
| Dec 31, 2015 | 5.46% | 6.25% |
| Dec 31, 2014 | 2.58% | 4.75% |
| Dec 31, 2013 | 1.56% | 5.52% |
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).