Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Income Statement
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Return on Equity (ROE) since 2013
- Return on Assets (ROA) since 2013
- Analysis of Revenues
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Solvency Ratios (Summary)
Hilton Worldwide Holdings Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The financial data displays several key leverage and coverage ratios over multiple quarters, allowing for an assessment of debt management and the company's ability to cover interest expenses.
- Debt to Capital Ratio
- The debt to capital ratio begins near 0.99 in early 2019, showing a gradual increasing trend through 2020 and 2021, reaching approximately 1.19 by the first quarter of 2021. The ratio continues rising with some fluctuations, notably moving from 1.10 to 1.44 between early 2022 and mid-2024. This indicates an increasing reliance on debt as a component of total capital over the period observed.
- Debt to Capital (Including Operating Lease Liability)
- This ratio parallels the debt to capital trend but is slightly lower, starting at 0.99 in March 2019 and increasing to 1.40 by June 2024. The values consistently trail just below the standard debt to capital ratio, suggesting operating lease liabilities contribute marginally to overall capital structuring but follow a similar pattern of growth in debt-related obligations.
- Debt to Assets Ratio
- The debt to assets ratio, starting at 0.50 in Q1 2019, generally trends upward, reflecting increased debt usage relative to assets. It rises more sharply in early 2020, coinciding with external economic conditions, and then stabilizes between 0.56 and 0.57 through much of 2021 and 2022. From early 2023 onward, the ratio increases again, reaching 0.65 by mid-2024, which points to growing leverage on the asset base.
- Debt to Assets (Including Operating Lease Liability)
- This ratio mirrors the non-inclusion debt to assets trend but at higher levels, beginning at 0.57 in early 2019 and gradually moving up to 0.70 in mid-2024. The inclusion of operating lease liabilities adds noticeable leverage, with the spread widening slightly over time, implying leases becoming more significant in the liability structure.
- Interest Coverage Ratio
- Interest coverage shows considerable volatility and negative values during the pandemic period, with a low reaching approximately -1.40 in late 2020, highlighting difficulties in meeting interest expenses at that time. Beginning in 2021, the ratio improves progressively, moving above 2.0 and finally stabilizing between 4.5 and 5.2 during 2022 through mid-2024, indicating strengthening earnings relative to interest costs and a more robust capacity to service debt.
Overall, the data suggest an increasing use of debt financing throughout the period, with leverage ratios progressively climbing. The strain from elevated leverage appeared most acute during 2020, as indicated by declining interest coverage, which then improves significantly in subsequent periods. The inclusion of operating lease liabilities shows that these obligations form a consistent part of the leverage but do not drastically alter the broader trend in leverage ratios. The recovery in interest coverage indicates improved operational performance or refinancing efforts to better handle debt obligations over time.
Debt Ratios
Coverage Ratios
Debt to Equity
Hilton Worldwide Holdings Inc., debt to equity calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Total Hilton stockholders’ equity (deficit) | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Airbnb Inc. | |||||||||||||||||||||||||||||
| Booking Holdings Inc. | |||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | |||||||||||||||||||||||||||||
| DoorDash, Inc. | |||||||||||||||||||||||||||||
| McDonald’s Corp. | |||||||||||||||||||||||||||||
| Starbucks Corp. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2024 Calculation
Debt to equity = Total debt ÷ Total Hilton stockholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data of the company over the period from March 31, 2019, to June 30, 2024, reveals several notable trends and patterns related to its total debt, stockholders’ equity, and debt to equity ratio.
- Total Debt
- The total debt has demonstrated a fluctuating but overall increasing trend. Starting at approximately $7.37 billion in March 2019, the total debt rose to a peak approaching $10.49 billion by December 2020. Following this peak, there was a decline through mid-2022, reaching a low around $8.73 billion by June 2023. However, debt levels increased again towards the later periods, peaking over $10 billion by the second quarter of 2024. This pattern suggests periods of increased borrowing or refinancing activities, followed by partial reductions and a renewed increase in debt obligations towards the end of the observed period.
- Total Hilton Stockholders’ Equity (Deficit)
- Stockholders’ equity showed a consistent downward trajectory throughout the period. Beginning with a modest positive balance of $100 million in March 2019, the equity declined sharply into negative territory by June 2019 and continued to worsen each quarter. The deficit deepened substantially, reaching a value exceeding a negative $3.1 billion by June 2024. This persistent decrease indicates continuous accumulation of losses, write-downs, or dividend distributions exceeding retained earnings, which negatively impacts the net worth attributed to shareholders.
