Return on Equity (ROE)
since 2013
Calculation
Hilton Worldwide Holdings Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to Hilton stockholders1 | ÷ | Total Hilton stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | — | = | 100 | × | 1,141) | ÷ | (2,360) |
| Dec 31, 2022 | — | = | 100 | × | 1,255) | ÷ | (1,102) |
| Dec 31, 2021 | — | = | 100 | × | 410) | ÷ | (821) |
| Dec 31, 2020 | — | = | 100 | × | (715) | ÷ | (1,490) |
| Dec 31, 2019 | — | = | 100 | × | 881) | ÷ | (482) |
| Dec 31, 2018 | 138.66% | = | 100 | × | 764) | ÷ | 551) |
| Dec 31, 2017 | 60.76% | = | 100 | × | 1,259) | ÷ | 2,072) |
| Dec 31, 2016 | 5.90% | = | 100 | × | 348) | ÷ | 5,899) |
| Dec 31, 2015 | 23.46% | = | 100 | × | 1,404) | ÷ | 5,985) |
| Dec 31, 2014 | 14.16% | = | 100 | × | 673) | ÷ | 4,752) |
| Dec 31, 2013 | 9.51% | = | 100 | × | 415) | ÷ | 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
The financial data reveals significant fluctuations in the company's profitability and equity position over the examined period.
- Net income (loss) attributable to Hilton stockholders
- The net income exhibited a generally positive trend from 2013 through 2019, with notable growth peaks. Net income started at $415 million in 2013, increasing substantially to $1,404 million by 2015. After a decrease in 2016 to $348 million, it rose again, reaching $1,259 million in 2017. However, there was volatility as the figure dropped to $764 million in 2018 before increasing slightly to $881 million in 2019. In 2020, the company reported a significant loss of $715 million, likely reflecting external adverse conditions, followed by a recovery in 2021 to $410 million, and a further increase reaching $1,255 million in 2022 and $1,141 million in 2023. Overall, net income showed resilience and recovery after the 2020 downturn.
- Total Hilton stockholders’ equity (deficit)
- Stockholders’ equity showed a growth phase from 2013 to 2016, rising from $4,363 million in 2013 to a peak of $5,899 million in 2016. After 2016, a sharp decline occurred, with equity dropping to $2,072 million in 2017 and further plunging to $551 million in 2018. The trend steepened negatively in 2019, turning equity into a deficit of $482 million. This deficit deepened in subsequent years, with values reported at -$1,490 million in 2020, -$821 million in 2021, -$1,102 million in 2022, and reaching -$2,360 million in 2023. The pattern indicates considerable erosion in equity, suggesting either accumulated losses, increased liabilities, or other balance sheet adjustments impacting stockholders’ equity adversely over this period.
- Return on Equity (ROE)
- The ROE metrics show high variability during the available reporting years. Starting at 9.51% in 2013, ROE increased to 14.16% in 2014, then sharply to 23.46% in 2015. A decline to 5.9% was observed in 2016, followed by an extraordinary surge to 60.76% in 2017 and a peak at 138.66% in 2018. The data for following years is missing, which coincides with the onset of the equity deficit. The unusually high ROE in 2017 and 2018 may suggest significant returns relative to a drastically reduced equity base, which is consistent with the sharp declines seen in stockholders’ equity during these years.
In summary, the company experienced volatility in net income with a severe loss in 2020 likely related to external disruptions, followed by recovery in the following years. Stockholders’ equity demonstrated a strong decline beginning in 2017 and progressing into a notable deficit, indicating financial challenges or restructuring impacts. The elevated ROE values during 2017 and 2018 reflect disproportionate returns on a diminished equity base, emphasizing the caution required when interpreting profitability ratios in the context of declining equity. These financial patterns underscore stress in the company's equity structure alongside fluctuating profitability.
Comparison to Competitors
Hilton Worldwide Holdings Inc., ROE, 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 | — | 58.69% | — | 40.13% | -8.20% | — | — |
| Dec 31, 2022 | — | 34.05% | 109.92% | 37.97% | -20.21% | — | — |
| Dec 31, 2021 | — | -7.37% | 18.86% | 28.42% | -10.03% | — | — |
| Dec 31, 2020 | — | -158.00% | 1.21% | 17.61% | -9.81% | — | — |
| Dec 31, 2019 | — | — | 82.00% | 20.81% | — | — | — |
| Dec 31, 2018 | 138.66% | — | 45.51% | 12.25% | — | — | 386.34% |
| Dec 31, 2017 | 60.76% | — | 20.79% | 12.92% | — | — | 52.93% |
| Dec 31, 2016 | 5.90% | — | 21.74% | 1.64% | — | — | 47.89% |
| Dec 31, 2015 | 23.46% | — | 29.01% | 22.35% | — | 63.90% | 47.39% |
| Dec 31, 2014 | 14.16% | — | 28.27% | 22.13% | — | 37.02% | 39.23% |
| Dec 31, 2013 | 9.51% | — | 27.39% | 21.29% | — | 34.89% | 0.19% |
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).
Comparison to Sector (Consumer Services)
Hilton Worldwide Holdings Inc., ROE, long-term trends, comparison to sector (consumer services)
| Hilton Worldwide Holdings Inc. | Consumer Services | |
|---|---|---|
| Dec 31, 2023 | — | 863.51% |
| Dec 31, 2022 | — | 506.32% |
| Dec 31, 2021 | — | 159.36% |
| Dec 31, 2020 | — | — |
| Dec 31, 2019 | — | — |
| Dec 31, 2018 | 138.66% | 284.52% |
| Dec 31, 2017 | 60.76% | 71.55% |
| Dec 31, 2016 | 5.90% | 64.84% |
| Dec 31, 2015 | 23.46% | 43.28% |
| Dec 31, 2014 | 14.16% | 33.77% |
| Dec 31, 2013 | 9.51% | 27.00% |
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., ROE, long-term trends, comparison to industry (consumer discretionary)
| Hilton Worldwide Holdings Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2023 | — | 29.93% |
| Dec 31, 2022 | — | 20.78% |
| Dec 31, 2021 | — | 33.71% |
| Dec 31, 2020 | — | 24.49% |
| Dec 31, 2019 | — | 34.62% |
| Dec 31, 2018 | 138.66% | 34.33% |
| Dec 31, 2017 | 60.76% | 22.85% |
| Dec 31, 2016 | 5.90% | 28.74% |
| Dec 31, 2015 | 23.46% | 29.03% |
| Dec 31, 2014 | 14.16% | 20.60% |
| Dec 31, 2013 | 9.51% | 20.34% |
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).