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 trajectory from 2013 to 2023 reveals a significant divergence between profitability and the capital structure. While net income has demonstrated overall resilience and recovery, the stockholders' equity has shifted from a positive position to a substantial deficit, fundamentally altering the utility of return-based metrics.
- Net Income Trends
- Net income exhibited steady growth between 2013 and 2015, peaking at 1,404 million US dollars. After a period of volatility between 2016 and 2019, a sharp contraction occurred in 2020, resulting in a net loss of 715 million US dollars. A strong recovery followed, with net income rebounding to 1,255 million US dollars by 2022 and maintaining a high level of 1,141 million US dollars in 2023.
- Equity Base Erosion
- A consistent downward trend in total stockholders' equity is observed starting after 2015. Equity decreased from 5,985 million US dollars in 2015 to 2,072 million US dollars in 2017, eventually crossing into a deficit of 482 million US dollars by 2019. This negative equity position deepened over subsequent years, reaching 2,360 million US dollars by the end of 2023, suggesting a highly leveraged financial position or an aggressive capital return strategy.
- Return on Equity (ROE) Interpretation
- ROE grew moderately from 9.51% in 2013 to 23.46% in 2015. Between 2017 and 2018, the ratio experienced an exponential increase, reaching 60.76% and 138.66% respectively. This surge was not primarily driven by operational growth, but rather by the rapidly shrinking equity base used as the denominator. Following the transition to negative equity in 2019, ROE values are absent, as the metric loses its analytical validity when stockholders' equity is a deficit.
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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).