- Debt to Equity Ratio
- Only one data point is provided for the debt to equity ratio as of March 31, 2019, showing an extremely high ratio of 73.65. Given the sharp decline in equity values to negative figures over following quarters, the debt to equity ratio would have become increasingly unfavorable and theoretically undefined or negative due to negative equity levels. This suggests a significant leverage risk and a financial structure heavily reliant on debt financing relative to shareholders’ investment. The initially high ratio, coupled with deteriorating equity, reflects a high financial risk profile and potential solvency concerns.
Overall, the financial data reveals a leveraging strategy accompanied by declining shareholder equity, which could raise concerns about the sustainability of the company’s capital structure. The fluctuating debt levels combined with continually negative equity call for careful scrutiny of liquidity and solvency risks going forward.
Debt to Equity (including Operating Lease Liability)
Hilton Worldwide Holdings Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Operating lease liabilities, non-current | |||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||||||||||
| Total Hilton stockholders’ equity (deficit) | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Booking Holdings Inc. | |||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | |||||||||||||||||||||||||||||
| DoorDash, Inc. | |||||||||||||||||||||||||||||
| Starbucks Corp. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Hilton stockholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
The analysis of Hilton Worldwide Holdings Inc.'s quarterly financial data reveals several significant trends and patterns from March 2019 through June 2024.
- Total Debt (Including Operating Lease Liability)
- The total debt increased substantially from US$8,468 million in March 2019, peaking around US$11,458 million by December 2020. This rise coincides with the global events affecting the hospitality industry during 2020. Following this peak, the debt level showed a general decreasing trend, dropping to approximately US$9,523 million by March 2024. However, a slight rebound occurred in the last two quarters, rising again to around US$10,958 million by June 2024. This pattern suggests a period of increased borrowing, possibly for liquidity during challenging periods, followed by partial deleveraging and renewed borrowing towards mid-2024.
- Total Hilton Stockholders' Equity (Deficit)
- Stockholders' equity exhibited a continuous downward trend throughout the period. Starting from a positive US$100 million in March 2019, it quickly turned negative by June 2019 and worsened progressively to a deficit of approximately US$3,116 million by June 2024. This persistent decline indicates accumulated losses or other equity-reducing events, reflecting substantial financial strain or restructuring activities. The growing equity deficit contrasts with minor fluctuations but no signs of recovery toward positive territory.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The only available figure for the debt to equity ratio is 84.68 as of March 31, 2019. Given the significant decrease in stockholders’ equity into the negative range and relatively high debt levels, this ratio likely increased substantially over time, suggesting a heavy leverage position and increased financial risk. The company's balance sheet shows signs of stress with high debt against a shrinking equity base.
In summary, the financial data indicates that Hilton Worldwide Holdings Inc. underwent a period of increased indebtedness through 2020, correlating with industry challenges. Despite some reduction in debt levels after 2020, stockholders’ equity continued to decline substantially, resulting in growing equity deficits. This combination signals heightened financial leverage and potentially elevated credit risk. The recent slight increase in debt toward mid-2024 may reflect renewed capital needs or strategic financing decisions. Overall, the financial position appears to have weakened over the examined timeframe, with no clear signs yet of equity recovery.
Debt to Capital
Hilton Worldwide Holdings Inc., debt to capital calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Total Hilton stockholders’ equity (deficit) | |||||||||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Airbnb Inc. | |||||||||||||||||||||||||||||
| Booking Holdings Inc. | |||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | |||||||||||||||||||||||||||||
| DoorDash, Inc. | |||||||||||||||||||||||||||||
| McDonald’s Corp. | |||||||||||||||||||||||||||||
| Starbucks Corp. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt of the company shows an overall increasing trend from March 31, 2019, through June 30, 2024. Initially, debt rose steadily from 7,365 million USD in early 2019 to a peak of approximately 10,490 million USD by the end of 2020. This was followed by a gradual decrease and stabilization around 8,700 million USD during 2021 and 2022. However, starting in early 2023, the total debt began to rise again, reaching a high of over 10,000 million USD by mid-2024.
- Total Capital
- Total capital exhibited fluctuations over the period. It declined from 7,465 million USD at the beginning of 2019 to a low point near 6,836 million USD by March 31, 2024. Notably, there was an intermittent recovery observed around late 2021 and early 2022, when total capital increased back above 8,000 million USD. However, this was not sustained, as the subsequent trend was downward overall, reflecting a reduction in the equity and borrowings base relative to previous years.
- Debt to Capital Ratio
- The debt to capital ratio consistently exceeded 1.0 throughout the entire period, indicating the company’s debt levels are higher than its total capital. The ratio trended upward from 0.99 at the start of 2019, reaching approximately 1.44 by mid-2024. This steady increase suggests that debt constitutes an increasing proportion of the company's capital structure, implying a higher financial leverage and potentially greater risk exposure.
- Summary Insights
- Overall, the company’s capital structure has moved towards higher leverage over the observed period. The rising total debt combined with a declining or fluctuating total capital base leads to an increased debt-to-capital ratio, highlighting elevated reliance on debt financing. The upward trajectory in leverage might reflect strategic financing decisions, possibly influenced by external factors or investment activities. However, the increasing leverage also suggests heightened financial risk, which warrants close monitoring, especially in the context of shifting macroeconomic conditions or changes in the operational environment.
Debt to Capital (including Operating Lease Liability)
Hilton Worldwide Holdings Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Operating lease liabilities, non-current | |||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||||||||||
| Total Hilton stockholders’ equity (deficit) | |||||||||||||||||||||||||||||
| Total capital (including operating lease liability) | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Booking Holdings Inc. | |||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | |||||||||||||||||||||||||||||
| DoorDash, Inc. | |||||||||||||||||||||||||||||
| Starbucks Corp. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates notable fluctuations in the company's debt and capital structure over the examined periods. The total debt, including operating lease liability, showed an increasing trend from March 2019 through March 2020, rising from 8,468 million US dollars to a peak of 11,458 million by December 2020. Following this peak, debt levels generally declined through December 2022, reaching a low of approximately 9,517 million US dollars. However, beginning in March 2023, there is a renewed upward trajectory, with debt increasing again to over 10,000 million US dollars by June 2024.
Total capital, also inclusive of operating lease liability, exhibited a somewhat similar pattern but with more pronounced volatility. The figures rose gradually from 8,568 million in March 2019 to reach approximately 10,120 million by September 2020. This was followed by a marked decline to a trough around 7,644 million in March 2024, with some fluctuations during this downward trend. The decline in total capital suggests either asset reductions, liabilities changes, or variations in equity components during this interval.
The debt to capital ratio consistently exceeds 1.0 throughout the periods, reflecting that debt obligations surpass the total capital base, an unusual and potentially concerning financial characteristic. From March 2019, this ratio escalated steadily from 0.99 to 1.15 by December 2020, indicating an increasing reliance on debt financing relative to capital. After a brief dip to approximately 1.09 in December 2021, the ratio resumed an upward course, reaching 1.40 by June 2024. This ongoing rise points to a progressively leveraged balance sheet, raising considerations about financial risk and capital structure sustainability.
Overall, the data reveals a pattern of initial growth in borrowing and capital accumulation followed by a contraction phase and recent renewed debt increases. The continuous rise in the debt to capital ratio suggests that debt is growing faster than capital, which might pose risks related to solvency and financial flexibility if the trend persists. Close monitoring and potential strategic adjustments are advisable to maintain financial stability.
Debt to Assets
Hilton Worldwide Holdings Inc., debt to assets calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Airbnb Inc. | |||||||||||||||||||||||||||||
| Booking Holdings Inc. | |||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | |||||||||||||||||||||||||||||
| DoorDash, Inc. | |||||||||||||||||||||||||||||
| McDonald’s Corp. | |||||||||||||||||||||||||||||
| Starbucks Corp. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited an upward trend starting from March 31, 2019, at approximately $7.37 billion, peaking near the end of 2020 around $10.49 billion. Following this peak, total debt generally stabilized around $8.7 billion through 2021 and 2022, before increasing again in the first half of 2024 to reach over $10.1 billion.
- Total Assets
- Total assets experienced moderate fluctuations over the observed periods. Beginning at roughly $14.85 billion in early 2019, assets grew and peaked during mid-2020 at approximately $17.13 billion. Subsequently, there was a decline towards the end of 2020 and through 2021, with stabilization near $15.5 billion through 2022 and early 2023. Assets increased again in mid-2024 to about $15.9 billion but showed a slightly lower figure towards the middle of 2024.
- Debt to Assets Ratio
- The debt to assets ratio showed a gradual increase from 0.50 in March 2019 to a peak of 0.63 at the end of 2020, reflecting a relative rise in debt compared to assets during that period. Afterward, the ratio decreased slightly and stabilized between 0.56 and 0.57 throughout 2021 to early 2023. However, it trended upward once more from late 2023 into mid-2024, reaching 0.65, indicating a higher leverage level relative to available assets.
- Overall Trends and Insights
- The data reveals a pattern of increased indebtedness through 2020, coinciding with a peak in total assets, likely reflecting strategic financial adjustments or responses to external factors during that period. Following this, there was a period of relative stabilization in both debt and assets throughout 2021 and 2022. The resurgence in total debt alongside a fairly stable asset base in 2024 suggests elevated leverage, highlighting increased financial risk or renewed investment activity. The fluctuating debt to asset ratio underscores changing capital structure dynamics, with recent values indicating a cautious approach to debt management or shifts in asset composition.
Debt to Assets (including Operating Lease Liability)
Hilton Worldwide Holdings Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
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| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Operating lease liabilities, non-current | |||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Booking Holdings Inc. | |||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | |||||||||||||||||||||||||||||
| DoorDash, Inc. | |||||||||||||||||||||||||||||
| Starbucks Corp. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends regarding debt levels, asset base, and leverage ratios over the observed periods.
- Total Debt (including operating lease liability)
- The total debt position showed a generally increasing trend from March 2019, starting at approximately $8.5 billion, and reaching a peak around $11.5 billion by December 2020. Following this peak, total debt somewhat declined during 2021 and 2022, stabilizing just below $9.6 billion. In early 2023, debt levels remained relatively consistent around $9.5 billion but subsequently increased again towards mid to late 2024, surpassing $10.9 billion by the latest period.
- Total Assets
- Total assets demonstrated an initial moderate increase from about $14.9 billion in early 2019, rising to a high around $17.1 billion in mid to late 2019. However, from late 2019 through 2021, assets decreased steadily, falling back close to $15 billion by mid-2021. Throughout 2022 and into 2024, total assets fluctuated modestly between approximately $15.2 billion and $15.9 billion, without strong directional movement but with a slight uptick near the latest quarters.
- Debt to Assets Ratio (including operating lease liability)
- The leverage ratio rose sharply from 0.57 in early 2019 to a peak of 0.68 by the end of 2020, reflecting the simultaneous rise in debt exceeding asset growth. Subsequently, the ratio declined gradually through 2021 and 2022, reaching around 0.61–0.62, corresponding to the period of debt reduction and relative asset stability. Early 2023 showed a slight increase again in this ratio, advancing from approximately 0.63 to 0.7 by mid-2024, indicating renewed incremental debt increases relative to assets.
Overall, the data indicates a cyclical pattern where debt significantly increased through 2020, outpacing asset growth and raising leverage. This was followed by a period of debt management and moderate deleveraging in 2021-2022. The early-to-mid 2024 period suggests a renewed upward pressure on debt relative to assets, resulting in elevated leverage ratios nearing historical highs observed in 2020. Asset base changes were comparatively moderate throughout, implying that shifts in leverage were primarily driven by fluctuations in debt levels.
Financial Leverage
Hilton Worldwide Holdings Inc., financial leverage calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
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| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Total Hilton stockholders’ equity (deficit) | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Airbnb Inc. | |||||||||||||||||||||||||||||
| Booking Holdings Inc. | |||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | |||||||||||||||||||||||||||||
| DoorDash, Inc. | |||||||||||||||||||||||||||||
| McDonald’s Corp. | |||||||||||||||||||||||||||||
| Starbucks Corp. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2024 Calculation
Financial leverage = Total assets ÷ Total Hilton stockholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
- Total Assets
- The total assets exhibit a generally fluctuating pattern over the analyzed period. Initially, from the end of March 2019 to the end of June 2020, there is an upward trend increasing from approximately 14.9 billion to 17.1 billion US dollars. Following this peak, total assets decline slightly and remain relatively stable throughout 2021 and early 2022, fluctuating around the 15.4 to 15.5 billion mark. In the latest quarters through mid-2024, total assets show signs of slight recovery, increasing from approximately 15.2 billion to around 15.9 billion US dollars.
- Total Hilton Stockholders’ Equity (Deficit)
- This item reveals a persistent negative equity balance across the entire period, indicating a deficit situation. The deficit deepens from a relatively low positive equity of 100 million US dollars in March 2019, turning negative by the second quarter of 2019, and continuing to worsen through to June 2024. The equity deficit expands from about -30 million US dollars mid-2019, to approximately -3.1 billion US dollars by mid-2024 with no evidence of recovery. Notably, the deficit expands more sharply from mid-2022 onwards, suggesting increasing liabilities or losses that exceed total equity during this timeframe.
- Financial Leverage
- The financial leverage ratio is only reported once, at the start of the period, at a very high level of 148.53. Absence of subsequent data precludes trend analysis, but the initial value suggests a very high degree of leverage at the beginning of the analyzed timeframe.
- Overall Analysis
- The data indicates that while total assets have shown some resilience and partial recovery following the initial increase and subsequent decline, total stockholders’ equity remains negative and deteriorates over time. This persistent and deepening equity deficit raises concerns about the company’s financial structure and solvency risk. The lack of updated financial leverage ratios limits the ability to fully assess changes in capital structure risk; however, the high initial leverage combined with increasing negative equity points to sustained financial vulnerability.
Interest Coverage
Hilton Worldwide Holdings Inc., interest coverage calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
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| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) attributable to Hilton stockholders | |||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | |||||||||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||||||||
| Add: Interest expense | |||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Booking Holdings Inc. | |||||||||||||||||||||||||||||
| DoorDash, Inc. | |||||||||||||||||||||||||||||
| McDonald’s Corp. | |||||||||||||||||||||||||||||
| Starbucks Corp. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2024 Calculation
Interest coverage
= (EBITQ2 2024
+ EBITQ1 2024
+ EBITQ4 2023
+ EBITQ3 2023)
÷ (Interest expenseQ2 2024
+ Interest expenseQ1 2024
+ Interest expenseQ4 2023
+ Interest expenseQ3 2023)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values demonstrate significant volatility over the observed periods. Initially, EBIT rose from 316 million US dollars in March 2019 to a peak of 526 million by September 2019, followed by a decline to 353 million in December 2019. The trend reversed sharply in 2020, with EBIT turning negative in June (-338 million) and December (-236 million), indicating substantial operational challenges likely influenced by external factors. Beginning in 2021, EBIT progressively improved, moving from negative or low figures into consistent positive territory. The period from 2022 onwards shows robust EBIT growth, reaching as high as 732 million US dollars by June 2024. This recovery reflects a strong operational rebound and likely improved market conditions or strategic initiatives.
- Interest expense
- Interest expense shows a gradual upward trend across the timeframe. Starting at 98 million US dollars in March 2019, the cost increased moderately with periodic fluctuations, reaching 141 million by June 2024. The increase in interest expense suggests rising borrowings or higher interest rates, which correlates with the company's financing activities or changes in debt structure over time.
- Interest coverage ratio
- The interest coverage ratio shows considerable fluctuation in the initial and middle periods, reflecting challenges in earnings relative to interest obligations. Data from 2020 reveals very low or negative ratios, as earnings were insufficient to cover interest expense, indicating financial strain. However, starting in late 2020 into 2021, the ratio improved markedly, reaching levels above 4 by 2022 and sustaining this elevated coverage through mid-2024. This trend signals enhanced capacity to meet interest payments comfortably, indicative of strengthening operational performance and potentially improved creditworthiness.
- Overall analysis
- The combined data suggests that the company experienced a significant downturn in financial performance during 2020, with negative EBIT and weak interest coverage reflecting operational and financial stress. Following this period, a notable recovery occurred, with EBIT growth outpacing the rise in interest expense, leading to improved interest coverage ratios. This recovery phase points to effective management response to previous challenges and restored financial stability. The continuing improvement through mid-2024 highlights a positive outlook regarding profitability and debt servicing capability.